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APRIL 25, 2005
The BusinessWeek 50: Cautionary Notes "The BusinessWeek 50" (Cover Story, Apr. 4) announces this year's list of "the top performers." May I suggest that in future years the cover should read: "apparently the top performers." Even after the passage of the Sarbanes-Oxley Act, with its stringent Section 404, we still read in the papers that this or that hitherto-acclaimed company will have to restate earnings reported in prior years. In the 1990s the business press earned itself no glory by glorifying one Potemkin village after the other in the business world -- Enron and WorldCom (MCIP ) being only the most visible among them. It is time that the business press started hedging its praise. Uwe Reinhardt Princeton University Princeton, N.J. Seven out of your top 11 performers are from the oil and energy sector. So much for the invisible hand. Rama Rao Irvine, Calif. Every time you publish a list of the top companies with pictures of their CEOs, I am struck by the lopsided proportion of old white guys, and I sigh. Paula Berinstein Thousand Oaks, Calif. The Co-Pilot Who Helped Nucor Soar Although Daniel R. DiMicco has taken Nucor Corp. (NUE ) to new heights ("Soaring on wings of steel," The BusinessWeek 50, Apr. 4), Kenneth E. Iverson deserves a lot of credit for taking Nucor from near oblivion to a successful company. His genius in labor relations made the Nucor production employees the best-paid workers in the steel business while giving Nucor the industry's lowest labor costs. J.E. Franzle Charlotte, N.C.   Predatory Lending: The Wrong Approach I work in lending and, along with everybody I know in this business, support predatory-lending laws. However, I must comment on "Congress draws a bead on predatory lending" (Washington Outlook, Apr. 4) and the battle between Washington and the states. I can certainly understand the states' take on the issue and the consumer advocate groups' decision to side with them. The subprime market has its place in the lending world. Many lenders pull out because it is too difficult to abide by 50 different state laws and the various local laws of county and town governments. As a result, consumers who are in need of credit and who cannot otherwise get it in a conforming market are squeezed out and cannot attain the American dream of homeownership. The states are right about one thing: By keeping individual states involved in the process, we might get rid of predatory lending -- not directly because of the laws, but because lenders will eventually pull out of these markets. Michael Tano Branch Manager New South Federal Savings Bank Pensacola, Fla. A Clearer Eye On Oracle And The Database Market "Larry, you picked a nasty fight" (News: Analysis & Commentary, Apr. 4) about Oracle Corp. vs. SAP stated that Oracle Corp. (ORCL )"clearly dominates" [the database software] business. While Oracle is a major player, DB2 from IBM (IBM ) has a similar share of the market and SQL Server from Microsoft Corp. (MSFT ) also has a significant share. There are other major players in the market including Teradata (NCR ) and Sybase Inc. (SY ). "Clearly dominates" grossly overstates Oracle's position in the database market. Sid Adelman Sherman Oaks, Calif. GM: Some Words Of Advice From The Fans "Running out of gas" (News: Analysis & Commentary, Mar. 28) said General Motors Corp. (GM ) should cut back because "[it] doesn't have many products that are hot right now." At the Greater St. Paul & Minneapolis International Auto Show, Buick had an absolutely stunning convertible concept car -- a true four-seat convertible with real legroom in the back and wheels way out at the corners, I must assume gobs of smooth power, and all the nice trimmings one could imagine. It was a 100% jewel able to pull people into the showroom and dazzle them on the streets! But alas: "We have no plans to make it anytime soon." GM, forget for a moment about car loans, union woes, and pensions. Take risks on excellent products. Build that Buick, and make every element just right. Get in the habit. George Anderson Champlin, Minn. Phase out Buick or Pontiac? Why not Saturn, which is completely redundant? Saturn has weak products and is mostly known for its outstanding customer service and retail network. Is there anything about Saturn to which a competent market-expanding Chevy would not aspire? Shouldn't the Saturn Sky be the next Camaro? Shouldn't the Saturn Aura be a better Chevy Malibu? Now hear this: Merge Saturn and Chevy. If the Saturn brand is positioned as midmarket and a cover for Euro-style Opel, and Chevy is downmarket and domestic, I'd say there isn't a downmarket anymore, and GM certainly can't afford to have its largest division there. GM has declared "Chevrolet" to be its new global brand from Chile to Korea. Merge the best, purge the rest, and blend with Opel. That will save a bundle in the out-years. Jay Martin Seattle Andy Grove Can Add NBR To His List Of Admirers We read with great interest Jeffrey E. Garten's column "Andy Grove made the elephant dance" (Economic Viewpoint, Apr. 11), reflecting on Andrew S. Grove's pending retirement. Just to set the record straight, Nightly Business Report, distributed to Public Broadcasting System stations across America, was pleased that the Wharton School joined with us to name the 25 most influential business persons of the past 25 years. Grove topped our list, which we unveiled as the centerpiece of a TV special that marked the occasion of the 25th anniversary of Nightly Business Report, the nation's longest-running daily business news program. Linda O'Bryon Senior Vice-President & Executive Editor Nightly Business Report Miami Parts Of Social Security That Don't Need Fixing In "Why private accounts are bad public policy" (Economic Viewpoint, Apr. 4), Robert J. Barro cites changes in life expectancy in blithely recommending that the retirement age be pushed beyond 67. Many of us hope to work long past our sixth decade, but we all know people who are ill and failing by their early 60s. Life expectancy and health do not, unfortunately, progress hand-in-hand. Mary C. Combs Gaithersburg, Md. Barro suggests an "acceptable standard of living" would result by indexing baseline Social Security benefits to prices rather than wages. A recent Congressional Research Service study estimates that the Social Security benefit for a person with average earnings over a lifetime and retiring in 2005 would have been slashed from $15,336 per year to $6,180 per year had the initial benefit been based on increases in prices rather than wages. Mark L. Smith, President Iowa AFL-CIO Des Moines
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