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Posts Tagged ‘finance’

The administration of Barack Obama, heavily supported by his minions in Congress, Nancy Pelosi and Harry Reid,are preparing to perpetrate the greatest tax sleight of hand ever upon American taxpayers. Unlike the tax cheats that Obama has selected for cabinet posts, their actions will be one of commission as opposed to omission as per the example of Secretary of the Treasury Timothy Geitner.

The Obama administration has been very forthcoming about their desire to engage in class war in America by targeting the top 5% of income earners for additional income tax while “reducing” the tax burden of 95% of Americans. It is difficult for me to accept, that no matter how far to the left an individual’s political pendulum swings, that educated Americans believe they will receive a tax cut from the progressive fascists currently governing our country while they are enacting into law budget appropriations that will bankrupt the nation.

As the American Clean Energy and Security Act of 2009 (ACES) slithers through the house under the guidance of Henry Waxman the progressive Democrat, who Chairs the House Energy and Commerce Committee, the House, under the explicit direction of the Madam Speaker, with selective recall, Nancy Pelosi, is committed to a bill designed to provide a national health care bill to a President who is anxious to sign it into law, no matter the real cost to American taxpayers.

Among the proposals being considered to fund health care reform will be taxing the health care benefits currently enjoyed by millions of Americans as a benefit from their employer. Members of the House and Senate, have placed the prospect on the table of taxing these benefits at the very least among “high” income earners. In addition a plethora of  additional vice and health taxes may be imposed on the usual suspects of alcohol and tobacco, but also on soft drinks and other high sugar content products. A sweet tax is on its way. It will provide the government another opportunity to impose its will on a public who, per our government, are unwilling to make healthy disciplined choices as to what they deem to consume.

Unlike the taxes imposed upon the colonies by a British monarch, these taxes will be imposed upon us by our representatives to satisfy a progressive fascist agenda that is committed to transforming America into a Eurotopian socialist state that assumes a place of equality in the world as a nation that is compliant to the wishes of the world’s competitive economies. We as good citizen’s are expected to roll over and accept the judgement of “our” elected representatives as they enact legislation and policies that are in the best interest of our people.

America, long the safe harbor of entrepreneurial endeavor and individual freedoms is in peril at this time, on this day, due to the strengthening  grip of progressivism around our nation’s throat. We are being strangled by those who though they may be of good intent are enacting ill will upon our nation. They suffer from a progressive ignorance and fail to understand the most basic of economic principles and the importance of assuring the rights and liberties of individualism. They are a product of group think that have been well honed by our educational institutions and a compliant media only too willing to promote the progressive agenda.

Oppressive taxation will not yield the societal benefit required to sustain our standard of life, but rather will deter incentive, cause capital to flee and impose further hardship upon those unable to compete in a global market. Barack Obama is correct when he states that we are at a crossroads in our nation’s development. The progressive road that Barack Obama has chosen for us is the easy road to travel upon. It is the most popular road.  It is the shiny new green road. It is the road for which we have sacrificed our fundamental principles and mortgaged our future. However, if we continue on the progressive path that we are on, in the coming years we will recall the words of the poet Robert Burns and wish we had taken the road less traveled.

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We are fascinated by the alleged strong arm tactics the Obama administration allegedly introduced into their negotiations with senior debt holders of the Chrysler Corporation. A representative of the administration, car czar Steve Rattner, allegedly threatened an official representing Chrysler creditors. As reported on Fox news, Thomas Lauria, an attorney at White & Case, one of  this nation’s most prestigious law firms, Rattner suggested to an official of Perella Weinberg Partners, an investment bank, that the Obama administration would destroy the firms reputation through the press, if it failed to comply with the administrations wishes.

The Obama administration has denied the allegations by Lauria. Ceo4adayfinds the allegation by Mister Lauria, to be credible based on our belief, that the arrogance of this President and his administration may be unmatched in the history of our nation. We do not believe that the Global Practice Head of the Financial Restructuring and Insolvency Group at White & Case, with 130 lawyers in 20 nations reporting to him, would jeopardize his reputation or the reputation of one of the world’s premier law firms by lying or misrepresenting the event as reported.

The Obama administration has a singular goal with respect to the Chrysler bankruptcy. Their goal is to protect and where possible expand the interest of the United Auto Workers. The UAW, represents the largest special interest group in America, labor unions, which peeked in the 1950’s, when 36% of Americans were union members and have been declining as a percentage of our national labor force to approximately 10% toda .  However, the influence the labor unions have purchased with Barack Obama and the Democrat party, rather than decline, has expanded at a disproportionate ratio. The alliance between the progressive left and labor has formed the nucleus which funded the Obama campaign and provided the agenda for the inexperienced Barack Obama.

