Wednesday, November 19, 2008

Mixed messages

Thumbs up or down for GM?

It seemed like a strange combination on the same page of the Business Section in a national newspaper.

All the headlines were about GM and the risk of bankruptcy. One of America's largest and most important corporations in dire straits because of the economic circumstances. Should they get bailed out by the US treasury? Something must be done to save them and all the jobs that depend on GM.

And across the bottom of the same page a full colour ad for the new Cadillac CTS with 556 horsepower for zero to sixty in 3.9 seconds at only $68,500. Just what we need for difficult times.

It seems to me that one message explained the other.

Bad management leads to bad results and the free market economy will help to decide who consumers (i.e. taxpayers) should support.

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