One of our reader's who blesses us with frequent comment's, left the following tidbit for us recently (responding to: Buffett suffers big losses at Berkshire Hathaway) and I thought I would share it because this sentiment comes to us frequently. - "And the American people are simply apathetically sitting back while our CORRUPT Congress who enabled and allowed all of the corporate FRAUDS, continues to allow the CORRUPT CEOs and Boards of Directors run those corporations, and to keep their ill gotten "weath" that they amassed while mismanaging the corporations, and orchestrating and perpetuating all of those FRAUDS."
In addition to the actions of the public there are thousands of journals publishing tens of thousands of stories and accepting letters to the editor for further discourse. The media, including television, radio, the cinema, and the blogosphere offer still more commentary. Very few issues in our world are not thoroughly thrashed out in public. The misconception from those that would make general characterizations is that we the people speak with one voice -- we do not!
Therefore our representatives fight to place their fingertips on a imaginary ouija board struggling to influence an outcome or decision on a subject that they have little knowledge of but nevertheless strong conviction -- that is until their polling tells them different.
This conviction may in fact come from polling done in their districts that allows them to claim the local high ground. Statistics show that most of us hold much lower opinions of somebody else's representative then our own. This of course dissipates as you look toward higher office.
In the case of corporate management, they behave like authoritarian dictator's sending money that has been skimmed off the top from shareholders to Switzerland or the Bahama's. Why do they do it? Simply because they can.
Unlike small business owners who must cater to their customers and pay their employees first, sometime foregoing there own salaries at times (especially these times) they have a "me first" attitude. At least if 'my pal Warren' screws up he not only owns up to the blame but pays the price, because he owns 31% of the company and is the biggest loser.
Many CEO's see their shareholders, not as partners, but as suckers not only letting the fox guard the hen house, holding the keys and blocking the entrance preventing the farmer from seeing whats going on inside.
While we may share Mr. Harrison's views in large part, we must recognize that the problems are systemic and not so personal. We need to review the oversight process focusing our attention on checks and balances and transparency in the process.
While management may have made off with billions in inappropriate pay and bonuses they lost plenty also when the market dropped 50% and the largest insurance company in the world American International Group (NYSE: AIG), the largest bank in the world Citigroup Inc. (NYSE: C) and the largest automobile company in the world General Motors (NYSE: GM) all are facing bankruptcy. They may be operational, but losing 97% of their value was very costly to all but a few.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I do not own shares of AIG, C, or GM. I do own shares of BRK.B











Reader Comments (Page 1 of 1)
3-03-2009 @ 2:48PM
Flipspiceland said...
Making our frustrations known may provide some relief but I back my frustration up by voting against every senior incumbent in office. I did it with Santorum and every 6 years with Specter. Never vote for Rendell and against every incumbent who has held office for more than two terms.
I don't see my fellow bloggers admitting to that.
Many are uselessly frustrated but few will actually DO anything more than write about it.
3-03-2009 @ 4:24PM
brettze said...
Frustrated, still??? How about trying carpooling??
3-04-2009 @ 10:40AM
BHarrison said...
The apathy that was addressed is the lack of effective actions by the American people to hold their Congressmen responsible for their CORRUPT actions in having tacitly enabled and allowed the FIs and the corporation to orchestrate and perpetuate the massive FRAUDS that have totally undermined our national economy.
People are unquestionably upset and angry with what has occurred; however, the Congressmen appear to be impervious to what the American people have done. Eighty five percent (85%) of the Ameicans who reportedly contacted their Congressmen before the approval of the original $850 BILLION "bailout" legislation were AGAINST approval of that legislation, especially with the $100 BILLION that the Congressmen added for pork barrel and earmarks.
Congress is unquestionably disregarding the voiced concerns and opinions of the American people . . . and "the people" are simply allowing all of this to occur.
As the French philosopher Rousseau stated "People have the government that they deserve . . ." If they tolerate "CORRUPTION", then that is what they deserve.
The vast majority of Congress has unquestionably "put the financial interests of the elitists corporate and ultra-wealthy special interests in lieu of the "best interests of our nation and the people".
The Congressmen obviously serve those who contribute the most to their political campaign funds, and in "other manners". this is the outright "selling out" of the Ameican people.
An example is the disclosure of Allen Stanford's political contributions to many Congressmen's political campaign funds just prior to their voting on legislation that would have increased regualation and oversight on his financial empire. The legislation was subsequently defeated. Bill Nelson (D-FL) reportedly rceived the largest campaign contribution of $45,900.00.
Regardless of whether these Congressmen return these campaign contributions, that does not deminish the "appearnce of what probable impropriety in all of this. and in my opinion, too many Congressmen appear to be "selling out" the American people for perhaps a penny on a thousand or ten thousand dollars".
So far, I have not seen any Americans "taking to the streets in protests" or other vehement outrage and pressure against these Congressmen. And the Congressmen are, for the most part, obviously ignoring the expressed opinions of the American people.
To me, "apathy" is in failing to take whatever actions that may be necessary to EFFECTIVELY address the obvious apparent CORRUPTIONS in Congress to a point that "the people" can change these problems. I haven't heard of any re-call election movements or other actions to pressure for purging these INEPT, INCOMPETENT and/or "CORRUPT" Congressmen.
