Archived posting to the Leica Users Group, 2011/06/02

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Subject: [Leica] Abandoned Harvester factory
From: jayanand at (Jayanand Govindaraj)
Date: Thu, 2 Jun 2011 13:57:30 +0530
References: <>

I remember doing International Harvester's demise as a case study - what
killed the company was bad financial management, nothing to do with the
products. It is a real cautionary tale, but the world forgets these lessons
very fast. It was caused by a CEO, Archie McCardell, piling on debt in good
times to boost earnings per share (EPS) by diversifying into unrelated
areas, all for increasing the share price to maximize his bonus - encouraged
by every Investment Bank in sight. The contrast was provided by John Deere,
who raised equity in the good times, therefore protecting themselves against
a market downturn in the future, in exchange for reduced EPS and
consequently lower share price in the short term. I need not tell you which
company was the darling of Wall Street at that time! Well, we know now which
decision was correct, don't we? As is always the case in this sort of
bungling - if the diversification drive had taken place with equity the
company would probably have survived, though McCardell's bonus would not
have - the workers are the ones who suffer, seldom the senior management.
Remember this is a tale of the late 1970s and not 2008!

Exactly the same problem caused the recent recession, only it was individual
balance sheets that had sky high leverage, and not corporations - except the
banks, of course, who did but were bailed out.


On Thu, Jun 2, 2011 at 1:28 PM, Chris Crawford <chris at
> wrote:

> I shot this a couple months ago with a 75mm f2.5 Color-Heliar CV lens on my
> M6.
> --
> Chris Crawford
> Fine Art Photography
> Fort Wayne, Indiana
> 260-486-2581
>  My portfolio
>  My latest work!
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