Cars bursting into flames are never a good thing. So when a Tesla Model S ran over a metal object in Kent, Wash., in October of 2013 and burst into flames, owners, potential customers, investors, and company executives got worried. But rather than a massive recall, costly repairs, and a big financial hit to the car maker, Tesla was able to correct the problem with a software command to all of its cars on the road. A federal investigation into safety was closed four months later, with no recurrences. Tesla is one of many companies finding 21st century solutions to 20th Century problems. The goal: "friction-free" capital--money, labor, and information flowing quick and smooth at less cost.
Geoff Colvin, editor and writer for Fortune Magazine delves into other companies doing the same. Sinclair and Steve review key revelations. In the Q & A, Steve explains how reliance on bonds paying 5% to 8%--as they did in the 20th Century--is a losing proposition in the 21st Century. Interest rates have been cut in half and retirements have doubled in length. Here's what to do about it and some important points to consider about your current portfolio.
In segment 4, The A-Team honors the 240th birthday of the U.S. Marine Corps. We listen to Johnny Cash doing "This Old Tattered Flag". We think you'll like it.