The Obama administration is intent upon restoring the American labor movement to the place of prominence it held in its golden era. Barack Obama in the past week indicated that the loss of manufacturing jobs in this country would not be an issue if WalMart would pay employees $25 per hour. A mission no doubt that he will continue to work toward in conjuction with his union supporters.

We should not be surprised by the allegation of  threats by the Obama administration to further their agenda. The administration since the inauguration has been focused on control. We have a President, who though he states he does not want to run the auto companies or the banks, relishes the role of shareholder in chief as he seeks to transform the auto industry to green favored electric cars produced by union owned companies.

The tactics deployed by the Obama administration in their desire to protect the UAW are nothing less than the execution of an administration agenda that equates to progressive fascism wrapped in the pageantry of the Presidency.

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John Galt, the quintessential symbol of individualism and the hero of Ayn Rand’s Atlas Shrugged is making a come back as a result of the socialist egalitarian policies of Barack Obama and the oppressive bureaucracy that Obama’s expansive government is certain to portend. Galt, a fictional character  represents the “men of the mind” that elect to strike, rather than provide their goods and services or intellectual contributions  to a society or government that fails to appreciate their contribution and burdens them with restrictive bureaucratic intrusiveness.

The novel which was published in 1957 and celebrated individual rights and the market economy would seem to be an appropriate read for the generation of progressive fascists that are now populating many western governments and have assumed power in the United States.

 Barack Obama has been touring Europe touting the changes in America. His diplomatic outreach to Europe, includes the following statement “In America, There is a failure to Appreciate Europe’s leading role in the world”.  Perhaps President Obama should reflect on America’s leadership in the world.

America is an arrogant nation. Its arrogance has been earned over time, by the might of its military, as it prevented the collapse of Europe through world wars one and two and orchestrated the collapse of the Soviet Union to allow freedom and democracy to develop inside the former iron curtain that divided west from east. Its’ arrogance has been further earned by the quality and depth of its entrepreneurs that created the most dynamic economy in the history of the world.

America is arrogant and as a nation should hold its head high as it interacts with the world as opposed to being a nation of apologists. America should not be ashamed for preventing further terrorist attacks on its soil since September 11, 2001. Rather it should be proud of its sucess and embrace the methods that have preserved its security.

The American spirit is best when it is allowed to develop alnd prosper under the blue skies and bright suns of a leadership that recognizes the seminal role that America has played in creating an entrepreneurial, free enterprise culture that values the rights of individuals and promotes individual prosperity.The  government of Barack Obama seeks to restrict those rights, tax away incentives and implement collectivist solutions to social and economic issues.

Obama’s message to Europe is correct. America is changing. John Galt is hiding again.

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The political grandstanding and mock outrage from Congress and the White House over the AIG bonus payments is obscene. The entire country seems to be operating in a parallel universe where business and government have become so intertwined that politicians are actually determining how executives of private sector companies should be compensated. This is outrageous!

Shame on the AIG Board for authorizing  retention bonuses without the corresponding performance requirements that should have been included as the incentive criteria and shame on Congress and the Administration for becoming so involved in the private sector that they have the audacity to believe thay are capable of adding value to the private sector. The noise over the AIG bonus issue emanating from Washington and across the media is absurd and provides another distraction that foments the populist rhetoric that provided the platform for an Obama victory in the 2008 election.

The Obama administration needs to focus on the economic crisis and begin to govern while wrestling with a Congress, led by a euphoric democrat, Speaker ot the House, Nancy Pelosi and Harry Reid the Senate Majority leader. Neither of which appears to have the most basic understanding of business and free enterprise.

The AIG bonus issue, provides additional ammunition for a government that is intent upon posing limitations on free enterprise, to transform the American capitalist based economic system, to a hybrid socialist model in which the federal government will enact business practices that will continue to erode America’s ability to compete in the global economic environment and create a business model, in which bureaucrats create policy while the performance standards for American business continue to erode.

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The politicization of our financial system was a foregone conclusion once Congress approved the TARP fund. However, this morning’s predictable outrage at the $165 million AIG  executive bonus payout is a calculated over reaction by the President and his administration given that they are powerless to prevent it.

The President needs to demonstrate the proper outrage for the Congress and  the public given that the economy may require additional bail outs or stimulus as additional data and experience  become available in the coming months. It sickens all of us that a company like AIG which has received a $170 Billion from taxpayers, is able to pay out bonuses given their well publicized pathetic performance. 

