Here I Stand

Here I Stand

Wednesday, October 27, 2010

Reagan said it best

... Life is not so dear and peace not so sweet as to be purchased by the chains of slavery.

There are still we few out there who beleive it is better to die on our feet than live on our knees, that war may be an ugly thing, but it is not the ugliest thing. To paraphrase John Stuart Mill, we know that those cold and dispasionate souls who beleive nothing is worth fighting for will only be made and kept free through the efforts of better men than themselves.

And so, I give you, President Ronald Reagan:












Reagan - We Must Fight speech

Always remember than people sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.

Monday, October 25, 2010

General Motors IPO

Recently in the financial news, the IPO (Initial Public Offering) from General Motors has made quite the headline. Some argue that since GM took TARP money from the Federal Government, that this IPO is the American people buying up the debt that the company still owes to Washington – the debt that was already paid for by the American tax payer. Yes, I certainly see their point in this, but GM is already in the process of paying back the TARP funds, and this IPO is going to serve as capital for expanded growth. I recently spoke to a long time GM manager, and he is, understandably, very excited about the possibilities offered by this IPO. General Motors is one of the leading American green / hybrid car manufacturers, and the capital acquired from the IPO will go towards hiring new employees – everyone from engineers and managers to line workers, and funding new and expanding projects, like the Chevy Volt, a highly anticipated entirely electric car. The company is saving money with their new hires by putting them on contracts as opposed to full employee status – meaning good and competitive pay, for a specified project or period of time, but without the benefits and pensions (or union status) that the automotive industry had become known, and condemned, for over the past few decades. The biggest question in my mind, and that has been asked on CNBC and other financial news shows, is whether or not the $25+ price tag on the IPO shares is really worth it. This is a significant increase over past GM prices – even before the bankruptcy, and there is some question as to the actual value of this new stock offering. This will require a bit more research before I invest any of my own (currently non-existent) capital, but my initial feeling is that GM is a company that has adapted and overcome hardship and changes in both the economy and popular culture for the better part of a century. They are well managed and have a good foothold in the future of the auto industry – hybrid and electric cars – far more so than many of the other American auto manufacturers out there, and this IPO will facilitate a high rate of growth. Combine this with the emerging middle class in China, which is pining for American goods, to include cars, and the emerging potential in India (again with a preference for American imports) I think that though $25 a share is expensive for what it will yield this year or next year, this is the ground level of a growing project, which may have the endurance for a long and profitable run.