Gloom, Doom, or Boom? Finance and Economics

[AzariLoveIran]

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[monster_gardener]

[Milo]

Outsourcing finally coming home to roost?

In a late January appearance at Seattle University, Boeing Commercial Airplanes Chief Jim Albaugh talked about the lessons learned from the disastrous three years of delays on the 787 Dreamliner.

One bracing lesson that Albaugh was unusually candid about: the 787's global outsourcing strategy — specifically intended to slash Boeing's costs — backfired completely.

"We spent a lot more money in trying to recover than we ever would have spent if we'd tried to keep the key technologies closer to home," Albaugh told his large audience of students and faculty.

Boeing was forced to compensate, support or buy out the partners it brought in to share the cost of the new jet's development, and now bears the brunt of additional costs due to the delays.

Some Wall Street analysts estimate those added costs at between $12 billion and $18 billion, on top of the $5 billion Boeing originally planned to invest.

There's more, including the engineer who predicted everything; they still refuse to take his advice!

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[Mr. Perfect]

Well there is undoubtedly some truth to this contention from Boeing, but as far as Boeing is concerned one must always keep in mind they are the excuse making king of all business, and the internal motto is why hire two people to do the job of one when you can hire three.

They are the lead boned flying elephant that continues to defy gravity for no good reason.

[Milo]

[Mr. Perfect]

Long ago my company did some contracting with Boeing and it was the only thing that ever happened to me that shook my faith that free enterprise was the most efficient and reasonable method for delivering goods and services. Near the end I was longing for a government gig so that I could work with engaged, motivated people that responded rationally to incentives.

[Demon of Undoing]

Boeing is the worst of both worlds , a corporate / government hybrid.

[Milo]

I wonder though, are the outsourcing issues starting to 'come home to roost'?

[Colonel Sun]

The late Matt Simmons was, I think, the first to point this out.

[Simple Minded]

[Milo]

[Colonel Sun]

[Colonel Sun]

Similar to

[AzariLoveIran]

[Simple Minded]

[Alph]

[Endovelico]

[I am ST]

[Pantagruel]

A world where it is thinkable to convert food crops into fuel for cars, deserves to face disaster.

This is special pleading: all economic production employs land, labor, material and capital that might otherwise have been used to furnish the miserable many with the requisites of life.

[monster_gardener]

[skyhook77sfg]

speaking of problems:



chapter 5 of the Stockholm International Peace Research Institute (SIPRI)’s 2010 Year Book



WORLDWIDE MILITARY EXPENDITURES

The USA is responsible for 46.5 per cent of the world total, distantly followed by the China (6.6% of world share), France (4.2%), UK (3.8%), and Russia (3.5%):


THE HERD OF ELEPHANTS IN THE ROOM BUT NOT IN US POLITICAL DISCUSSIONS RE SYSTEMIC FINANCIAL FAILURES, POSSIBLE SOVEREIGN BANKRUPTCY....
and oh yes decline in real disposable incomes for 90% of citizens, 15 to 20% real unemployement/underemployment but record income growth for top 1% and record corporate cash in the till.



WHO SAYS YOU CANT FOOL ALL THE PEOPLE ALL THE TIME...

..the rulers of the exchange of mankind's goods have failed through their own stubbornness and their own incompetence, have admitted their failures and abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men.

True, they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit, they have proposed only the lending of more money.


FDR 1933


CC FORMER CHAIRMAN PAULSON, GOLDMAN SACHS

[AzariLoveIran]

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[AzariLoveIran]

[Colonel Sun]

[Colonel Sun]