Investor cynicism...
I think the degree of cynicism that is building toward not just the bankers, brokers & analysts; but also the regulators is well deserved.
What have we learned of late ?
You can not and should not trust the company, or anything it's management says.
You can not and should not trust the companies financial reporting.
You can not and should not trust the auditor's statements concerning the companies financial reporting.
You can not and should not trust the broker's analyst reports concerning the company, or their accounting.
...and here's a great example of why you can't trust the regulators, or the politicians either:
- did you see the Rep from La. Billy Tauzin during the Enron Congressional hearings mugging for the camera's & playing the role of savior of the people; going to sponsor legislation so employee's and investors would never lose their life savings, 401K's, or investments again ?
Well this is the same POS Billy Tauzin who is a Congressman from Louisianna who had a Public Company and the single largest employer in his home state - UC Lending (UCFC/United Co's Financial) go Bankrupt in 1999 and had senior management do the same damn thing that the Enron Exec's did... ie: freeze employee's 401K's - all the while they (Exec's) dumped and sold their individual stock... and this POS never said - "peep" about it...never sponsored any legistlation to keep it from happening again, even though this was the single largest employer in his home State of Louisianna !?!?!?
...but, when ENRON garnered NATIONAL attention; this POS couldn't get in front of enough Camera's !?!?
- puh-leeeeeeeeze
God gave us suspicion and FEAR - as a survival tool...sadly; when it comes to money - we don't listen to those little voices as much as we should.
CNBC today had a blip about the now infamous Jack Grubman of SSB Telecom infamy... he who now is the posterchild for being an investment banking rainmaker disguised as an analyst (to the tune of $20-$30 Million per year) - and how he at one time; had assigned a Target Price & cooresponding market cap to WCOM which was bigger than the combined market caps of GE, Boeing and DOW Chemical...
The next generation of MBA's are going to look back at this chapter in market history & investment banking as incomprehensible one day... no one will believe the complete vaporization of companies that once held $50-100 Billion+ market caps.
These Exec's and these companies will NOT be deterred by new regulation, or laws; let alone fines, or even the decimation of their own companies... they are not, have not and will not be...because they all walk with a slap on their wrist, minimal Club Fed time like Michael Milken, or get to walk and keep all the money...as shareholders pay the bill... there is no deterrent.
Let Exec's like Anderson's CEO, Enron's Jeff Skilling & Ken Lay, or that Fat Bastard CEO from Merrill; spend about 7 years in Rikers Island as some crack head's butt-buddy bitch... and things will change...sorry, to put it in those words; but that's the realities involved. |
