January 23rd, 2009



Since the recession started, Carl Icahn has been blaming mediocre management for the financial crisis that envelopes the entire world.  Today Icahn spoke out in the Wall Street Journal.  The same problem with management in the private sector permeate management of the federal government .

In his inaugural address President Barack Obama said, “Our economy is badly weakened, a consequence of greed and responsibility on the part of some”, and due in part to our “collective failure to make hard choices.”

Icahn responds:

“He’s offered few policy specifics other than saying we need to undertake massive new infrastructure and educational programs.  But he is right, there are a lot of hard choices we need to make. And one of them is to fix the way public companies are managed.   Private enterprise forms the basis of our economy. It provides most of the jobs we enjoy and creates the wealth that raises living standards. New government spending can only do so much to repair the economy.  Reshaping corporate management can do so much more.”

Icahn points out that we continue to subsidize managements that got their companies in trouble.   “The economy continues to sink, jobs are being lost, and markets continue on a downward course.  Changes are needed and can come if Congress insists on reforms that make corporate boards and managers more accountable to stakeholders. “

“Managers often come up with creative ways to perpetuate their reigns of error.”  For government managers replace “error” with “terror”.  After all, the government managers produce nothing tangible or in the least bit valuable. In fact the majority of government supervisors could not perform the job functions they were hired to do.  Too many government employees get management jobs via the ass kissing route which is the quickest and most easily taken road to promotion in the federal service.  Why would a competent government worker sell his soul and integrity for a few bucks a pay period?   For the most part, in the federal government, those who can, do. Those who can’t, become supervisors. 

Not once in my 30+ years in government did I ever  consider applying for a management position. Mama didn’t raise a fool.  For less than $10,000 a year (before taxes), I was not willing to forget everything I was trained to do. I was not willing to give up my integrity and dump my ethics to spend a career with my head up the ass of some egotistical, self serving higher level manager who couldn’t wipe his own ass.  Thanks but no thanks.  At least a fed worker bee, could maintain his/her self esteem and hide out from the morons.  Most managers couldn’t find their ass with both hands.  They sure couldn't out smart a resourseful, imaginative criminal investigator on their best day.  Meaningful work could be accomplished, in spite of poor management, prior to the Chakwin Reign of Terror.  Chakwin solved the problem of agents doing real work, by relegating competent senior investigators to cubicles where they sorted paper clips. We were occasionally released from our cloth cells to move supervisors’’ vehicles from the shop or to process  illegal aliens for some “rising star” group supervisor is wating. These brown nosers were way too busy kissing management ass to finish the mountain of paper work it takes to remove a single alien from the United States.   $132,000 a year clerks were the Chakwin way of conducting government “business” in the best interest of the taxpayer.   

As Mr. Icahn points out in the Wall Street Journal, “Lax and ineffective boards, self-serving managements, and failed short term strategies all contributed to the entirely preventable financial meltdown.  It is time for shareholders to fight back.”  The same words apply to meltdown of the federal government.  It is time for the taxpayers and rank and file federal employees to fight back.  Take your government back from the self-serving cowards.  Throw the bums out, especially the double dipping bums!  Are you listening, Kyle “Bully” Barnette?  Your days are numbered. This could be the only silver lining of the Obamanation of the the Administration of the United States of America.

king obama

Proposed Stimulous Package will HURT not HELP U.S. Economy

I don’t think that it can be pointed out enough, that the United States Treasury is broke. All the billions, oops, TRILLIONS of dollars that the government wants give away to spend us out of the current recession, has to be BORROWED.  This means America’s public debt is primarily being funded by the Chinese, Japanese and Saudis. Creditor nations, who already own trillions of dollars in U.S. government debt, are the only entities capable of underwriting the spending the politicians demand.  President Obama keeps telling us that benefits will result from collective “sacrifice”.

It appears that U.S. politicians can’t imagine that there could come a time when creditors decide to stop buying our debt.  The U.S. government is running up the largest deficits in history at the same time the rest of world is experiencing economic contraction (recession). 

Peter Schiff is an American economic commentator, author and licensed stock broker who currently serves as president of Euro Pacific Capital Inc. Mr. Schiff believes, “The root problem is not that America may have difficulty borrowing enough from abroad to maintain our gross domestic product (GDP), but that our economy was too large in the first place.  America’s GDP is composed of more than 70% consumer spending. For many years, much of that spending has been a function of voracious consumer borrowing through home equity extractions (averaging more than $850 billion annually in 2005 & 2006, according to the Federal Reserve) and rapid expansion of credit card and other consumer debt. Now that credit is scarce, it is inevitable that GDP will fall.”

Schiff continues, “Neither the left nor the right of the American political spectrum has shown any willingness to tolerate such a contraction.”  The bottom line is that when the effects of the ill conceived stimulus perpetrated upon us dissipates; the same unbalanced economy will still be with us.  Unfortunately, the debt load of the United States will be MUCH higher. 

Schiff points out that, “Currently, U.S. citizens comprise less than 5% of the world population, but account for more than 25% of the global GDP.  Given our debts and weakening economy, this disproportionate advantage should narrow.  Yet the U.S. is asking much poorer foreign nations to maintain the status quo, and incredibly, they are complying [purchasing massive amounts of U.S. debt], at least for now.”

The bottom line is that, “Taking on more debt to maintain spending is neither sacrificial nor beneficial.”



CNBC's Francis and Haines Call Senate Bailout Bill Tax Add-Ons 'Crap' | NewsBusters.org

Melissa Francis and Mark Haines were actually talking about the first bailout back in October,  not the second nor the third nor fourth...  Melissa Francis and Mark Haines are the BEST.  These two tell it like it is and you can see them bristle when socialists appear on CNBC.  Francis was born in LA and was actually a child actor. She graduated from Harvard.  But don't mistake her for a liberal socialist (Democrat). Melissa is a brilliant conservative who stands up for capitalism.  You won't find anyone on TV who sounds and looks better on the air than Melissa Francis!  Mark Haines is a no BS lawyer who has been on CNBC for twenty years. Today when Haines was interviewing a guy who started an ETF connected to companies that accept Tarp money , Haines asked him if his fund, "tracked a bunch of losers?"

By the way, Steve Leisman, senior economics reporter for CNBC, makes me sick!  Think communist, socialist, Obama apologist and you know everything you need to know about Leisman. 

CNBC's Francis and Haines Call Senate Bailout Bill Tax Add-Ons 'Crap' | NewsBusters.org