The latest success—I suppose you could call it that, at least for those involved on the financial end—was the Kiekert deal last week. The company was founded in 1857 near Düsseldorf, Germany, and became the largest manufacturer of automotive door-lock systems. Its customers are GM, Ford, VW, BMW, and other automakers around the world. But now a Chinese company bought Kiekert, the sign of a sea change.
Read more...By Richard Smith, spelunker of the Web. We started Robert Cowley’s web bio here and this is the second installment. We will be in Mayfair, London, or on the Gold Coast of Australia, and the story involves a dead Daily Mail journalist, a great racing driver, and a bad racing driver: a very bad one, […]
Read more...By Wolf Richter, San Francisco based executive, entrepreneur, start up specialist, and author, with extensive international work experience, who writes at Testosterone Pit.
As some readers have pointed out, there was a major problem in my last post, Deep Trouble at the Core of the Eurozone. I thank all commenters who criticized or defended my post, and I apologize for the errors it contained.
Read more...A corollary to Upton Sinclair’s famous saying, “It is difficult to get a man to understand something if his salary depends on his not understanding it” is “People promote ideas that help them secure or preserve a privileged position on the totem pole.”
A glaring example of these observations came in an op ed in the Sunday New York Times by Steve Rattner, former Lazard mergers & acquisition partner, later head of the private equity firm, Quadrangle Partners. He is best known as the chief negotiator in the auto bailouts (and he was criticized for not involving any auto industry experts). He paid $10 million to settle a kickbacks investigation and agreed not to work for a public pension fund in any role for five years. I happened to see Rattner on a panel at a Financial Times conference earlier this week and he elaborated on some of the themes in this piece, “Let’s Admit It: Globalization Has Losers,” which reader Brett asked me to debunk line by line. I’ll spare you and focus just on the most critical and bald-facedly dishonest bits.
Read more...By Matt Stoller, a fellow at the Roosevelt Institute. His Twitter feed is http://www.twitter.com/matthewstoller.
Today, the city of Providence, Rhode Island sent out layoff notices to every single teacher in the city. Every single one of them. If you want to understand why this is happening, why wages in the US keep getting cut, this chart tells the story. 
That’s the number of strikes since 1947. What you’ll notice is that people in America just don’t strike anymore. Why? Well, their jobs have been shipped off to factory countries, their unions have been broken, and their salaries until recently have been supplemented by credit. It’s part of a giant labor arbitrage game, that the Federal Reserve and elites in both parties are happy to play. Strike, and you’re fired. Don’t strike, and your pay is probably going to be cut. Don’t like it? Sorry, we can open a plant abroad. And we have institutions, like the IMF, to make sure that we get goods from those factory-countries, and get them cheap.
Read more...Yves here. While Quinn has a deliberately (some might say overly) provocative style and I quibble with some of his supporting arguments, his overarching observation, that America is wedded to an economic model past its sell by date, and that model has damaging social and political consequences, is one I believe will resonate with many […]
Read more...By Marshall Auerback, a portfolio strategist .hedge fund manager, and Roosevelt Institute Senior Fellow My friend, Yves Smith, has posed the question as to why there is no political outlet for the anger on the left. In other words, where are today’s Huey Longs when you need them? It’s become patently obvious to anybody with […]
Read more...When you start advocating Federally backed “moon shots” as a way to compensate for the shortcomings of American management, you know you are in deep doo doo. Tom Friedman has a characteristically breathless article at at the New York Times arguing America better get off its duff because China is very serious about electric cars: […]
Read more...GM, with $75 bn in cash in reserves, bought AmeriCredit, a small subprime lender, in an all cash deal for $3.5 bn. GM is also currently in bankruptcy. AmeriCredit, which is rated BB by Fitch, was put on watch by Fitch, after the deal announcement. Fitch is unsure whether the deal will help or hurt […]
Read more...Felix guessed how this Structured Finance issue pipeline would get sorted out, for the moment. Three not necessarily inconsistent takes on causes and effects: A neat way to embarrass the government. The rating agency logjam and the GM deal announced yesterday are closely related: if there’s one thing GM will think it still needs for […]
Read more...Regulators Hired by Toyota Helped Halt Investigations Bloomberg and Bursting Pipes Lead to a Legal Battle New York Times. Faulty financial products, faulty cars, faulty pipes….what next? IMF Tells Bankers to Rethink Inflation Wall Street Journal (hat tip reader Don B) The Myth of Efficiency James Kwak Welcome to boarded-up Britain: One in eight shops […]
Read more...By Edward Harrison of Credit Writedowns Yves is going to be in a light posting mode, so I will be posting some links and a few posts for your reading pleasure. The first one is an update to some thoughts that Yves had on GMAC on the 27th. By the way, where is Jesse? I […]
Read more...The numbers aren’t as impressive as AIG’s but the general premise is the same. The automaker’s financial service arm it asking for a third taxpayer-provided cash transfusion. Might help if someone stanched the bleeding first. But no, bleeding is part of the game plan. The reason for more dough to GMAC is so GM and […]
Read more...The US tonight imposed steep tariffs on tires, a move directed against Chinese imports. From the Wall Street Journal: The Obama administration will put steep import duties on Chinese passenger and light truck tires, responding to what the U.S. International Trade Commission determined to be a surge of Chinese tire exports that has rocked the […]
Read more...It looks like I am being proven wrong on this one. I was of the view that the GM bankruptcy could get bogged down in court, since it had many more parties who could protest the use of section 363 to expedite asset sales than Chrysler did, some of whom also appeared to have better […]
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