Risk Rap

Rapping About a World at Risk

No Transparency from Corzine

Whats on Corzine’s Agenda?

Gov. Corzine is calling a meeting at NJIT of New Jersey’s best minds to deal with the economic crisis. The meeting will be closed to observers and to the public.

Corzine should open up a window of transparency. All these closed door meetings only serves to estrange the government from the public trust. Remember Cheney’s closed door meetings and the role it played in formulating the nations failed energy policy. All American’s paid dearly for that one.

The economic crisis will seriously effect state and local governmental institutions ability to fund and provide services. Its amazing the degree of involvement governmental agencies and officials are stepping in to manage the crisis. Mr. Cozine’s Goldman Sachs pedigree will serve him well. It seems the collegian club of GS alums are in control of everything.

Is Corzine meeting with friends to carve up state regulated banks and insurance companies that are on the brink of insolvency?

Is Corzine discussing the closure of the public school and transportation systems because the state has cash flow problems?

Is Corzine discussing the seizure of state pension fund assets to fund the current cash flow needs and further deplete the pensions assets?

Is Corzine finalizing a deal on the sale of the NJ Parkway, Turnpike, The Port Authority and the State College & University system to a syndicate of private equity funds lead by the Chinese Investment Corporation and other large Sovereign Wealth Funds?

We don’t actually know. Thats why Mr. Corzine needs to provide a little transparency and let the citizens of New Jersey know whats going on and how it affects them.

Risk: transparency, accountability, public trust,

Music: The Rays, Silhouette on the Shade

Advertisements

September 22, 2008 Posted by | China, credit crisis, government, pop, private equity, sovereign wealth funds, taxation | , , , , , , , , | Leave a comment

Buffalo Bob vs. Zbigniew Brzezinski

Today I woke late and loitered in bed a bit. I was flipping back and forth between Zbigniew Brzezinski on Morning Joe and Buffalo Bob on Good Morning America. Under normal circumstances I would not have flinched from my attention to ZB. He was-as usual- great this morning and spot on concerning the precarious world situation. But I caught wind that GMA was airing a tease for this evening’s 20/20 show. They were interviewing a Millennialist Buffalo Bob from the House of Yahweh Compound in Texas. This prophet was prophesying that nuclear war will break out in 6 days! Now that’s a tease. A must see. Sorry ZB.

After this great news and a quick review of this morning’s local paper, I wanted to rush to my computer to blog on a few news items. But pressing matters of commerce took precedence and I would have to pass on my daily pontification and as the day progressed the economic and political news seemed to deteriorate as the heat and humidity began to rise to uncomfortable levels.

The Record (the paper of record for Northern New Jersey) led with a headline about Continental Airlines rising financial difficulties and it’s need to cutback on flights, fleet and jobs. The slow economy and rising fuel costs are blamed. This is hardly a shock to anyone who follows business news. Ever since I can remember the airline industry has been in perpetual difficulty. It is really incomprehensible to me how a business straining its capacity to accommodate customers has never been able to create an industry that is consistently profitable. Not even close. What’s even more incredible is why investors put their capital at risk in a business that has proven its inability to make a profit. That includes legendary capitalists like Carl Icahn and Julian Robertson. The later the iconic founder of the Tiger Management hedge fund had to close the doors to this storied fund due to his oversize position in US AIR.

Does anyone remember, Braniff, Eastern Airlines, TWA and PAN AM? Great bands all now happily camped at the top of the corporate scrapheap.

Can anyone say sustainability? The airline industry as now constituted is a non-sustainable industry. As its contribution to the global carbon footprint needs to be accounted for as a cost of doing business and remediation funded through carbon credits or cap and trade futures it will become more so.

The next story from this morning’s paper to catch our attention was the reminder that the State of New Jersey’s unfunded pension liability is approximately $25,000,000,000. Though some might consider the sum a rounding error in the federal budget deficit or a small accounting oversight in a procurement over billing for Mr. Bush’s War, the deficit will need to be addressed through some hard measures and demonstrates the absolute fallacy of the wonderful effects of the pandering Republican mantra of tax cuts. Baloney! The bill comes due sooner or later and I suspect that I’ll be getting a dunning message very soon.

Maybe we can sell the NJ Turnpike, Rt. 80 and the Garden State Parkway to a group of Chinese Private Equity Funds. And while we’re at it, let’s throw in our public school system, township libraries and local police forces. I would feel very comfortable having the Red Army police the streets of my community and enforce the law for all ez pass violators.

Next story in today’s Record led the Local section. The Essex Street Bridge that spans Rt. 17 has been closed for some time. It has choked off access to local businesses and they may be forced to close. This is a story about eminent domain, crumbling infrastructure and the pressing need for business people to be mindful of facilities risk and to practice risk management to mitigate the negative effects of these events. Fortunately our firm offers small business managers the Profit | Optimizer which helps to anticipate and plan mitigation initiatives if these events occur.

The Labor Department employment report was released and indicated that unemployment was now 5.25%; the highest in many years. This slowdown is speeding up and I don’t perceive any sector leadership emerging that can begin to lead us out of this recession. This one could get ugly.

I had an appointment with a small manufacturer this afternoon. As I was returning from the call I learned that the DOW sunk 400 points as crude oil futures went limit up at $11 on the remarks of an Israeli transportation minister who hinted that an air strike on Iranian nuclear facilities by the Israeli Defense Forces may be unavoidable. I shook my head.

Maybe Buffalo Bob knew something that Zbigniew did not. Or maybe the GMA marketing department is really a kick ass organization.

Maybe we are on the eve of destruction?

Do you think we’ll make it to the year 2525?

Risk: airlines, facilities, market, nuclear war, religion, serenity, pension funds, labor

June 6, 2008 Posted by | Bush, commodities, community, faith, nuclear, pop, Sum2, sustainability, war | , , , , , , , , , , , , , , , , , , , | Leave a comment