Daily Archives: October 19, 2008

As Car Industry Fails, Detroit Class Warfare Loses It Power

Batmobile512Founded during The Great Depression, the UAW is now more than seventy years old. Henry Ford once supposedly said that the union would organize Ford (F) workers over his dead body. Ford is gone now. The company he founded may not be an independent enterprise much longer. Other players in the car company/union wars are also long gone. Walter Reuther, who became the head of the UAW in 1946 died in 1970. Jimmy Hoffa, the longtime head of the Teamsters, disappeared from the parking lot of a Detroit-area restaurant in 1975. Both were willing to press the case of their workers, even to the point of violence.

The war between the unions and The Big Three has lasted since Ford made his comment. There was some rapprochement when the Arab Oil Embargo crippled the industry in the early 1970s. But, unemployment in southeastern Michigan moved up to nearly 15% at the depth of the recessions in the mid-1970s and early 1980s. The union was anxious to claw back what it could for its members once the industry began to recover

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A Theory That Wells Fargo (WFC) Numbers Are Bogus (C)(JPM)(BAC)

R218533_855025Analysts often as about "earnings quality". How accurate are quarterly numbers? Are they being "managed" to make a company’s fortunes appear better than they actually are?

The question has come up in relationship to the last quarter reported by Wells Fargo (WFC).

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Cox Wants More Disclosure On Credit Default Swaps, Which He Should Have Asked For Years Ago

House

SEC Chairman Christopher Cox may go down in history as the worst person to ever run his agency. He has been flat-footed and tardy on almost every critical action that the SEC could have taken to effect or correct events which lead to the financial system’s meltdown. In particular, he did nothing to encourage the examination and regulation of mortgage-backed securities and the tremendous levels of leverage taken on by the largest banks and brokerages.

To prove that he can still be slow to ask for additional steps to help monitor the markets, Cox has called for more transparency and regulation of the huge credit default swaps market.

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