William J. Holstein

About this blog:

I believe that the most important thing Americans have to do is secure their economic well-being in an increasingly challenging, complex world. All the arguments about culture (school prayer, the flag, etc.) are fine for other Americans to have—and they are a healthy sign of democracy. But they are beside the point.

What I have written about all these years is the process of creating wealth, not for any one individual, but for the United States as a whole. Ever since I was a young correspondent witnessing the emergence of China, just after the country opened in 1979, I've held the opinion that we have to get more serious about increasing the wealth of the U.S.

That means focusing not only on how our corporations are run (governance), but also on innovation and productivity/competitiveness. Despite the predicament in which we find ourselves today (and I think we face a tough five-year economic restructuring, not a mild recession), I retain faith in the resiliency of the U.S. economy and the enterprise of American people. If Americans have the right facts, and focus on the task at hand, we can once again get serious about creating wealth, not just playing funny money games.

So come with me on this journey as I explore the complicated issues involved in maintaining the economic health of the U.S

Goodbye, Chrysler
May 2, 2009--Immediately after entering Chapter 11 bankruptcy, the signs already are mounting that Chrysler may never be able to emerge. The reason is that suppliers are starting to withhold parts and declare bankruptcy themselves, disrupting the very delicately ...
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An Online Conversation With The Readers of The Washington Post
I attracted more than 100,000 page views for this online conversation today with readers of The Washington Post: http://www.washingtonpost.com/wp-dyn/content/discussion/2009/04/30/DI2009043002446.html?hpid=topnews ...
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Is the UAW Going to Run Chrysler?
April 29, 2009--The way things are shaping up, the United Auto Workers is going to own 55 percent of the shares of Chrysler, and Fiat will own 35 percent. Taxpayers will own the rest. So who is going to run the company? This appears to be like the German ...
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Gm Avoids Bankruptcy
April 27--The measures that General Motors Chief Executive Fritz Henderson announced today were extremely painful, but my analysis is that they will be sufficient to stave off a Chapter 11 bankruptcy, including the disastrous idea of dividing the company into a ...
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Beware of Corporate Governance Overreach--Take Two
April 25, 2009--The Securities and Exchange Commission is about to toss out a longstanding rule that will have the effect to further tilting boardroom fights toward the interests of shareholders. I believe that is a bad thing. But first the details: According to ...
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Is Obama Paying Back to the UAW?
April 24, 2009--We see that the Obama administration has cut a deal with the United Auto Workers regarding a possible Chrysler bankruptcy. The administration agreed that the UAW's benefits, including pensions, would be preserved even if Chrysler goes into some form ...
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The Washington Post’s Warren Brown praises “Why GM Matters.”
Warren Brown is the top automotive correspondent for the Washington Post and is regarded as one of the deans of the national automotive press corps. Here's what he said in his column yesterday: By Warren Brown April 19, 2009 The perception gap has been a killer ...
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The New York Times Wakes Up to The Perils of a GM Bankruptcy
April 17, 2009--After weeks and months of parroting the line that General Motors ought to go into bankruptcy, lo and behold, the New York http://www.nytimes.com/2009/04/17/business/economy/17auto.html Times has finally printed a realistic story entitled: "A Quick ...
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Deep Truths About Pushing GM Into Bankruptcy
April 16, 2009--As I've long argued, bankruptcy lawyers and their investment banker allies are trying to push GM into bankruptcy because of the huge fees they can earn. For evidence of how much money is at stake, the Wall Street Journal reports today that Weil, ...
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Is Obama Going to Put the Screws to the UAW?
April 15, 2009--So far, President Obama and his automotive task force run by New York investment banker Steve Rattner have fired Rick Wagoner as chairman and chief executive officer of General Motors and put major pressure on the holders of GM bonds to accept ...
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GM in Bankruptcy: Could it be Obama’s Iraq?
April 11, 2009-- I see a parallel between the George Bush decision to invade Iraq and the Obama administration's posturing on bankruptcy being the best outcome for General Motors--Bush went into Iraq without knowing the difference between a Shiite and a Sunni. And ...
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An Intelligent Critique of GM, And My Book, From an Insider
April 8, 2009 Mr. Holstein, Your book entitled Why GM Matters was enjoyable and it provided insight into their globalization structure, design centers, etc. GM certainly does matter, and they will no doubt survive even if it is under duress. Having worked for ...
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Beware of Corporate Governance Overreach
April 7, 2009 As a result of years of covering chief executive officers and boards of directors, I’m convinced that there needs to be a very delicate balance between CEOs and directors. That balance is key to making sure that the CEO and his or her management ...
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My remarks at Columbia University--April 6
http://www2.gsb.columbia.edu/flash/cbsplay.html?video=centers/CJEB/CJEB_twobehemoths_4-6-09_34305 ...
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Why Steve Rattner Must Resign from the Obama Automotive Task Force
April 5, 2009--There were two dramatically different stories about Steve Rattner in today’s newspapers. One was a preposterous puff piece in the New York Times by Louise Story praising Rattner for having a socialite wife, Maureen White, who helped him raise ...
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