Whistling Past Graveyards

Tuesday, December 27, 2005
Posted in category Uncategorized
Comments Off

Euro Pacific’s Peter Schiff nails it again with this piece on General Motors, gold, the housing bubble, the pension debacle, and Kudlow Komedy.

Now that these contingent liabilities are coming due, workers in both sectors are in for rather rude awakenings. With personal savings at an all-time low, rising interest rates, and falling real incomes, retirement in America will soon be as passe as the single income household.

Schiff, however, falls into a painfully cliched trap. He comically states:

Shares of General Motors, once the world’s largest company, the icon of America’s industrial might, at one time close to being declared a monopoly by a 1950′s Congressional investigation, this week plunged to a new 80 year low. Years ago, my prediction that the company would ultimately face bankruptcy seemed radical. Today that assertion no longer seems so far-fetched. The truth is that GM sold too many gas guzzling SUV’s to too many people without making any profits, saturating its market and piling up debt and pension liabilities in the process.

The “gas guzzling” crap is getting old. How simplistic and personal can one get by blaming GM’s myriad debacles on manufacturing SUVs. ??? Schiff sounds like he has been conversing with the ignorant tyrant Arianna Huffington. GM’s problems are buried deep in short-term bubblemania, bureaucracy, and the perverted, American way of doing business: short-term glory and long-term hell. The Japs, in fact, have also been cranking out SUVs–just like the Detroit boys–and in fact, they make far better SUVs than GM. Schiff lost an inch of credibility, here, for not stepping around his personal dislikes for the sake of intelligent analysis.

Be Sociable, Share!
Both comments and pings are currently closed.