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Persistent Overoptimism Three Ways: Truckers, Fed Economists, Manufacturers

MishTalk

Operating revenue decreased 15.9 Explaining the Persistent Overoptimism In a cross-country study of private-sector forecasts from 1989 to 1998, Loungani (2001) finds that “the record of failure to predict recessions is virtually unblemished.” That has spread to the truckload side as well. percent to $182.5 percent to $160.7

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Kodak’s Downfall Wasn’t About Technology

Harvard Business

Before Mark Zuckerberg wrote a line of Facebook’s code, Kodak made a prescient purchase, acquiring a photo sharing site called Ofoto in 2001. Today the company has annual revenues above $20 billion, competes in healthcare and electronics operations and derives significant revenues from document solutions. It was so close.

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Why GE’s Jeff Immelt Lost His Job: Disruption and Activist Investors

Harvard Business

So is John Rice, the head of global operations, along with CFO Jeffrey Bornstein. Increase operating margins to 18% (by cutting expenses). In June 2017 the board “retired” Immelt and promoted John Flannery to CEO. Since then Flannery has replaced Immelt’s vice chairs responsible for innovation. Comstock is out.

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Shockingly Bad Fiscal Health of Chicago (and the Financial Engineering Chicago Uses to Hide that Fact)

MishTalk

The Corporate Fund is Chicago’s general operating fund. Chicago’s property tax revenues do not go into its general operating fund. Rank-and-file officers rejected a city contract offer in 2001, but an arbitrator ruled in favor of the city’s wage proposal a year later. It is not a balance sheet test, but a cash flow test.