Tuesday, December 4, 2012

WIZARDS?

As hubris grows in a society out of control, many lose hope that any credible solution can be achieved without great sacrifice to the populace. Each of us individually will have to arrive at our own conclusion, but I want to share a personal story on what the country is up against with our leaders in the corporate world.

The wizard of nothing
Seven years ago a corporation that my company worked for had a CEO that essentially signed my paycheck. The CEO had been at this company for about 12 years and over that time I had crossed his path a number of times but I did not have a close personal relationship with him. I enjoyed dealing with him "from a distance"and he seemed to like me. I felt him to be a man of limited intellect, but felt he was relatively honest at least as far as a CEO could be. Even though he was directly responsible for my earnings at that time, I was an independent contractor with a group of partners and maintained an ever so slight degree of separation from his decisions.

One day he made a decision that placed many professionals that worked under the umbrella of his corporation in jeopardy...essentially removing their independence and allowing a very invasive move into a virtual tyrannical control. I was surprised but not shocked upon receiving the edict from him that required our signatures (surrender of our privacy). I realized that his "policy" would not stand up in court, but the battle would be long and expensive. I maintained that one should never underestimate an individual in a position of power with limited intellect. They are sometimes your worst nightmare to deal with since they tend to be stubborn and when confronted with an extraordinarily terrible poker hand will go "all in".....which is EXACTLY what he did in this particular "policy".

The board of directors were puppets of his and in many respects were "controlled" with their own "relationships" that were profitable. It developed into a "Mexican Standoff" with the showdown at high noon in the OK corral. I knew that all the parties were going to be bloodied and possibly destroyed if the appointed showdown took place so I arranged a private meeting  with the CEO and two other individuals to serve principally as witnesses. The CEO tried to conceal his terror facing him in 24 hours when he would step into his own Waterloo, but rather than play games with him, I laid as many cards out as possible and asked him directly why he thought his strategy would be productive. As he answered and the dialogue began to be exchanged more easily it became apparent that he was terrified and knew he had blundered into his demise. He began opening up even more into his decision making and a very telling part of his thought process was disclosed. He wanted to know why my Partners had all taken a position against his "Policy" when all the other "independent" contractors had "supported" his policy. We had no financial interest in opposing his oppressive "policy". In fact we had everything to lose opposing him.  He even described what all of the financial interests were with the "other" players and how he understood their positions and votes. When I responded to his query with the answer, "it was purely the principle of right and wrong and what was best for the greater good"......his jaw dropped and he appeared baffled. He pondered and wrestled with that answer for what seemed like an eternity and you had the sense he NEVER believed the answer....yet there was NO other answer that he could muster. BUT he could not accept that in his world anyone had principles. THAT was his limited world. He did pull the "policy", and the war was canceled....but he never "learned" from his "near death"  experience. Surviving that near disaster made him eventually more arrogant and several years later a series of blunders made him the laughing stock of CEOs. THAT is the world of our corporate structure. Maybe not every CEO is as cognitively simple as he was and maybe not all corporations are corrupt. But this is at the heart of where our world is today. We are left only with what is "your selfish angle" or "what is in it for me" or "I've got mine now you get yours". It works only if there is confidence not CONfidence.  There is no trust on either side of the "game" now, and at its very heart there is nothing but darkness. gl players

21 comments:

  1. http://www.bloomberg.com/news/2012-12-05/bank-of-korea-raises-gold-holdings-as-central-banks-buy-1-.html

    central banks are buying...

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    1. yes...price suppression is necessary for them to exchange there dollar reserves for gold

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  2. Guy, thanks for sharing that. My friends and I discuss this subject all the time. There are people with morals but unfortunately for all of us, they don't occupy powerful positions. We are always asking how we arrived at this place in what seems to be a mere 30 or 40 yrs. I knew lots of people in high positions with integrity back then; now, not so much.

