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To: TobagoJack who wrote (26470)12/23/2002 10:18:46 PM
From: elmatador  Respond to of 74559
 
Swiss economy is kaputt but people are piling money in Swiss Franc. It is the malaise that has been affecting the world economy for over 22 years. Countries without economic activity but attracting money vs. countries with economic activity but no money. No wonder the bust is here!!

Discredited Swiss have mountain to climb
By William Hall
Published: December 23 2002 23:23 | Last Updated: December 23 2002 23:23


What is wrong with Switzerland Inc? Not since the Swiss watch industry was nearly bankrupted by Japanese competition in the 1980s has there been so much soul-searching in the country, which has only 7m people but is home to an above average number of world-class companies.


In 2001, it was the shenanigans of famous names such as Sulzer, Kuoni and Vontobel, and the collapse of Swissair, the national airline, that dominated the headlines. This year, it has been former stock market darlings such as ABB, Zurich Financial Services, Swiss Life and Credit Suisse.

The steady flow of bad news led BusinessWeek magazine recently to write off the boards of most Swiss companies as "little more than rubber stamps, made up of the country's small, conservative, smug establishment".

It is an unfair description, but it is easy to understand how it has taken hold.

The fall from grace of ABB, the Swiss-Swedish engineering giant employing 146,000 staff in more than 100 countries, has been one of the biggest shocks to Switzerland's pride. Five years ago, it was one of Europe's most admired companies. Now it looks set to be broken up and revelations of the excessive pension payoffs for former top managers, led by Sweden's Percy Barnevik, have ruined its reputation.

"Switzerland was on a little cloud for many years," says Professor Stephane Garelli of the IMD business school in Lausanne. "Suddenly the cloud broke and we have fallen down to earth." The events of the last 18 months had destroyed much of the trust that the Swiss people had in their business community.

Over the last year Zurich Financial Services, Europe's number three insurer; Swiss Life, the country's biggest life assurer; and Credit Suisse, the second biggest bank, have posted heavy losses, slashed dividends and dumped top management.

Credit Suisse's Lukas Mühlemann and Rolf Hüppi of ZFS had come to symbolise a new generation of more daring and shareholder value-oriented Swiss managers. But the long bear market exposed their over-aggressive expansion strategies, and both men had to go. The downfall of Martin Ebner, once regarded as Switzerland's canniest investor and corporate governance champion, has only added to the gloom.

But it was the near-collapse of the 145-year-old Swiss Life, a pillar of the Swiss financial establishment, that probably did the most damage to Switzerland's corporate reputation. Revelations that most of its former top executives became millionaires though a secret fund that had access to Swiss Life's choicest investments caused widespread public disgust. "The rather aggravating conservatism of past generations has given way, in some instances, to a new generation of managers who became quite flippant in terms of their prudential responsibilities," says Simon Marshall-Lockyer, an analyst with Cheuvreux.

However, Switzerland is putting its house in order. New corporate governance rules have been introduced and inter-locking directorships - which traditionally tied together companies such as Nestlé, Swiss Re, Credit Suisse, Swissair, and Novartis - are being unwound.

Switzerland is also addressing another problem - its relatively limited pool of home-grown talent. Jim Schiro, the new chief executive of ZFS, is an American; John Coomber, Swiss Re's new head, is British. Swiss boards now have a more international flavour than those of their European and US competitors.

The revelations of mismanagement, imprudent investments and corporate greed have certainly dealt a blow to the myths about Swiss managerial excellence. But the speed with which the business establishment rallied round to sort out the problems left by the collapse of Swissair, and the near-collapse of Swiss Life, underline an under-estimated strength.

Swiss Life is in much better shape than it was six months ago, as are Credit Suisse and ZFS. The jury is still out on ABB, but even if the company is broken up it is likely to spawn at least one new Swiss-based world-class group. While Switzerland's critics have focused on the problems of a few established blue chips, they tend to overlook the long-term success of companies such as Novartis, Nestlé, Roche and UBS, plus the arrival of a new generation of blue chips such as Syngenta, Adecco, Serono, Givaudan and Ciba Specialty Chemicals.

The events of the past 18 months have certainly tarnished Switzerland's corporate reputation. But the long-term ingredients of its commercial success - cheap capital, low taxes and flexible management - remain intact. Corporate Switzerland may be down, it is not out.



To: TobagoJack who wrote (26470)12/24/2002 12:17:07 AM
From: energyplay  Respond to of 74559
 
Many Iranians here in the Bay Area, even more in Southern California. Lots of them voted in the Iranian election about 2 years ago. Persia civilized for 2,500 years....

Wonder if the break between Germany and the U.S. has something to do with the Euro / dollar isssue as a background...or potential German economic dominance of
Central Europe. I sense there is a sub-text which is public...

I personally would like gold to come down so I can reload some more Newmont.



