Archived posting to the Leica Users Group, 2011/06/02
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]I remember doing International Harvester's demise as a case study - what killed the company was bad financial management, nothing to do with the products. It is a real cautionary tale, but the world forgets these lessons very fast. It was caused by a CEO, Archie McCardell, piling on debt in good times to boost earnings per share (EPS) by diversifying into unrelated areas, all for increasing the share price to maximize his bonus - encouraged by every Investment Bank in sight. The contrast was provided by John Deere, who raised equity in the good times, therefore protecting themselves against a market downturn in the future, in exchange for reduced EPS and consequently lower share price in the short term. I need not tell you which company was the darling of Wall Street at that time! Well, we know now which decision was correct, don't we? As is always the case in this sort of bungling - if the diversification drive had taken place with equity the company would probably have survived, though McCardell's bonus would not have - the workers are the ones who suffer, seldom the senior management. Remember this is a tale of the late 1970s and not 2008! Exactly the same problem caused the recent recession, only it was individual balance sheets that had sky high leverage, and not corporations - except the banks, of course, who did but were bailed out. Cheers Jayanand On Thu, Jun 2, 2011 at 1:28 PM, Chris Crawford <chris at chriscrawfordphoto.com > wrote: > http://chriscrawfordphoto.com/chris-details.php?prodId=474 > > I shot this a couple months ago with a 75mm f2.5 Color-Heliar CV lens on my > M6. > > > > -- > Chris Crawford > Fine Art Photography > Fort Wayne, Indiana > 260-486-2581 > > http://www.chriscrawfordphoto.com My portfolio > > http://blog.chriscrawfordphoto.com My latest work! > > http://www.facebook.com/pages/Christopher-Crawford/48229272798 > Become a fan on Facebook > > > _______________________________________________ > Leica Users Group. > See http://leica-users.org/mailman/listinfo/lug for more information >