Incentive bonuses, are a fundamental linchpin of executive compensation however, my experience has always been to include a clause which requires minimal performance objectives to be met by the corporate entity prior to authorization by the Board. This allows the Board of Directors to weigh in and assure that the interests of the organization as a whole, are aligned with those of  its’ executives.

The failure to include such a clause is, in the opinion of Ceo4aday, negligence on the part of the Board. It represents a failure by Board members to understand their fiduciary responsibility to shareholders. It requires a difficult decision to waive an earned bonus for an executive or associate that may have performed in an outstanding manner while the entity itself failed to meet its performance objectives. Those however, are among the decisions we expect Boards and CEO’s to make.

The mere fact that Barack Obama, Timothy Geithner and others in the administration and Congress focus on the compensation practices of AIG or the other recipients of TARP funds is a concern in the sense that we do not generally elect business leaders to serve our interests in Washington. Rather, the elected officials that inhabit Washington, tend to be professional politicians like Barack Obama, Nancy Pelosi, Barney Frank and Chris Dodd. We do not need to compound the ineptness already demonstrated by the management teams at many of these financial institutions with the additional ineptness of a group of Washington politicians.

These certainly aren’t the people we should entrust with creating compensation programs for American businesses. There have been some extreme abuses among select corporations and select executives however, the vast majority of CEO’s are focused on directing their companies toward profitable growth and work on main street not wall street.

This administration when they make outrageous remarks that are negative towards the business community are merely pandering toward populism and establish a tone that further erodes confidence in the economy. We have no doubt that the President’s remarks this morning regarding AIG did little to prop up the economy and could be viewed as nothing more than political theater which contributed to a market sell off, by reminding investors that we have an administration that continues to perceive the business community as suspect.

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The Obama administration announced today that they are intent upon providing additional support to small business as they continue to tout the stimulus impact of the recently passed American Recovery and Investment Plan of 2009. A criticism that Ceo4aday has long held with respect to the stimulus plan is that it focused far too much on entitlements as opposed to tax cuts and other business stimuli particularly, with respect to supporting innovation and entrepreneurship.

We continue to advocate the creation of the United States Office of Entrepreneurship to provide venture capital to qualified entrepreneurs to stimulate job creation and promote innovation. This independent federal agency would provide venture capital investment in small businesses as an alternative to existing capital sources. The Agency would become a minority shareholder in the funded enterprise while providing an option for the entrepreneur to buy out the Agencies interest within an agreed upon period.

We have suggested that the Agency be funded with a $25 Billion endowment and that the federal government reach out to private investors to participate on a dollar for dollar basis to provide an economic stimulus that will yield immediate results as entrepreneurs can begin to fund their innovative concepts.

Join Ceo4aday, as we call on Congress and the President to support American Entrepreneurship by funding the United States Office of Entrepreneurship.

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President Barack Obama, has become the cheerleader-in-chief of the American economy over the past few days and the market has noted the difference. The Dow was up over 9% this week after being battered since Obama took office. The President consistently addressed the economy in a negative tone since his election as he sought to lower expectations for his administration and referred to the economic crisis as a catastrophe that was the worst the nation has seen since the Great Depression.

This week the President’s tone changed and the administration trotted out Paul Volcker, the former Fed Chairman and Larry Summers, the former Secretary of the Treasury to support current  and floundering Treasury Secretary Tim Geithner. Geithner has come under increasing pressure as has failed to provide a detailed plan to address the toxic assets on the balance sheets of America’s largest financial institutions. Geithner’s failure to provide a detailed plan has contributed to additional uncertainty on Wall Street and the global markets.

Why the sudden change in tone? It may be that the administration has finally connected the economic dots between Wall Street and Main Street. With 109 million Americans invested in the stock market what happens on wall street has a dramatic affect on Main Street.  In an economy that has lost seven trillion dollars in the stock market and six trillion dollars in real estate valuations it was time for the administration to step out and begin promoting positive elements of the American economy.

No doubt, this President was bothered by a media that was beginning to question this President’s commitment to capitalism and the free enterprise system. A New York Times reporter last week asked the President if he was a socialist. The question clearly bothered the President as he called the Times back to clarify his response.

Ceo4aday has repeatedly commented on the importance of President Obama taking a more confident tone on the economy and believes that support for innovation and entrepreneurism should be among this administration’s highest priorities. The aggressive social agenda that the Obama administration is promoting can only be successful in an environment where the economy is robust. It appears from the administration’s action this week that they have been reminded of this by a nation eager to produce.

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