Posts filed under “Corporate Management”
To outsiders, Wall Street is a manic, dangerous and ridiculous republic unto itself – a sort of bizarro world where nothing adds up and common sense is virtually inapplicable.
Consider the following insane things that we believe on Wall Street, that make no sense whatsoever in the real world:
1. Falling gas and home heating prices are a bad thing
2. Layoffs are great news, the more the better
3. Billionaires from Greenwich, CT can understand the customers of JC Penney, Olive Garden, K-Mart and Sears
4. A company is plagued by the fact that it holds over $100 billion in cash
5. Some companies have to earn a specific profit – to the penny – every quarter but others shouldn’t dare even think about profits
6. Wars, weather, fashion trends and elections can be reliably predicted
7. It’s reasonable for the value of a business to fluctuate by 5 to 10 percent within every eight hour period
8. It’s possible to guess the amount of people who will get or lose a job each month in a nation of 300 million
9. The person who leads a company is worth 400 times more than the average person who works there
10. A company selling 10 million cars a year is worth $50 billion, but another company selling 40,000 cars a year is worth $30 billion because its growing faster
Away from Wall Street, no one believes in any of this stuff. It’s inconceivable. On Wall Street, these are core tenets of our collective philosophy.
No wonder everyone else thinks we’re insane.
Morgan Housel makes the delightful if infuriating observation that bank execs take credit — along with fat paychecks and even fatter bonuses — on the way up. On the way down, its always seems to be someone else’s fault: Robert Rubin, a former Treasury Secretary, joined Citigroup in 1999 as chairman of the executive committee. He was…Read More
From Transparency International: The OECD Anti-Bribery Convention, adopted in 1997, requires each signatory country to make foreign bribery a crime for which individuals and enterprises are responsible. The Convention is a key instrument for curbing the export of corruption globally because the 41 signatory countries are responsible for approximately two-thirds of world exports and almost…Read More
The American Red Cross has become a man-made disaster. It wasted millions of dollars in Hurricane Sandy aid through mismanagement and poor judgment. It compounded the snafu by covering up its errors, hiring lawyers to prevent the public from finding out what happened to its donations. Earlier this year, I expressed my disappointment in the…Read More
Bill Gross, founder of Pimco, and its chief investment officer for the past 40 or so years, resigned last week. Rumor has it that he was but two steps ahead of a mutinous gang, swords out, planning to make him walk the plank. Gross was too quick and before the mutineers could force him, he…Read More