Andrew Ross Sorkin chronicles typical CEOs and hedge fund managers who liked Obama for all the wrong reasons, and now work against him for all the wrong reasons.
“Just last week, Paul S. Otellini, chief executive of Intel, said at a dinner at the Aspen Forum of the Technology Policy Institute that “the next big thing will not be invented here. Jobs will not be created here.”
“Mr. Otellini has overseen two big acquisitions in the last two weeks — the $7.7 billion takeover of the security software maker McAfee and the $1.4 billion deal for the wireless chip unit of Infineon Technologies. If he is true to his word, those deals will most likely lead to job cuts in the United States, not job creation.”
This is so textbook spineless it’s depressing. Wildly cash-heavy already, Intel will acquire, merge, and lay off, add the resulting boatload of cash, and then blame Obama for not jump-starting the economy. We’re back in the Reagan 80s. And, oh, by the way, Intel’s taxes are too high. NOT.
“(Daniel S. Loeb, hedge fund manager) is no longer betting that a chief executive will make his numbers; he’s betting on what legislation Congress will pass next.
“Perhaps our leaders will awaken to the fact that free market capitalism is the best system to allocate resources and create innovation, growth and jobs,” he continued. “Perhaps too, a cloven-hoofed, bristly haired mammal will become airborne and the rosette-like marking of a certain breed of ferocious feline will become altered. In other words, we are not holding our breath.”
Gosh, how clever and eloquent. Pigs will fly and leopards will change their spots, genius, when you bet on the CEOs who do make their numbers in this environment. Times are tough, and successful CEOs are few and far between these days, but you’ve just let all of the lame ones off the hook when you crybaby about how that mean Congress is holding them all back. CEOs with a spine think long-term stability, but your hedge fund can’t make fast money off of shorting their stocks.
“Many people see the collapse of the subprime markets, along with the failure and subsequent rescue of many banks, as failures of capitalism rather than a result of a vile stew of inept management, unaccountable boards of directors and overmatched regulators not just asleep, but comatose, at the proverbial switch,” he wrote. “It is easy to see why so many people have concluded that the entire system is rigged.”
‘Inept management and unaccountable boards’ are the result of thinking that ‘free market capitalism is the best system to allocate resources and create innovation…’ Unregulated U.S. corporations will hold themselves accountable if things go south? Brutha, please… And you don’t get to bitch about the ‘regulators asleep at the (oh, is that a proverbial reference, herr wordsmith?) switch’ when your knocking yourself out to make sure the switch is completely abandoned, or never installed in the first place. These guys are the college studs who want to bang as many co-eds as possible, and then marry a virgin. You can trust your husband, honey, just don’t bug him.
And a Krugman reaction:
“And you have to bear in mind that this comes after Obama has made immense efforts to placate the financial industry. There were no bank nationalizations; there were hardly any strings attached to bailouts; the financial reform bill was by no means draconian given the scale of the disaster. But Wall Street is furious that Obama might even hint that they caused the crisis — which he does, now and then, because, well, they did.”