Michael Butler’s Blog

I would like to weigh in on a subject of continuing concern. Acquisitions, Mergers, Consolidations, i.e. growth of Corporations. Like cancer I feel great concern over the expansion of the size of businesses in America and worldwide.
Auto makers, Airlines, Banks, Media, Retail are just some of the areas currently in attention.

Both GM and Ford bonds are now junk status. They have serious pension problems. These automakers are loosing market share to overseas companies who have a greater touch with the buyers desires in products and services.

Many airlines are losing billions. Look at United which just dumped its pension responsibilities on the government-shades of the S&L bailouts. Delta may be right after them, followed by others. Yet there are many, albeit smaller, airlines profitable.

Banking M&A’s have created a monster financial and political power recently successful in a new draconian law for personal bankruptcy. This law does not address those large corporate collapses so prevalent nowadays.

Media companies have become so large that they threaten the freedom and diversity of information and culture. Frequently media has toadied to the influence of governmental administrations and powerful corporate groups.

WalMart has made a habit of putting locals out of business and is known for crushing organized attempts for reasonable wages.

America has grown strong over the existence of small businesses and the strength of the middle class. What we are seeing with this movement of near monopolistic expansion is the increase of the rich and the poor at the expense of the middle. We are at the mercy of an increasingly smaller group of individuals who are capable of making mistakes which have a far greater impact on all while they enjoy increasing perks. Smaller may not be better but it is for certain safer than the current uncontrolled growth.