Tuesday, October 16, 2012

Down Town Hallway

Greetings good citizen,

Um, the pattern established four years ago remains in place. Stock markets enjoyed another ‘up’ day today for no solid economic reason.

Perhaps more interesting is the other top news item for the day…and what we should make of it.

You can read the article but they studiously avoid mentioning how old Vikram ISN’T.

Of course, the ‘spin’ tells us he isn’t stepping down so he can retire, he’s (supposedly) leaving before he’s thrown out.

Personally (and this is pure speculation on my part) I think Vikram is joining the One Percent in going to ground, ‘taking cover’ if you will.

The shit’s about to hit the fan.
Pandit Steps Down as Chief of Citigroup
By JESSICA SILVER-GREENBERG and MICHAEL J. DE LA MERCED 3:59 PM ET

Vikram S. Pandit stepped down after long-simmering tensions with the board. John P. Havens, the bank’s president and a longtime associate of Mr. Pandit, also resigned.

Vikram S. Pandit resigned from Citigroup on Tuesday. There were concerns he lacked the breadth of vision needed to turn the bank around. “He was considered more technically skilled,” one Citi executive said.

Meet Citi's New C.E.O.
By BEN PROTESS and PETER EAVIS 3:16 PM ET

Michael L. Corbat, 52, was an all-conference lineman on the Harvard football team and has been a Citigroup lifer.

A New Show of Power by Boards
By STEVEN M. DAVIDOFF 3:47 PM ET

The departure of Vikram S. Pandit shows clearly who is in charge of Citigroup: the directors. For good or for bad, boards are increasingly taking charge of corporate America.
So, after four years of mismanagement by incompetent CEO’s, the basically useless board of directors has suddenly decided to step up and ‘take charge’?

Worse, most of these boards are cross-populated AND most directors are the ‘cronies’ of the CEO’s they serve!

But you’re not supposed to know that.

So what does Vikram’s sudden exit look like now?

Because you don’t see Mr. Blankfein stepping down, nor does the Goldman board feel compelled to ‘flex their muscles’…
Goldman Sachs Swings to Profit as Revenue Surges
By SUSANNE CRAIG 12:41 PM ET

Helped by its powerful trading business, the firm's revenue more than doubled in the third quarter, to $8.35 billion, exceeding the estimates of Wall Street analysts.

Um, nobody is surprised when a bank ‘beats the estimate’ obviously made by a clueless insider…but this is ‘old news’.

The question you should be asking yourself, good citizen, is how GS makes 8.35 billion (this quarter!) in profits in a (global) economy that is foundering on the rocks?

It’s either magic or its theft…which one do YOU think it is?
A soup kitchen in Camden, New Jersey. Economists’ thinking on income inequality has changed sharply in recent years.

Income Inequality May Take Toll on Economic Growth
By ANNIE LOWREY 12:48 PM ET

The concentration of income in a few hands might mean not just a more unequal society, many economists say, but also a less vigorous economy.

And STILL they get it wrong! The main problem with income inequality is the tendency of money to ‘sit’ in the upper reaches of the economy.

The ‘uber wealthy’ already have everything they need so they don’t spend their money…worse, since the average consumer isn’t being given higher wages, and believe me, the cost of living continues to escalate. The ‘velocity of money’ has slowed considerably.

Because the cost of living has exceeded the rate at which pay has increased the general level of poverty is climbing…which is placing a strain on the nation’s safety net…(what’s left of it.)

Yeah, that ‘income inequality’ thing is screwing the whole economy up…and we will NEVER be given the opportunity to ‘vote’ on the issue because it takes billions of dollars to get an issue like that on the ballot.

And nobody really thinks those with money to burn are going to voluntarily raise taxes on themselves (although they would do just that if they believed it would save their ownership rights!)

As we tick closer to the bitter end of these posts and our civilization you can expect more concentration on A Simple Plan.

The better you understand it, the better off we all will be!

Thanks for letting me inside your head,

Gegner

PS, Don’t let the slavers win!


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