Obama launches neo-Socialism?

If one purpose of business communications is to inform stakeholders and competitors alike of your strategic intentions, President Obama gets straight As for the course. Today, he further distanced himself from the Bush administration and emphatically coupled himself with the socialism of organized labor.

So strong were Obama’s socialist labor commitments that the Hoffa scion, James P., proclaimed “It’s a new day for workers.”

The Hoffa offspring of legendary trucker boss Jimmy Hoffa and himself the current Teamsters’ president, said at a White House ceremony: “We finally have a White House that is dedicated to working with us to rebuild our middle class. Hope for the American Dream is being restored.”

[While clear business communications get a bit hazy at this point, it is safe to read “American dream” as organized labor, or redistribution of wealth, or equalization of income.]

Furthering this warning to corporate America, Obama signed three executive orders that he said would “reverse many of the policies towards organized labor” enacted during President George W. Bush’s two terms.

Obama's executive orders will require federal contractors to offer jobs to current workers when contracts change and will make it more difficult for federal contractors to discourage union activities, according to The New York Times. They will also closely examine how to restore “the balance in the workplace,” which includes provision of or funding for child care, increased workplace safety and additional retirement security. Each classic management responsibilities and decisions.

Sounding like a pre-WW II socialist, Obama described his American worker constituency as those “men and the women who form the backbone of our economy, the most productive workers in the world.”

To further emphasize the point, Obama said, “I do not view the labor movement as part of the problem. To me, it’s part of the solution.” We think this is pretty consistent thinking for a community organizer.

Wall Street behavior “shameful,” Obama says

Wall Street’s distribution of nearly $19 billion in end-of-year bonuses to executives and financial managers was “the height of irresponsibility. It is shameful. It's outrageous,” a visibly irked President Obama told reporters as he prepared to enter a Senate Banking Committee meeting chaired by CT Sen. Chris Dodd. 

Obama said that bonus payments may be justified at certain times, but now "is not the time.... You are never going to get any support for the continued tough decisions we 

have to make if this kind of behavior continues."

Wall Street needs to “show some restraint and show some discipline,” Obama fumed.

Dodd later said that he is “demanding that the Treasury Department figure out some way to get the money back,” referring to TARP funds distributed to the financial institutions, some of which was used for the bonuses.

Let’s not mince words, Maureen!

We love Maureen Dowd! And even more so today.

The editorially passionate NYT columnist never disguises her feelings. Today’s journalistic offering entitled “Wall Street’s Socialist Jet-Setters” was no exception.

She copped the term “Citiboobs” from the New York Post, and then added a few choice descriptions of her own for the virtual criminals of Wall Street. She called them “obtuse bankers and auto executives,” to include the flyboys from GM, Chrysler and Ford. And further questioned “How could Citigroup be so dumb.”

Obviously to Maureen, a “warped mentality” characterizes the “greedy creeps on Wall Street,” who exhibit “specious, contemptible reasoning.” They’re absolutely “ruthless, careless ghouls.”
These “feckless financiers,” she added, rank right up there with “sociopathic sadist Bernie Madoff.”

Well, Maureen, next time do you want to tell us how you really feel!

Maureen's column is available at this link.

“Who can you trust?” Darn few!

Global financial markets remain largely frozen because of distrust among bankers. Now comes the Edelman Trust Barometer released today [Jan 28, 09] at the Davos World Economic Forum.

The Financial Times today says that global business and economic leaders – the very ones gathering in Switzerland - “have never been less trusted to provide the answer to financial and social troubles they are supposed to be addressing.”

CEO’s and the information they provide to stakeholders lead the parade among the untrusted. Only 17% in the US are trusted; 29% in Europe.

Bankers come in next: 36% trust bankers in the US; 41% in Europe.

Business overall is similarly mauled. Among Euro businesses, only 36% are credible; 38% in the US.

The FT suggests that all of this lack of credibility stems from behavior by business, media and government. Specifically: Enron, Worldcom and Parmalat undermined the business sector; CBS’s Dan Rather and The New York Times’ Jayson Blair tarnished the media; and British and American handling of Iraq hurt government trustworthiness.

