Where will the buck ever stop?

Stimulus … to be or not to be. That is a question.

But that isn’t the whole question. As currently defined, the stimulus provides improved credit availability and funding for the Detroit auto industry to support its operations. At least as important is determining how we can prevent a repetition of these problems. Until we can identify the causes and remedy them, we cannot hope to prevent a recurrence.

The primary responsibility for both problems is management. Just as the captain is responsible for his ship, the CEOs and presidents are responsible for their organizations. President Truman understood this when he acknowledged: “The buck stops here.”

In the case of current credit availability, our government mandated quotes for subprime mortgages to provide more “affordable housing.” Some of this housing remains, but much has been lost through foreclosures. This has contributed to our credit problem and ruined the individual credit ratings of many buyers, who were intended to be helped. Although private financial management firms were experienced with subprime mortgages, they did not effectively oppose this mandate.

The Detroit automobile industry is in shambles from producing too many noncompetitive vehicles, because of styles, performance and cost. The entire industry, Detroit and elsewhere domestically, is governed by the same government regulations. Outside of Detroit, however, the industry has been able to produce competitive units. Where was Detroit’s management when it came to meeting customer requirements? Where was its Washington lobby and use of the public forum to obtain any political support needed to allow valid business operations?

The difference between operations in Detroit and elsewhere nationally is management.

Now we are now providing “stimulus” funds to two Detroit companies, but all three remain managed by the same individuals as when the problems evolved. With their tin cups out and their three private planes waiting at the airport, the CEOs came to Washington for handouts. How inept and naive could they get? These are hardly resumes reflecting capabilities desired for selection to correct Detroit operations.

Will qualified managers please stand up?