LostPatrol (and I mean lost) - you should read the whole story on the front page of today's business section. It actually explains the whole trip, the probability assigned to each opportunity, and what came out of it.
This column makes one false assumption - that China's economy is still as reliant on exports as it was in 1995. Its not. Look at its GDP thus far this year...its at 9% and holding steady. Granted their stimulus is propping up some of that growth, and the growth is occurring in cities to the west, not the traditional east and south. But domestic consumption is still remaining strong. And unlike the US, domestic consumption (as least consumer) is not credit-driven.
So thus remains the U.S.'s problem - we rely on China to purchase our treasuries, and every day China becomes less reliant on the US for its economic growth. China still has problems, like an archaic banking sector that is hiding alot of bad loans under the rug. But in a trade war, China can walk away feeling little pain.
A "net loss" vs. cash flow are 2 different things entirely. If I heard correctly, the company generated positive cash flow this past quarter - effectively more money came into GM then went out. A net loss can still occur when you have non-cash costs associated with items such as restructuring costs, changes in inventory accounting, etc.
I just got back from Asia where I saw Chevy Cruzes on the road. They are sharp cars that look and feel global - like Honda Civics do. Congrats to GM, and lets hope for a great success.
I must respectfully disagree with your article. When Mayor Williams, Tim Ryan, and/or Gov Strickland makes a call, visits the company, or even writes a letter, its done in the name of economic development of the limited area they represent.
But a president is a different matter. For one, the company has stated publicly that Houston is still in the running. If that is the case, should a president pitch for one area over the other? Sure Youngstown has been harder hit over the decades, but Houston is a city that had a shock from absorbing a significant population from Hurricane Katrina. Should Obama favor us over Houston? It isnt presidential.
But equally as important (if not more so), when Obama makes the call it becomes a political issue. This is a business issue. A decision needs to be made by the board based on economic variables that impact the stakeholders (not just shareholders) of the company. And, in realpolitik terms, Sarkozy and Obama do not seem to be warm and fuzzy for each other. So do you introduce a risk element with Obama calling? Absolutely.
Let the local politicians do their thing (subtly at that). Let the board vote as they should.
Good post Tyler. I have been wrestling with this negativity that I have found since I returned back to Youngstown (not just the Vindy but an overall skepticism towards projects, accomplishments, and ideas. In Economic Development, I hear alot about people ripping on ideas before they had a chance to reach a logical conclusion. For example, some people dismiss that idea of an indoor race track a few years ago as stupid just from the sound of it, and not after an informed analysis of whether its justified to support it.
The area cant grow if there is no risk taking. There will be no risk taking if we as an area collectively assault the new. Some senior at YSU took an initiative on urban planning? Good for him/her. The city wants to hire that person? Sounds good to me...fresh minds / fresh ideas.
What you reported about the way that it was reported in the Vindy sounds a little like healthy skepticism run out of control. David Skolnick has seemed pretty first rate to me, but even the best sometimes have a bias they may not know about.
While I dont know enough about the writing of Issue 3, I think its a blessing that it passed and Ytown does not get a casino (I have changed my mind on this stance). Youngstown doesnt need a casino. Let the other cities have the benefit, and the COST of running a casino. That includes the associated criminal aspect. I am not saying casinos are bad, but the US model (big, ugly, and loud) doesnt attract what Youngstown needs to attract (I do like many cities in the world that have small snazzy casinos in high end hotels- I feel like Bond, James Bond :).
Youngstown, and the state, will get additional tax revenue. That is needed. I dont think it will be as high as estimates are - we did come to the casino party too late. But lets use those revenues in a way that rebuilds Ytown like we should. Neighborhood redevelopment, small business incubator, cultural enhancement.
I'm really curious UnionForever, where do you get your logic? Why would a Chamber of Commerce be in favor of sending jobs overseas? Doesnt a chamber of commerce live and die by the health of their members? And arent most members of Chambers small to medium businesses? So why would a Chamber want to send jobs to China and hurt the community?? Help me out here.
Posted on November 19 at 4:19 a.m.
LostPatrol (and I mean lost) - you should read the whole story on the front page of today's business section. It actually explains the whole trip, the probability assigned to each opportunity, and what came out of it.
Posted on November 18 at 3:29 a.m.