To: TobagoJack who wrote (26470)12/24/2002 1:58:23 AM
From: elmatador  Respond to of 74559
 
What did the tornado say to the coconut tree?

A. Hold onto your nuts, this is no ordinary blow job.

Tie yourself to the coconut tree this isn't going to be ordinary blow job!!!



To: TobagoJack who wrote (26470)12/24/2002 4:47:00 AM
From: elmatador  Read Replies (1) | Respond to of 74559
 
Where the money to wage war comes from.

During the Falklands War it was suggested that the higher premium the insurance policy holders would pay would cover the costs the UK paid for the war. Money out there, but money -through the Lloyds of London- in there

In this case of an Iraq war where the money will come from? I can see only losses: Oil higher prices benefits all producers but hurts economic growth. Just for illustration sake: 911 wiped out 40 to 60% of the value of every airplane lese contract.

Anyone could tell where there is money to made on this Iraq war?



To: TobagoJack who wrote (26470)12/24/2002 7:29:54 AM
From: smolejv@gmx.net  Respond to of 74559
 
>>but I do believe 2003 will be interesting on this thread, the endless cocktail party<<

It it not endless waiting in an airport lounge? Otoh, United went below radar level and as a replacement, arain check so to say, to fly (instead of being crowded in some 737 seat) as a navigator on some ME mission should be fun. I'll even take a B52 assignment - have previous experience, saw Dr Strangelove twice in 02.

RegZ

dj



To: TobagoJack who wrote (26470)12/24/2002 1:42:36 PM
From: Maurice Winn  Read Replies (2) | Respond to of 74559
 
<I am, by nature, not much of a ‘maximally intrusive’ interventionist, believing more in leveraging other available options and resources, because it gets less tiring, thus more sustainable, even as it allows more flexibility over a longer elapsed time, allowing deliberation, experimentation, and reflective observation.>

Jay, I agree. I expect it's more effective to bribe their children. Unfortunately, part of the problem seems to be that when the children are bribed, then rejected after their attempts to join the light side, they become belligerent, feeling betrayed, and plunge headlong into the culture they initially rejected.

I suppose it's not much different from John Walker Linde and Timothy McVeigh and Ted Kaczynski, home-grown terrorists. Also, the frequent mass murders at school or work are much the same - attempts at acceptance, followed by alienation, anger, revenge.

foreignaffairs.org
<Much has been said about the middle-class origins of most of the September 11 hijackers, rebutting the popular notion that poverty and humiliation can explain terrorism. Benjamin and Simon take the analysis further, providing poignant insight into the "half-baked" men of the Muslim world. They are not scheming against the West out of isolation and ignorance; they are instead motivated by failed or futile attempts to interact with the West. Some of bin Laden's followers had hoped to flourish in Western nations but failed to thrive there and were then susceptible to recruitment. Others came with a political agenda and lived a double life until mobilized by their al Qaeda masters. The authors show that exposure to the West was somehow a damaging experience. Some terrorists were religious by upbringing and felt compromised by the looser mores of the West, others tried to fit in but were rebuffed.

Muhammad Atta, the Egyptian-born ringleader of the September 11 attacks, was a telling case. He studied in Germany to avoid the fate of his unemployed and alienated compatriots back home, and he tried to bridge his two worlds by writing a thesis on the conflict between tradition and modernity in the Syrian city of Aleppo. To understand him, Benjamin and Simon indulge in a little amateur psychoanalysis: "At some point ... he had a brush with temptation; perhaps he felt he had succumbed. Whatever touched him, he identified with the West. It might have been as simple as a personal desire to be part of the West that caused him to feel contaminated. His repulsion was powerful, and he felt somehow humiliated."

After describing the history and motivations of al Qaeda, the first half of the book ends with a chapter titled "Fields of Jihad."
>

Americans need to ask not just "Why do they hate us?" but "Why do we hate us?" The answers to both seem to stem from similar causes.

More here: Message 18357745

The point is, rather than reject, alienate, attack and be attacked in Iraq and North Korea [and China in due course], it would be better to use the magical elixir of cdma2000 phragmented photons to create peace, light, harmony, happiness, health, prosperity, long life, love and contentment.

Bit by bit, even Saddam would be seduced by the enervating emanations of cdma2000. He and all belligerents would be drawn into a soporific state where their worries, angers and nightmares would evaporate into pleasurable dreams, good will to all the world, happiness and contentment. Think reflexology, beach, sunshine, warmth, troppo harmony and happiness. Lovely girls and curling waves, shining green leaves ... no sniper scopes ... none of the madness, anger, confrontation, fear and destruction.

Already, ElMatador is happily ensconced in Bangkok, building CDMA networks to create the magical effects in Thailand. He has come over to the light side. Message 18369931

Merry Xmas, peace, light, harmony, health, happiness, longevity, prosperity, love, contentment and cdma2000 to you and all the world. May your sheepish year, 2003, be a cuddly, woolly delight.

Mqurice