Friday, June 5, 2009

How Hard Can It Be?

This is the longest we have gone between blog posts since its debut three months ago. And although we may not add content on a daily basis, we have found that our blog has proven itself to be a valuable, and appreciated, part of our ongoing client communication efforts. I have had many clients tell me that they enjoy reading our blog and find it informative. Thank you for your feedback, and please feel free to suggest topics for future posts.

We will continue to disseminate important information directly to clients through e-mail and phone. However, I can confidently say that our newsletter has been permanently retired. This blog is a far more timely and informal way to communicate the type information that used to go into our newsletter, not to mention all the trees we are saving!

I picked a heck of a week to be tardy in making my blog post. One of the most significant events in recent history occurred as General Motors went into bankruptcy, and the stock market went up! There was a time when America believed that "What’s good for the country is good for General Motors, and vice versa". I guess that turned out to be a true statement. It was good for GM to go into Chapter 11, and that was good for the US economy. Only through the mechanisms available in Chapter 11 could GM possibly return to being a profitable company.

I know that it is really a pseudo-bankruptcy, since Uncle Sam in putting up a lot of cash to make the deal work. The thought of our favorite Uncle running a car business is not that reassuring...

Look at what the benevolent Barney Frank did yesterday. I will make no prediction that GM will succeed in re-inventing itself. My guess is that they will fail, and we the taxpayers will waste a lot of money. That said, at least the Obama administration forced the company into Chapter 11, which is probably the best choice, considering the bad choices available to them.