This column makes one false assumption - that China's economy is still as reliant on exports as it was in 1995. Its not. Look at its GDP thus far this year...its at 9% and holding steady. Granted their stimulus is propping up some of that growth, and the growth is occurring in cities to the west, not the traditional east and south. But domestic consumption is still remaining strong. And unlike the US, domestic consumption (as least consumer) is not credit-driven.
So thus remains the U.S.'s problem - we rely on China to purchase our treasuries, and every day China becomes less reliant on the US for its economic growth. China still has problems, like an archaic banking sector that is hiding alot of bad loans under the rug. But in a trade war, China can walk away feeling little pain.
Posted on November 16 at 11:38 a.m.
Candy -
A "net loss" vs. cash flow are 2 different things entirely. If I heard correctly, the company generated positive cash flow this past quarter - effectively more money came into GM then went out. A net loss can still occur when you have non-cash costs associated with items such as restructuring costs, changes in inventory accounting, etc.
I just got back from Asia where I saw Chevy Cruzes on the road. They are sharp cars that look and feel global - like Honda Civics do. Congrats to GM, and lets hope for a great success.
Posted on November 15 at 2:22 a.m.
Bertram -
I must respectfully disagree with your article. When Mayor Williams, Tim Ryan, and/or Gov Strickland makes a call, visits the company, or even writes a letter, its done in the name of economic development of the limited area they represent.
But a president is a different matter. For one, the company has stated publicly that Houston is still in the running. If that is the case, should a president pitch for one area over the other? Sure Youngstown has been harder hit over the decades, but Houston is a city that had a shock from absorbing a significant population from Hurricane Katrina. Should Obama favor us over Houston? It isnt presidential.
But equally as important (if not more so), when Obama makes the call it becomes a political issue. This is a business issue. A decision needs to be made by the board based on economic variables that impact the stakeholders (not just shareholders) of the company. And, in realpolitik terms, Sarkozy and Obama do not seem to be warm and fuzzy for each other. So do you introduce a risk element with Obama calling? Absolutely.
Let the local politicians do their thing (subtly at that). Let the board vote as they should.
Posted on November 12 at 10:48 a.m.
Good post Tyler. I have been wrestling with this negativity that I have found since I returned back to Youngstown (not just the Vindy but an overall skepticism towards projects, accomplishments, and ideas. In Economic Development, I hear alot about people ripping on ideas before they had a chance to reach a logical conclusion. For example, some people dismiss that idea of an indoor race track a few years ago as stupid just from the sound of it, and not after an informed analysis of whether its justified to support it.
The area cant grow if there is no risk taking. There will be no risk taking if we as an area collectively assault the new. Some senior at YSU took an initiative on urban planning? Good for him/her. The city wants to hire that person? Sounds good to me...fresh minds / fresh ideas.
What you reported about the way that it was reported in the Vindy sounds a little like healthy skepticism run out of control. David Skolnick has seemed pretty first rate to me, but even the best sometimes have a bias they may not know about.
Posted on November 4 at 6:29 p.m.
While I dont know enough about the writing of Issue 3, I think its a blessing that it passed and Ytown does not get a casino (I have changed my mind on this stance). Youngstown doesnt need a casino. Let the other cities have the benefit, and the COST of running a casino. That includes the associated criminal aspect. I am not saying casinos are bad, but the US model (big, ugly, and loud) doesnt attract what Youngstown needs to attract (I do like many cities in the world that have small snazzy casinos in high end hotels- I feel like Bond, James Bond :).
Youngstown, and the state, will get additional tax revenue. That is needed. I dont think it will be as high as estimates are - we did come to the casino party too late. But lets use those revenues in a way that rebuilds Ytown like we should. Neighborhood redevelopment, small business incubator, cultural enhancement.
Posted on October 30 at 8:08 p.m.
I'm really curious UnionForever, where do you get your logic? Why would a Chamber of Commerce be in favor of sending jobs overseas? Doesnt a chamber of commerce live and die by the health of their members? And arent most members of Chambers small to medium businesses? So why would a Chamber want to send jobs to China and hurt the community?? Help me out here.
Posted on October 28 at 11:42 a.m.
My deepest sympathies to the family. This is truly sad.
Posted on October 28 at 9:46 a.m.
Could It Be - you said it perfectly. The Park is such an underutilized asset in this Valley. We must preserve it and passing such a levy is crucial!
Posted on October 23 at 7:56 a.m.
My condolences to the family... a very sad loss.