Jay Walker’s Financial Traffic

I.O.U.S.A.: The Movie

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I could write a long text today rambling about why Hank Paulson should be left alone.  But professional day trader, Don Harrold is explaining it so well that frankly, I see no reason why I should.

I have been watching Mr. Harrold’s videos for quite some time.  I enjoy his no nonsense style and the only reason I don’t subscribe to the services he offers to day traders is because I trade forex exclusively.  I would recommend that everyone who enjoys reading Jay Walker’s Financial Traffic subscribes to Mr. Harrold’s free YouTube channel.

So without any further ramblings, watch Don Harrold explain why Hank Paulson should be left alone.

There is a lot to be learned from the United Kingdom’s auto industry.

The country has a rich automotive history.  It has brought us the Cooper Mini, the Jaguar, the Range and the Land Rover along with the objects of much people’s envy, the Rolls Royce and the Bentley.

All of these brands where purely British and where that nation’s pride and joy.

Things started to go bad in the late 60’s when British Leyland was organized and controlled most of the country’s automotive industry.  They got worse in the mid 70’s when British Leyland was partially nationalized.  British Leyland closed in 1986 and the different units where acquired by various groups.

Now we find Jaguar and Land Rover owned by India’s Tata Motors and Mini owned by BMW.  Even the Grand Daddy of all luxury cars, Rolls Royce is no longer under British control.

If you don’t see the parallel between the U.K’s car industry and the American one, you’re in for a rude awakening…

The auto industry bailout hasn’t passed…for now.  But it will be approved in one form or another.  And when it is, I challenge anyone to explain to me how it will be different from the nationalization of British Leyland.

General Motors, Ford and Chrysler are guilty of fear mongering.  GM said that over 10 million people would be out of work if they weren’t bailed out.

What is needed is for America to go back to entrepreneurship.  Nobody alive today remembers but there was a time in history when GM, Ford and Chrysler didn’t exist.  These companies came into existence because individuals like Alfred Sloan, Henry Ford and Walter Chrysler had the vision, the audacity and the courage to create something different.  In that era, that meant the creation of some method of transportation that was better than a horse.

The good folks at Tesla Motors seem to have a good idea.  They have the audacity and courage to create something different.  They are the first automotive start-up in America in over 50 years and in spite of the high price, they have a waiting list.  But we need more than one company.

If we want a car industry, we must have the audacity and the courage to create something different.  In America, something different is done as a last resort.  Fortunately, this is where America shines.

I have been hiding in a cave.

So many collapses, so many bailouts.  700 billion here, another few billions there.  An election.

Lots has changed since I wrote this.  Yet, somehow, because everything that has actually changed in the financial world was, in my eyes, predictable or at worst not that surprising, I feel like nothing has changed.

Recently, I had the pleasure to watch a very well done documentary called I.O.U.S.A.  It was disappointing to see that the movie had an audience of only 14…over two presentations.

For those who haven’t seen this movie, it’s a documentary that actually explains the American national debt and how it happened.  It’s not often that the words “interesting” and “accountant” appear in the same sentence.  But David Walker, former Comptroller General at the Government Accountability Office (the GAO), the guy who was for many years the top accountant in the country is interesting.

He’s interesting because of his no-nonsense attitude in how he explains how America lost it’s way.

The best selling movie last week end?  Madagascar: Escape 2 Africa.  I.O.U.S.A. was #86.

Escaping to Africa might be the solution to some, others will stick their heads in the sand.  I’m certain that just too many folks that went to Madagascar for a couple hours have problems directly related to what was explained in I.O.U.S.A.  Yet, the very same people wonder “what happened” when sitting on the curb next to the home they just got evicted from.  It tells a lot about a nation’s priorities.

So go to I.O.U.S.A.  Take your friends, take your partner.  I have gone to two presentations for a reason.  If someone you care about talks about the economy (and who isn’t nowadays?), show them that movie.

You won’t get rich from it.  But you will gain understanding.  That’s the first step towards wealth.