Suze Orman will be a guest on Larry King Live Tuesday.
She is a well-known personal finance expert, and host of The Suze Orman Show on CNBC.
Suze’s commentary is a Larry King Live Blog exclusive.
Last week I watched the CEOs of the big three automakers testify
before Congress. Testify is being kind, as what they really seemed to
be doing was begging for money. All because their companies refused to
invest in what they had to know was true, for more than 20 years.
Those supposedly smart CEOs that you are programmed to believe are
smarter than you, didn’t follow the simple law of making choices that
are based on fact, on what is known. We have known for years that oil
is a limited commodity, yet Detroit did not aggressively pursue higher
fuel efficiency (and don’t get me started on the fact that Congress
didn’t exactly push them in that direction). They saw their competitive
edge erode to foreign car manufacturers, yet they didn’t manage their
business to adapt to that competition. And in the process they turned
off their main client: Americans, who refused to support products that
they now judge to be of inferior quality.
They saw the marketing surveys; they knew they were losing ground to
the competition, yet it sure doesn’t seem like they made the massive
changes necessary to reinvent themselves for an evolving auto industry.
Yet, I firmly believe that as incompetent and clueless as they were,
now is not the time to let the Big Three fail. We as a nation can’t
afford the impact of all the lost jobs: both those employed directly by
Chrysler, Ford and General Motors, and the millions more whose
livelihood is linked to the industry.
Yes, we should all be mad and annoyed that we have to bail out these
companies that have been run with an indifference to tackling what is
known. My hope is that at the very least, any federal aid will come
with serious requirements, oversight and regulations. What is needed is
that these CEO’s finally get their heads out of the sand and make the
known changes that have always been needed and start running these
companies like this is 2008 not 1958.
In the meantime, as I was watching the Congressional hearing I was
thinking about you, and how my wish is that you act far more
intelligently than the auto CEOs this holiday season. I hope that you
have the fortitude and foresight to make choices based on what you know
is true today.
- You know you need to build an emergency savings fund that can cover
six to eight months of living expenses; so you and your family will be
okay if you are laid off.
- You know you need to get serious-finally-about tackling your credit
card debt, because you understand how a high unpaid balance can mean
big trouble in 2009.
- You know you need to invest more for retirement to have any shot at living comfortably later in life.
- You know you need to sit down with your child and discuss how much you can honestly afford to cover for college
If you honestly know all that, you will not spend money on holiday
shopping that should instead be used to build financial security. If
you know all that, you will take actions based on what you know so you
never have to turn to anyone for a bailout (as if you could get one).
Stop looking up to the CEOs of the world as if they are smarter than
you. If they are so smart, why have they run their companies into the
ground? I want better for you and your family. Focus on what you know
you have to do to build security and you will give your family the most
wonderful gift of all.
Happy Holidays.
– Suze
