Archive for July 13th, 2009

Bankruptcy Watch – J.L. French

Monday, July 13th, 2009

Now that the Geithner GM plan to “take” the “good” GM assets has been brute forced through the bankruptcy courts, the companies owed money by the now worthless “Bad” GM will start all falling over.   J.L. French makes aluminum components for all of the “big 3”.

The account in the Detroit Free Press mentions that American Axle, another automotives parts suppplier in Detroit will also probably have to file bankruptcy.   And the dominoes keep falling…  along with the TOTUS…

It’s kind of hard to make cars without the parts.

Bankruptcy Watch – Sinclair Broadcasting

Monday, July 13th, 2009

According to the Baltimore MD Business Journal, Sinclair Broadcasting has filed an 8-K form (Material Event) stating that they may be forced to file Chapter 11. Sinclair used to be in the radio business, but sold that part of the company about 10 years ago. They operate 38 TV stations, and have been hard hit by the drop in TV advertising for automobiles.  

Not mentioned in the story is Sinclair was also the target of a boycott in 2004 for planning to run a TV show that showed Vietnam Hero Senator John “F” Kerry in an unfavorable light.

Are you stimulated yet?

Monday, July 13th, 2009

The Metro North transit system operates a feeder line using diesel equipment that runs from Bridgeport up to Waterbury.   The line was closed today for about a month for a project to replace 12,500 ties and replace a bridge crossing the river.  

The line used to be an important freight line, but as the smelting and armament businesses were put out of business, the freight traffic dried up.  The only remaining use of the line is this commuter train that runs back and forth.   Further north up the same track is a rail museum that runs excursions, and the tracks continue north to Torrington, where the tracks end.

So I’m thinking….  how big of a boondoggle is this?   Now I’m a guy who loves trains, but not stupid governments.   The roadbed from my casual looking appears  better maintained than most mainline freight lines.   So I start looking to see if there are any published ridership statistics for this line can come up with a cost per passenger for the project.

What I found was much more interesting.  

http://bobbyderailed.blogspot.com/feeds/posts/default

This person works as a conductor on that line, and has written some of his experiences.   The high level summary is the “regulars” on the line are mostly people going back and forth to Bridgeport to see their probation officer, methadone clinic or drug dealer.   It’s a real dose of reality, especially for those of you who think Connecticut is full of rich white people.  (This is not a “slam” of the blog writer – he seems like a very decent guy, just disturbed by what he sees every day)

The MTA doesn’t state whether or not this is a “stimulus” funded project, but that seems likely.   By the way, the MTA is perpetually broke. 

Another New York area transit agency that is part of the MTA – the Long Island Rail Road –  was coaching its retirees how to milk the Federal government, with virtually 100% of retirees claiming “job related disabilities” immediately after they retired.  [NY Times Video]. Part of why the scheme worked was that the RailRoad Retirement Board has no motivation to say “no”, and keeps their jobs by saying “Yes”.

Keep this in mind if you are considering that “Single Payer” health care coverage is a good idea.