Destroying American Jobs (ie Kodak)

[tw]

AT&T pioneered the transistor, Telstar, laser, Unix OS, advanced programming languages, telecommunications, cell phones, submarine optical communication, digital switching, and even what is now a standard option for all homes - telephone, internet, and broadcasting all on one cable. The so called "Triple Play". Instead, AT&T management either stifled the innovation, refused to upgrade, or simply sold off a crown jewel so that a money losing operation could claim a few more years of profit. Even the Bell Labs are owned by people more innovative - the French. Eventually all that was left was their wireless business. To avert bankruptcy, AT&T sold itself to Southwest Bell. Purchased mostly for its name.

General Motors played the same game for over 30 years. Selling or mortgaging everything to claim profits that really did not exist. Then blamed the government, economy, unions, Japanese, taxes, and anything else they could rather than admit business school graduates design bad cars. The Volt and Camaro being latest examples.

As paper becomes less desirable and popular (in books, newspapers, Postal service, business records, financial transactions, currency, etc), some companies would rather reinvent the paper printing industry. Why are so many once American institutions simply mortgaging themselves over the past 20 and 35 years rather than innovate? Major changes in how American business works and the resulting diminished productivity take that long to finally appear on spread sheets.

A company that invented the digital camera - and could not bother to profit from it - now only has patents left. Meanwhile, it stupidly thinks it will become profitable by making paper printers. Nobody is offering to buy their only remaining assets - patents.

From the Washington Post of 4 Jan 2012:

Wall Street Journal report says Kodak might file for bankruptcy in coming weeks
An uncomfortable suspicion that an icon of American business may have no future pushed investors to dump stock in Eastman Kodak Co. Wednesday.

The ailing photography pioneer's shares fell to a new all-time low after the Wall Street Journal reported that Kodak is preparing for a Chapter 11 filing "in the coming weeks" should it fail to sell a trove of 1,100 digital-imaging patents.

Analysts have said the patents could fetch $2 billion to $3 billion, but no takers have emerged since Kodak started shopping them around in July.

In November, the 131-year-old company said it could run out of cash in a year if it didn't sell the patents. Even as it looked to a future rooted in its emerging printer business, the company was reporting a third-quarter loss of $222 million - its ninth quarterly loss in three years - and it said its cash reserves had fallen 10 percent in three months.

A company with management educated by the same people who educated George Jr will even deny they are harming America. Eventually, even Wall Street must stop denying reality. After all, any company foolishly turning to paper as its future can only be daft.

Kodak was kept alive by a Wall Street that will lend to buggy whip industries rather than to innovative ones. It is good for Kodak to sell its last remaining asset so that Kodak can claim a few more years of profits? Another money game so popular since 1980. A patriotic Wall Street would have demanded that Kodak get into some innovative business.

Even digital cameras (first developed and then all but abandoned by Kodak) are no longer a growth industry.

The New York Stock Exchange warned Kodak this week that its shares would be "delisted" - or dropped from the exchange's listings - if they stay below $1 for six more months.

Eastman Kodak was selling on 4 Jan 'after hours' for $0.44 per share. Less than half of what the stock sold for over 100 years ago.

Of course, someone might fire their president. It took Obama to fire GM's only problem. But Wall Street, that could, will only enrich themselves at the expense of workers and the nation. Money can be made by prolonging existing decay. It is how Wall Street now works. Massive profits at the expense of workers and all other Americans.

Kodak's only future is in a business that has now started a slow decline. Is no longer a growth industry. What was clearly a growth industry 30 years ago is now following telegraphs, tape recorders, and vacuum tubes.