John Lounsbury
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Wall Street Breakfast: Must-Know News [View article]
1. Use of debt to create additional debt, rather than to finance means of production.
2. Lack of long-term planning and contingency planning.
3. The belief that desirable economic outcomes can be legislated in any way except by incentivizing entreprenurial effort.
4, Belief that self-interest in and of itself will, through competition (without regulation), automatically produce benefit for all.
Others may add to this list, but I'll stop for now.
Wall Street Breakfast: Must-Know News [View article]
The reason that GM was "forced" to abandon future planning for high oil prices was unions? Certainly that is part of the equation, but it is disingenuous not to recognize also that trying to maximize income statements quarter to quarter is a major factor in the lack of proper longer term strategy.
Maximizing quarterly income results works great when the existing strategy is good for the long haul but can lead to disaster when the current strategy is short-sighted.