Cutting down Wall Street wealth

Andrew Ross Sorkin, the NYT’s M&A reporter, writes in his column today that current Wall Street “Masters of the Universe” are falling on hard times – well, comparatively. And rightfully they should. [See “Money grows on trees” post.]
 Their behavior has been deplorable.

While millions of Americans are unemployed – and more to come – these Villains of the Universe are getting slammed where it hurts – in their finances. Look at what Sorkin says The Villains’ new and lower personal worth is, based on the shares they own in their respective companies.

Vikram S. Pandit, Citigroup – was $31 million; now $3.7 million.
John A. Thain, Merrill Lynch – was $28.5; now $6.5 million.
Lloyd C. Blankstein, Goldman Sachs – was $465 million; now $167 million.
Kenneth D. Lewis, Bank of America – was $121 million; now $18.5 million.

Postscript: With the antics of Wall Street, it is not surprising that today’s consumer confidence index fell to 37.7% from 38.6% last month [Dec]. Also, more consumers’ believe business conditions are "bad" [47.9% vs. previous 45.8%]. Consumers who expect increasing personal income dropped from a low of 12.7% to 10%. Glum getting glummer!

Obama hammers Citigroup's Falcon

Bulletin Web headline from ABC News:

"Citigroup to Refuse Delivery of New Jet Under Pressure from White House [8:43 a.m. ET]"

To have put themselves in the position to be admonished by the President's office is a serious lapse of business acumen, and further undermines the public's opinion of "big business" and bankers in particular. Good that Citigroup was responsive, belatedly, though. Sounds like a job Rahm may have been given.

When money grows on trees...

With $45 billion from American taxpayers, Citigroup now can easily afford to pamper its executives – and to do so with a new $50 million corporate jet purchased from French manufacturer Dassault. The New York Post broke the news Monday, Jan 25. The Falcon 7X easily accommodates 12 Citigroup execs in quiet comfort at speeds up to 559 mph.

And, let’s see, former Merrill Lynch boss John Thain dropped a tidy $1.2 million redecorating his office. Then, he handed out billions in senior management bonuses just before the company was taken over by Ken Lewis and the Bank of America - at taxpayer expense. Then, Lewis fired Thain. [By the way, Thain's interior decorator was Michael S. Smith, who will redo Michelle Obama's White House for a mere $100,000, according to CNBC; what a bargain, and lots of press.]

And there were the brazen Detroit "Big Three" CEOs from GM, Chrysler and Ford, who winged into D.C., where they begged for and received billions of taxpayer dollars so they could survive for three more months - until March.

All of this makes you homesick for ex-Tyco CEO Dennis Kozlowski and his $15,000 umbrella stand, $2,200 wastebasket, and other truly major indiscretions for which he was sentenced to 25 years of room and board at government expense.

Where have common sense and business judgment gone?

Obama's Eddie Haskell

The New York Times today called President Obama's chief of staff, Rahm Emanuel, "brash." That for his knuckle cracking in his boss's ear, for his ever-present edging into presidential photo-ops, and for thumbing his nose [all five fingers, no less] on camera at his former House colleagues during the inauguration ceremonies.

The Times excuses these indiscretions, and suggest that Emanuel will mature and grow into his highly visible role. Likely so, but his antics -- those of a brash adolescent -- immediately remind us of the bright yet ever-so-annoying Eddie Haskell, the Beav's antagnonist in the nearly-forgotten "Leave It to Beaver" sit-com. 

Edit30 believes the last word on this is that the Prez should jerk Eddie's [Oops; sorry!] Rahm's chain a tad and return a bit more decorum among the White House staff. Your thoughts?

[Photo source: http://www.house.gov/emanuel/images/repemanuel.jpg] 

The Times story.

The International Herald Tribune's picture of the five-finger salute.

The beginning

As we enter this first hour of the first day of an uncertain future, we're reminded of Tennysons's Ulysses:

...Come, my friends,
'Tis not too late to seek a newer world.
Push off, and sitting well in order smite
The sounding furrows; for my purpose holds
To sail beyond the sunset...
And see the great Achilles, whom we knew