(04-17-2012 10:15 PM)NIU05 Wrote:  American management is OUTSTANDING. You do NOT have dominant world class enterprises in so many different unique industries without EXCELLENT management. i We have GREAT management in our companies. They survive despite the silliness that invades so much of our economy. I am referring to our horrendous energy policy and onerous cost of healthcare.

(04-18-2012 12:00 AM)aTxTIGER Wrote:  

(04-17-2012 10:15 PM)NIU05 Wrote:  American management is OUTSTANDING. You do NOT have dominant world class enterprises in so many different unique industries without EXCELLENT management. i We have GREAT management in our companies. They survive despite the silliness that invades so much of our economy. I am referring to our horrendous energy policy and onerous cost of healthcare.

I agree however the drive for short term goals at the hinderance of long term stability is rampant in way too many American companies.

Quote:While companies might not be able to lay off employees easily, they can cut their pay in half and reduce their hours. The government makes up half of the cut. Thus, employees get a 25% cut in pay, instead of being laid off. The government doesn’t have to pay unemployment compensation. Disruptions, morale problems, and dislocations that result from layoffs are mostly avoided. The company remains fully staffed with experienced people whose technical skills are up to date. As orders come in, hours and pay can be ratcheted up as needed without the expense and delays of having to hire and train new people.

So when the trillions that central banks printed during the financial crisis sloshed around the world and created demand in China and other developing nations—and eventually in the US and Europe—German companies were ready. Thus the miracle-like recovery from the abyss of the first quarter of 2009.

But now factory orders are plunging again—4.8% in November (reported January 6), nearly wiping out October’s surge of 5%. In September, they’d fallen 4.3%. In August, they were down 1.4%. In July, the were down 2.8%. In November, domestic orders eased 1.1%, orders from the Eurozone declined 4.1%, and ominously, orders from countries outside the Eurozone plummeted 10.3%.