Tuesday, July 8, 2008

How to save GM?

GM is close to doomed. The stock is down around $10, which makes the entire company, once the biggest corporation in the world, worth only $5 billion. Sales are down, they don't have cars that people want to buy, the price of gas has destroyed demand for SUV's and pickup trucks. They will burn through the rest of their cash in a year or so.
The Wall St Journal opined that only the development of desirable bread and butter sedans would save them. There's something to that, if you are going to be a car company, you have to have cars that people like. But better is to invent a new car type. Lee Iacocca did this repeatedly in his career. He fathered the Mustang, the K cars, the the minivan. GM needs someone like Iacocca who has a feel for the market and creates things that sell. Rick Waggoner ain't that guy, he barely knows where the ignition key goes, let alone what makes a hot selling car.
GM ought to try making a two seat micro Corvette. Do a very small, low cost, two seat sports car. Figure out some way to get surfboards, snowboards or skis into it, or onto it. A roof rack, a fold down rear window , a pass through from the trunk to the cockpit, something. Make it light, offer a 5 speed manual, a 4 cylinder engine, get the gas milege up over 30, get the front rear weight distribution 50-50, give it the pizazz of the 'Vette at a third the price point.
Second new car, the micro hauler. A car in the Cobalt class that somehow allows the owner to get 4*8 sheet goods back from the lumber yard or furniture back from the auction. Doesn't have to seat more than two, but must handle the cargo, and be cheaper and less thirsty than a minivan.

Real Solar Energy (as opposed to imaginary solar)

The don't drill, no nukes, conservationists get all excited about "Solar" with out ever explaining what "Solar" is. For most of us, in the lower 48, real solar energy comes from home heating or cooling. Shining in through windows the sun pours a lot of heat into a house. In the winter, this is all to the good. In the summer, it makes the air conditioner draw more expensive electricity. Every window needs a sun shade, positioned to let the low winter sun shine in, and shade the window from the high summer sun. The sunshade needs no moving parts, and in fact properly designed eaves do the job very well.
Here in New Hampshire, I have enough solar gain through the windows that my furnace stays off during the winter day. With the solar gain, my furnace gets through the winter on about the same amount of fuel as my car uses all year. Without the solar gain, my furnace oil costs might double.
Home buyers ought to check the sunshade/eaves/awnings situation on the windows before falling in love with the house. In heating country, a good house faces south to get more sun. In air conditioning country, the house ought to face north for more shade. If buyers cared about these things then builders would furnish them.
The technology of building to take advantage of the sun has been well understood since the days of the Roman Empire. Where as solar electric technology still lacks decent batteries to give you electric lights after the sun goes down.

Sunday, July 6, 2008

So where do the pundits stand on Iraq?

Listened to the Sunday pundits, Stephanopolis on ABC. The talking heads spent a lot of time explaining how Barack Obama was changing, or must change, his position on Iraq. Last firm word from Obama himself, broadcast on TV a couple a days ago, was, (paraphrased) "I will withdraw the Army from Iraq as soon as possible (ASAP)".
It's pretty clear the talking heads. even democratic talking heads, are calling for Obama to change his policy, and keep enough troops in Iraq to win the war. So far, I haven't heard Obama himself say this, but it's clear the pundits want him to.

Words of the Weasel, Part 7

"Flip Flop" a derogatory term applied to any any policy statement made by any politician. Rather than summarize the policy statement, and perhaps muster reasons for and against it, the reporters simply brand the statement a "flip flop", implying the speaker is a slippery customer who has gone back on his sworn word.
This shows ignorance, and partisan bias on the reporters part. Few reporters actually understand policy issues. Or any other issues for that matter. Most reporters are political partisans who view their job as supporting their politicians and badmouthing the other side's politicians. So, when at a loss for anything real to say (the usual case) reporters simply brand the policy statement a "flip flop".
Question: would you like a political leader so narrow minded that he never changed his mind on anything?


Barack Obama called for "service" from high school and college students. Quoted in the Rocky Mountain News.

"Just as we teach math and writing, arts and athletics, we need to teach young Americans to take citizenship seriously. Study after study shows that students who serve do better in school, are more likely to go to college, and more likely to maintain that service as adults. So when I'm President, I will set a goal for all American middle and high school students to perform 50 hours of service a year, and for all college students to perform 100 hours of service a year. This means that by the time you graduate college, you'll have done 17 weeks of service."

Service? Such as providing food, fuel, transportation, communication, manufactured goods, raw materials and entertainment to society? People who perform these real services hold "jobs" and they even get paid to do so. Is Mr. Obama suggesting students hold part time jobs? Or join the Armed Services part time?

In my youth I participated in American Friends Service Committee work projects in Philadelphia. At the time it seemed like a worthy cause, but looking back on it, I doubt that anything we did on work weekends was as helpful as real paying jobs for those people would have been.

Real service is a paying job.




Thursday, July 3, 2008

Federal Flood Insurance

Floods are different from house fires. The chance of a house fire is about the same for every house in the country. Thus the premiums of the many go to make the few fire victims whole again. Everyone buys fire insurance and thus there is enough money to pay out the claims. Floods are different. Property too close to the water and too low is the only property liable to flooding. Therefore, only the few on the flood plains buy flood insurance, and sooner or later, they all have losses. Commercial insurance companies figured this out many years ago and now refuse to offer flood coverage.
A great cry went up from all the waterfront property owners. Congress critters heard the cry and Uncle Sam began offering flood insurance to all comers. Despite hefty premiums, federal flood insurance racks up heavy losses to the taxpayer. The program is really a taxpayer subsidy to waterfront home owners. Availability of flood insurance has subsidized a lot of construction in flood prone areas that should not have been built in, and paid for the inevitable rebuilding after the predictable flood.
As a taxpayer I see no reason for my tax dollars to pay people who build houses in flood prone locations. Every one would be better off building on higher ground, of which there is an enormous amount. No body needs to build on the river bank. If people want to build there, fine, but I don't want to be taxed for it.
A new flood insurance bill is floating thru the Congress at this very minute. If it is impossible to vote it down, how about limiting the payout to ONE flood. The flood victim gets paid off, but his flood insurance is canceled, and the site goes on a list of "too flood prone to insure" properties. If the owner rebuilds on the same site, it is at his risk, not mine. It's a free country, and people are free to build where ever they want. But I shouldn't have to pay for other peoples risky decisions.

Wednesday, July 2, 2008

Iraq casualties less than Afghanistan casualties

Looks like peace is breaking out in Iraq. US casualties have dropped below those in Afghanistan. Ever trustworthy MSM imply that Afghanistan is getting worse, although they don't bother to supply any numbers to support their viewpoint. Is the glass half full or half empty?