Friday, November 16, 2012

"GM Is Alive" - "Hostess Twinkies And Osama Are Dead" But At Least You Won't Die From Heart Disease Because The "Economic Oppressor" Is Now Out Of Business

If someone told you that these types of events, transacted serially is how various "Post-Industrial" cities came to be as "cooler heads" failed to prevail - would it be too much for you to believe?

Yes - some other corporation will scoop up these iconic brands.
But we now have CORPORATE CONSOLIDATION - more power in the hands of fewer people.

While the END POINT of this consolidated power is often debated - why is it that the TRANSACTIONS that have lead up to this point seemingly forgotten?

For decades the proof of a companies profitability has been the inspection of the compensation in the "executive suite".   The health of General Motors was justified in this same way.  Despite the fact that the executive compensation in aggregate was in the hundreds of millions while the labor costs for tens of thousands of workers were in the billions - many people were appeased by the numbers that shows the expansion in the ratio between these two groups.    

(Notions of) FAIRNESS is not an "Economic" governance decision.  It will NOT keep the doors of a struggling company open.

Even though the Hostess Corporation had filed for bankruptcy, as proof that it was not "playing tricks" - some of its employees still believe that it was "holding out" - that there was still some money being hidden in the "Executive Washroom".

It is not possible for the Federal Government and Federal Reserve to use its "fiat currency" to inject "magic money" in to save Hostess and other "too big to fail" corporations.   The fiscal fortunes of this and other entities (including individuals and governments" is CONSTRUCTIVE FEEDBACK provided as to the general health of their "individual economies" which has to interact with other economic forces in the marketplace within which they operate.

The net result of all of this - including the US Federal debt is that Americans are attempting to retain a standard of living that the REAL economic output can no longer sustain.   The more that this gap is retained - ironically - the more likely that a catastrophic collapse will greet us in the future.

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