Now that the rescue/bail out of the big 3 automakers has been completed by President Bush, the Fed and the Treasury Department (with the support of President-Elect Obama), I would like to give you all some of my views on what has been said and is still being said, about this industry, it’s problems and it’s prospects. Because of my 25 years experience in this industry, I know a few things that many of those talking heads on TV don’t. It drives me crazy when someone pontificates with such surety about what went wrong and what is needed to go right, while their only experience with the car business is that they bought a car once. Please find my observations and comments below.

First, the Myths:

Myth #1: Domestic automakers are in trouble because they build poor quality cars – They used to. But so did the Japanese manufacturers in the 60s. But now quality in the car business is a price of admission and there is near quality parity among all manufacturers selling cars in the US market. While JD Power always ranks a first place and a last place, the difference between that first and last is much less than it used to be and in… Read More

I have known George Plescia and Bonnie Garcia (pictured below to the right, with the Governor) for many years. Both are great people and both are very capable. Both of them, during their six years in the State Assembly, were quite articulate about the need to cut state spending (rather prescient given our current woes, don’t you think?). I recall Plescia (pictured below, left), when he was Assembly Republican Leader, calling for the Governor to "dust off" the recommendations of the California Performance Review and to start implementing them.

Earlier this week I read on the Sacramento Bee’s Capitol Alert blog that George and Bonnie had taken appointments from the Governor to serve as members of the Unemployment Insurance Appeals Board. This is one of those low-profile commissions where the appointees (hand picked by the Governor, Speaker and Senate… Read More

The DC based Dem public affairs firm of Conklin Scott has compiled the unofficial list of events in the DC Metro Area surrounding the history making Inaugural on January 20th.

Some of the more interesting events include the Hip Hop Caucus pre-Inaugural concert on Saturday, the17th. On Sunday the 18th the Political Action Committee by Latinas for Latinas celebration at Rosa Mexican Restaurant.

Also on Sunday at Ohev Shalom, the National Synagogue will hold the Jewish Ball. I don’t think the President-elect will be there but they are going to have "Paul Shapiro’s Ribs & Brisket".

On Monday the 19th the Arab American Institute will host a ball that will feature "famous comedians". Are there any Arab comedians?

The Busboy and Poets & the National Postal Museum ball is also Monday where they claim they will have the largest group of peace activists gathering on Inauguration Day without a protest. Does that mean they will be wearing deodorant?

Click here to… Read More

Good Samaritans could get some much needed protection if State Senator John Benoit’s SB39 passes.

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This morning at 11am, I will be at a press conference being headed up by the Howard Jarvis Taxpayers Association, where a group of us are filing a lawsuit today against the illegal action of the state legislature in allowing billions of dollars in potential new tax increases to be passed out of the State Senate and the State Assembly without the 2/3rds vote required under the State Constitution. Joining HJTA and the FlashReport in filing this suit are over 40 State Legislators (Republicans all, of course), the National Federation of Independent Business, Americans for Prosperity, Insurance Commissioner Steve Poizner, and KFI radio talk show hosts John Kobylt and Ken Chiampou.

As followers of Golden State politics know, in response to the reasonable and strong position of legislative Republicans that after increasing state spending by over 40% in just four years, our state’s fiscal crisis should not be resolved by punishing Californians and damaging the economy with new tax increases. Legislative Democrats cooked up a scheme to pass billions of dollars in new taxes without any GOP votes… Read More

This morning at 11am, I will be at a press conference being headed up by the Howard Jarvis Taxpayers Association, where a group of us are filing a lawsuit today against the illegal action of the state legislature in allowing billions of dollars in potential new tax increases to be passed out of the State Senate and the State Assembly without the 2/3rds vote required under the State Constitution. Joining HJTA and the FlashReport in filing this suit are over 40 State Legislators (Republicans all, of course), the National Federation of Independent Business, Americans for Prosperity, Insurance Commissioner Steve Poizner, and KFI radio talk show hosts John Kobylt and Ken Chiampou.

As followers of Golden State politics know, in response to the reasonable and strong position of legislative Republicans that after increasing state spending by over 40% in just four years, our state’s fiscal crisis should not be resolved by punishing Californians and damaging the economy with new tax increases. Legislative Democrats cooked up a scheme to pass billions of dollars in new taxes without any GOP votes trying to use some legal… Read More

Proof that gossip is just that: yesterday I heard the opposite was true, today the financial press has it that Ebay star and ubiquitous McCain spokeswoman Meg Whitman is in the race for California Governor.

The Wall Street Journal blogged on it here, wrote on it here in today’s paper; and the Financial Times has it here.

More later.… Read More

When it comes to this year’s California state budget, there’s really only one question that matters: what’s going to be the price for a tax increase?

Let’s pretend that we can fast-forward past the next few weeks — or several months — of budget foreplay. Let’s assume that the Democratic scheme to pass a tax increase by majority vote doesn’t work, which means that some Republican legislative support will be necessary. Let’s look into the future toward that day when the California state legislature passes a budget by a two-thirds margin for Governor Schwarzenegger to sign.

Assembly Republican Leader Mike Villines has hinted that a package of tax and regulatory incentives that could improve the state’s business climate could be part of a tradeoff for some revenue increases. Because he was careful not to promise such an exchange, Villines was roasted by the state’s mainstream media for intransigence. But while he was not willing to negotiate against himself by offering up absolute assurances of Republican support before any serious discussions had occurred, he was effectively sending a message to… Read More