As I discern it, the solutions to our problems are: 1) effective, prudent and reasonable NEW regulations to: a) require full disclosure and integrity of corporate financial reports, b) implementation of effective oversight of compliance with the regulations; 2) the prohibitation of "creative accounting practices" that have been the basis of so many frauds; 3) mandatory financial audits of all major corporations AND Congressmen by certified audit firms, with changes in audit firms every two years; 4) aggressive indictment, prosecution, and the fining and imprisonment of those who significantly violate the regulations and standards.
The token fining of corporations and management personnel, without the "admission of any wrong doing", has effectively made the fines a cheap cost of conducting unethical and fraudulent business practices.
The costs of these solutions would merely be a cost of business; and the audits of Congressmen could be paid for by the federal government. This would certainly be much less expensive and disastrous than the cost of these types of economic debacles that we have incurred; and it should eliminate 90% - 95% or more of this type of FRAUD.
By ""apathy" of the people", I refer tothe lack of overall significant actions by the people to get these matters addressed effectively. If there isn't sufficient action by the people to effect changes, then that speaks for there being "too much apathy".
3-04-2009 @ 11:35AM
BHarrison said...
A basic problem is that too many of our Congressmen are substantially or exclusively controlled via the special interests, and the special interests also control BOTH the RNC and the DNC for nomination and selection of political candidates.
The special interests are controlling our entire political process. In my opinion, the Democrats use of "super delegates" was merely a ploy for the special interests to control the Democratic Nomination Convention voting. The "hanging chad" issue was used by the Republicans to manipulate the Florida votes, etc., etc., etc.
The American people are hampered by a lack of an organization or organizations to channel or focus their pressure for changes. To break this political stangle hold, we need at least three or four political parties to empower the American people. The 3% fo the population who reportedly own 90% of the wealth of our nation surely have sufficient monies and will attempt to overly influence any political party; but the diversity of political parties would empower the American people substantially more than merely having only two political parties.
I have been a registered Republican for over 38 years; but I vote for what I think is in the best interests of our nation and the American people as a whole. I would switch political parties if it will make a difference. We cannot effect change by election of the lackeys of the special interests groups.
The American people have lost "their voice and influence" in American politics. Our economy was undermined by Congress "selling out" to the special interests for their exploitation of our economy and our FIs and corporations.
Even now, Congress is NOT demanding that the FIs andthe corporations reveal where and how the BAILOUT MONIES monies are being . . . and WHO the individual specific companies and individuals are who are receiving these HUNDREDS of BILLIONS of dollars.
This was just being discussed on the Diane Rhem show on NPR - National Public Radio. EVERYONE is upset and angry by what is happening, and the unaccountability of it all . . . and yet, Congress is not demanding that this information be disclosed.
Alan Greenspan's book, The Age of Turbulence, should have been named The Age of CORRUPTION.
The systemic economic problems lie in the systemic political CORRUPTION problems; and everything else flows from that. FIs and corporations could not have committed the FRAUDS that they committed, unless Congress had tacitly enabled and allowed that to ovvur during the LAST EIGHT YEARS.
The American people need a voice and influence over Congress in regard to these matters. Being "angry" doesn't do any good, if one cannot take actions to correct the problems. Congress is indifferent to the "best interests"and the opinions of the American people.
While I can understand and appreciate the need to keep our economic infrastures from collapsing, many of these massive FIs and corporations could be broken up and reorganized via Chapter 11, if necessary. Admittedly one problem of that is that the attorneys have become expert at maximizing their fees and expenses in bankruptcies to the detriment of the stockholders and creditors; and they would exploit the reorganizations to the maximum . .. but that is another problem that would need to be addressed.
As Shakespeare said: "Oh what a tangled web we weave when we first practice to deceive. . ."
Personally, in my opinion, Congress has been and still is the BIGGEST CULPRIT in all of this. the American people need a means to effect changes . . . and it isn't going to be accomplished via either the Democratic or Republican parties.
It appears that the American people are going to have to "take to the streets" and pound on the doors of their Congressmen's offices . . . nothing else has worked to date, has it?
3-04-2009 @ 12:13PM
flipspiceland said...
@Bharrison:
If the people aren't going to do the simplest thing, voting out of office their senior bandits,
why would they take to the streets which is infinitely more inconvenient, and interrupts "The American Idol?
3-04-2009 @ 1:34PM
Sheldon L said...
BH -- thanks for your further elucidation.
3-04-2009 @ 4:13PM
BHarrison said...
As noted in the article in regard to the politicians: "Nothing takes a higher priority then that; it's called political self preservation."
It appears that the American people who prudently lived within their means need to take a lesson from the politicians in regard to "SELF PRESERVATION" . . . it is boiling down to "them or us". Which will it be?
================
And . . . to flipspiceland: Isn't that what would be termed or considered to be "apathey" on the part of the majority of the American people? I think that you made my point about "apathey".
3-12-2009 @ 8:35AM
flipspiceland said...
Apathy is non-caring attitude. The fact that these people vote, means they do care but what they care about is skewed, irrational, and self-defeating.
As one Steelworker said when Pat Buchanan visited Wheeling, W.Va. during his campaign years ago, "He may be a son of bitch, but he's OUR son of a bitch". Referring to the politician who is now serving a prison term for bribery, kickbacks, and other assorted corruptive practices.
A friend of mine only votes for Kennedy in Massachusetts because as bad as he may be for the country, he returns $1.10 for every dollar that residents of Mass. paay in taxes , due primarily to his seniority in the Senate.
This activity, not apathy.