Pirates Hijack Ships & Auto Companies

“Pirates Hijack Saudi Supertanker”

Investors Business Daily – 19 Nov. 08

•    Put a Blackwater team on every ship. (Don)

Pirates who hijacked a Saudi supertanker now anchored it off Somalia’s coast, while the U.S. and other nations decided for now, not to intervene.  Filled with $100 mil in oil, it’s the largest merchant vessel ever seized.  Pirates took an Iranian Cargo ship Tue., the 7th vessel seized in 12 days.  Some shippers have said they’ll go round South Africa instead of via Egypt’s Suez Canal, citing piracy.

•    What they don’t tell you here – they have seized over 100 ships over the last two years. (Don)

Indian Frigate Sinks Pirate Ship

Investors Business Daily – 20 Nov. 08

The FIRST! – GOOD FOR INDIA! (Don)

The Indian warship INS Tabar sank a suspected pirate ship after a brief gunbattle in the Gulf of Aden, an area that has seen a surge in ship hijackings by Somalia-based gunmen.  Meanwhile, pirates succeeded in hijacking 2 more vessels in one of the world’s busiest shipping channels.  In the last week, pirates have captured 8 vessels, including a giant Saudi oil tanker.

Pulling Plug On GM Would Help Both Auto Industry And Michigan

IBD – John Tamny – 12 Nov. 08

Capital and jobs will continue to flee the state if GM is saved with the money of others.

Sectors reliant on government help are invariably weakened as opposed to strengthened.

Poorly run businesses find it hard to raise money.

Were GM a well-managed company, it would have no need to run to the federal government.

If there’s a defense of GM at this point, it has to do with dollar policy in this country that has made long-term planning very difficult. GM did relatively well when the dollar was strong due to lower gasoline prices that made its large vehicles very popular. But as GM presently seeks to create new, smaller models for a world allegedly running out of oil, a stronger dollar has driven down gasoline prices, which means its inventory might yet again not match future economic realities.

The complication there is that GM’s management has regularly advocated a weaker dollar, so the problem remains one of management clueless when it comes to understanding what makes the firm prosper.

In the end, the state of Michigan and the U.S. automobile sector are struggling not due to back luck, but precisely because they cling to a company that investors no longer value. And with GM shares near all-time lows, those with capital are stating loudly that so long as GM remains as is, the funds necessary for job creation will continue to flee.

So rather than waste precious capital in the naive hope of propping up that which investors don’t value, it’s essential to let GM fail. Only then will a necessary change of ownership occur;

“GM, FORD BEG, WARN END IS NEAR” – IBD 19 Nov.08

Here’s why we say – let the auto companies file bankruptcy: (Don)

example: A Ford assembly line worker – works 2 weeks with 2 weeks off.  –
but paid for 4 weeks – for not working.  Engine plant near Ann Arbor.

“Job bank” – employees (8000) get paid $105,000/year – for years.

“a radio personality in Ann Arbor talks about a Ford worker paid to teach the Guitar to auto workers.”