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    1. What is more amazing to me is the amount of cognitive dissonance that exists within the executive suite due to the natural selection process of choosing the "fraternity president" that Carl Icahn referred to so accurately when he described how much the CEO position has devolved over the recent decades. The process will implode

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  3. things that go hmmmm

    http://stockcharts.com/h-sc/ui?s=SSRI&p=D&yr=0&mn=10&dy=0&id=p51110583333&a=242315566&listNum=1

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    1. they brought it right off the bottom channel as if they were timing the news........hehehhehehe

      1:10AM Silver Standard reports positive feasibility study for pitarrilla and increases reserves by over 400% (SSRI) 13.31 : Co announces the results of the Feasibility Study for its 100% owned Pitarrilla Project located in the State of Durango, Mexico. The Feasibility Study was completed by M3 Engineering and Technology Corporation and Silver Standard.
      Feasibility Study highlights:

      Silver Mineral Reserves: Probable Mineral Reserves of 479 mln ounces of silver, ~5.2x the 91.7 mln ounces reported previously.
      Long-life and high production: A 32-year project producing an average of 15 mln ounces of silver per year during the first 18 years of production.
      Robust project economics: An after-tax net present value of $737 mln at base case metal prices and $1.7 bln at spot prices. An after-tax internal rate of return of 12.8% at base case metal prices and 21.2% at spot prices.
      Capital expenditures: Total construction costs of $741 mln, including $157 mln of pre-production operating costs and $131 mln of pre-production revenue.
      Low technical risk: Utilizes standard truck-and-shovel open-pit mining methods and well-established flotation and leach processing meth

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  4. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/5_This_Is_Going_To_Require_30_-_50_Of_Global_Silver_Production.html

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  5. I am watching closely to get a confirmed buy here on miners. according to Droke we will watch for a close two days in a row over the 15dma of the HUI and XAU......we have fulfilled some very important characteristics of a very important bottom...but the intermediate trend remains down here until the 15dma is fulfilled

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  6. look at MMR. MMR tanked 30% last week, and today it's up 80% from the aquisition by FCX. I gather the big money ran the stops on MMR last week. and in the process bought the shares on the cheap, knowing the aquisition was coming. most likely , as the "smart guys" we're buying MMR on the cheap, they probably were also shorting FCX at the same time. I know this is crazy talk, but it's just a theory. I guess one could say, MMR tanking 30% just before it was going to be acquired was just a coincidence.

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  7. Psychologically, they are just wearing us out. Now GS says "oops, the pog won't be $2000 but $1800". So not sure whether we'll get more s-t down due to shorts piling in.

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    1. yes they are but not me. I will hold and if for no other reason than I don't trust their next move.....even though I believe the next leg up will be controlled....I still don't trust what they will do to individual positions

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  8. Replies
    1. sounds like a bear market to me sista......hehhehehe......they are very selectively picking up the next winners here....accumulation under cover of an intermediate correction from the may lows.......double bottoms and 61.8 retraces in order....BUT those moves are NOT retail buyers

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    2. BRD is up 40% from its April low and has maintained a nice channel

      http://stockcharts.com/h-sc/ui?s=BRD&p=D&yr=1&mn=0&dy=0&id=p33592935461&a=272797846&listNum=1

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  9. cycc....cycc...cycc...heading to 11 if it gets thru volume hole here

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  10. Wow, what an impressive turnaround. Who knew, lol? Thanks honest, bought a little arna.

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  11. must read

    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/5_Rosen_-_Goldman_Sachs_Call_Ridiculous,_Gold_Ready_To_Rocket.html

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  12. short squeeze on AAU...yum yum....wish I owned more

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  13. I wonder if SVM is going to fall back to 5 dollars again. If so, it will be the 4th trip since May.
    I'm not discouraged--just pay me my dividend every 3 months.

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    1. http://stockcharts.com/h-sc/ui?s=SVM&p=D&yr=0&mn=6&dy=0&id=p90140268581&a=242549376&listNum=1

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