[tw]

Forces continue today to contribute to an economic downturn. The Pension Benefit Guaranty Corporation - a Federal government insurance company for Pension Funds - has announced a $22.8 billion shortage. A number that does not yet include the almost $3 billion default by Delphi onto the fund.

Again, we go to GM as a classic example of a company whose spread sheets mask a company in severe trouble. GM's products have long since been poor. One industry analyst recently pegged GM products at about $3,000 inferior to market standards. Of course, and contrary to GM's propaganda, the unions contribute only $650 per vehicle. GM products are that bad due to management. Even a chief designer is a graphics art student - not a hardware designer.

So what has GM been doing to mask their bad product line? Rick Wagoner's people were simply fudging the spread sheets to make the company look profitable. They shorted the Pension Funds and played other spread sheet tricks to claim profits that do not really exist.

Just like the S&L crisis of the 1980s, these spread sheet games to pretend GM makes good cars will eventually come out of your pocket. The PBGC deficient is just another way you will pay for GM that should have long been driven to bankruptcy - so that their bad management was removed.

GM buys companies, sucks out the profitable parts using cost controls, and then spins off the remnants. Delphi is just the latest example of these spread sheet games. Already GMs 2001 accounting games is under investigation. Meanwhile, the criminals will not be prosecuted. It’s simply a question of how big the retirement bonus will be for Rich Wagoner - a man who never worked in the product side of GM - and therefore was chosen over Louis Hughes as GM's top man. You will pay for his type as more large companies drop their pension funds into your lap - the PBGC that is already $23 billion in debit - a number that will only increase due to MBA management games with the spread sheets.

Notice the trends in that Dow Jones average chart. As a result of spead sheet games of the 1970s, higher oil prices, a war waged for reasons that were lies, etc; then the US did not see growth until about 1982. That growth was constant until about 2000 when a new president created same mistakes of the 1970s - including wild and uncontrolled government spending, masked by lies or spin, and not seen on this scale since Richard Nixon. This president even advocates torture and denies it.

Just more indications that the lurker should be protecting his financial positions. Prospects for a severe downturn are appearing.