Monday, January 16, 2012

Isn't a Turn Around exactly what the US needs/requires?

I am not a big fan of Mitt Romney, but I am a big fan of capitalism simply because it works.  It works by rewarding those who take risk and survive, it penalizes those with bad unsustainable ideas.  If there were ever an organization that is on the brink of collapse, it is the U. S. Government.

Kudos to Kudlow for this brilliant piece!  

Isn't a Bainful Turnaround What America Needs?

By Larry Kudlow

There's a very troubled company out there called U.S. Government Inc. It's teetering on the edge of bankruptcy. And it badly needs to be taken over and turned around. It probably even needs the services of a good private-equity firm, with plenty of experience and a reasonably good track record in downsizing, modernizing, shrinking staff and making substantial changes in management. Yes, layoffs will be a necessary part of the restructuring.
A quick look at the income statement of this troubled firm tells the story. Just in the past year (FY 2011), the firm spent $3.7 trillion, but took in only $2.2 trillion in sales revenues. Hence its deficit came to $1.5 trillion.
Just in the first three months of the new year (FY 2012), the firm's troubles continued. Outlays for all purposes came in at $874 billion, but income was only $554 billion. So the shortfall was $320 billion. No hope of a self-imposed turnaround here. Indeed, both the senior management and the board of directors show no signs of making major changes to their business strategy.


Willie P
A common sense thinking guy from flyover country!




No comments:

Post a Comment