Financial Guru Who Predicted the Crisis Warns of a New Financial Shock
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| Med Yones |
According to Med Yones, “The government policies are damaging the US financial future. The government bailed out General Motors (GM) and gave them $20B, a month later GM declared bankruptcy. GM assets with the $20B bailout are $82B and their debt is $172B, so their net equity is negative $90 Billion. Recently, the US government announced that they will invest an additional $30B to get 60% of GM, in other words they will pay $30 Billion to buy $54 Billion of debt. What investor in his right mind would pay money to buy liabilities? How does that help the economy, or tax payers’ money? From an economic stand point the decision is a big failure; The ABCs of finance teach us to divest our failing investment (cut our losses) and invest in the growing industries that generate revenues and create jobs. You do not invest in losing business to keep jobs, you let the bad business fail, and create jobs by investing the money in new competitive and sustainable industries. The government could re-allocate the lost auto manufacturing jobs to electric car productions, wind energy production and several other industries, at least the invested money will reduce the US energy bill going forward” – said Med Yones, the President of the institute.
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International Institute of Management (IIM) is a business strategy think tank based in Las Vegas, NV. IIM has 41 universities and research partners in 16 countries. IIM leverages a global knowledge network to provide government and business leaders with the latest and most advanced business strategies and policies.
About Med Yones
Mr. Yones has been called the financial guru due to the accuracy of his financial predictions and their timing. He is quoted in worldwide financial media on the topic. To learn more about the unfolding crisis you can visit the original financial predictions report for 2007-2017 at: www.iim-edu.org/u.s.economyrisks/
The updated 2010-2020 economic report will be available online in July/August 2009 at the CEO Quarterly Magazine website www.ceoqmagazine.com/
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