Robert Waldmann on CEO diseases
Lifted from Angry Bear Robert’s Stochastic Thoughts, and Brad Delong and Naked Capitalism beat me to it…oh well:
I have always assumed that Romney must be smart, because of the way in which he acquired great wealth. Yes he was ruthless and dishonest (the real scandal is what is legal). But there are lots of greedy ruthless dishonest people and the vast majority are no where near as good at it.
But he’s campaigning like an idiot.
Affirmative action sometimes puts some people in very uncomfortable situations — admission to a ruthlessly competitive University based on the assumption that a student’s potential exceeds academic performance so far (due to say come on being taught at school in Malay-Indonesian for much of one’s childhood) puts gigantic pressure on some people. One reacted by acquiring work habits and self discipline I can’t even dream of.
Being sole shareholder chairman of the board of directors CEO and President of a company can put people in a too comfortable position — surrounded by flatterers and able to settle all debates by authority. I suspect that this can lead to an erosion of the ability to think critically. Romney seems to think that he still has the power to settle debates just by saying they are settled. If so he can’t campaign or govern.
How many CEOs have ever gone on to be successful at anything else ? Unless you define being a CEO as success by definition (as we do) how many have been successful CEOs ? The only standard of comparison is other CEOs — if they are generally incompetent because of vanity and lazy brain syndrome how would we know. Is there any evidence against the wildly speculative hypothesis that the vast majority have lost their ability to think straight, because of years of flattery
They are misinformed at best if not deiseased.
US CEOs Call for Action to Reduce Federal Deficit
http://www.cnbc.com/id/49514249
The results of that action have not been good for business:
1817-1821: U. S. Federal Debt reduced 29%. Depression began 1819.
1823-1836: U. S. Federal Debt reduced 99%. Depression began 1837.
1852-1857: U. S. Federal Debt reduced 59%. Depression began 1857.
1867-1873: U. S. Federal Debt reduced 27%. Depression began 1873.
1880-1893: U. S. Federal Debt reduced 57%. Depression began 1893.
1920-1930: U. S. Federal Debt reduced 36%. Depression began 1929.
1998-2001: U. S. Federal Debt reduced 9%. Recession began 2001
2004-2007: U. S. Deficit Declined 61% (from $413B to $160B) Recession/depression began 2008.
What basis is there for your statement that Romney was ‘dishonest’ in the acquisition of his wealth??
Romney snake oil salesman? Say it ain’t so!
Don’t feel bad. I got the phrase CEO-disease from Brad and he ascribed it to me #memories.
Not dishonest in the sense of breaking the law, but dishonest in the sense of not respecting norms which are standard in the field.
I admit that my statement is based on the accusation by one counter party who might just be envious. He is someone who works in private equity finding private buyers for firms or (more often) divisions of firms. He says it is all done discretely with consultations with possible buyers which identify the buyer willing to pay the most. then the others are told they have been outbid. Then the final deal is negotated.
The author of the op-ed wrote that Romney systematically made high bids before the other potential buyers dropped out, then lowered the bid. This caused the author of the op-ed to decide to no longer do business with Romney.
Importantly the author says Bain isn’t like that anymore. Oh look, the damage to Romney’s reputation cost him and Bain nothing because he went off to Olympics then politics. This is all legal, but I call it dishonest (maybe it is just smart strategy monetizing a reputation which isn’t needed because of a planned change in field).
I can’t find a link.
Also Romney was sole shareholder of Bain Capital. Bain capital was basically a shell with the firms owned by limited liability partnerships set up by Bain and managed by Bain employees. For this reason Romney was made sole shareholder probably without having to put up much money. Then when he was doing the Olympics and (he now claims) not managing Bain, he kept the share and the position. It would appear that he decided to use the legal authority which had been granted to him for little to demand a lot of money for that share, using the fact that he had power over Bain hiring and firing.
I’m not sure this happened (evidence even weaker). I consider this dishonest as it is based on not respecting the informal understanding that the sole share of Bain Capital was a statement that he would manage and not … well ownership of a valuable firm.
“surrounded by flatterers and able to settle all debates by authority. …seems to think that he still has the power to settle debates just by saying they are settled. If so he can’t campaign or govern.” haha you seem to have forgotten that Obama has become the same way and it became so evident in the 1st debate that this was true. Suddenly not bolstered by his yesmen or teleprompter, he became a confused, whimpering child. yes he adjusted and rebounded nicely but the damage was done and we knew the emperor had no clothes.
uss green
i did not hear any whimpering from Obama. seems to me you heard what you wanted to hear.
i actually thought obama “won” the first debate, but i wondered why he was not more aggressive in pointing out Romney’s lies.
and get this through your thick head: i will not vote for Obama. but a country that votes for Romney will get what it deserves.
and oh yes for what it is worth, Obama, like all bosses is at the mercy of his advisors. a good boss, very rare, is good at picking “honest” advisors, but in general the boss is not the “expert.”
Mitt Romney made an incredible amount of money in a very short time.
The only thing that I have heard of family money was the $60,000 he and Ann had in college from “stocks.”
Has anyone ever looked up the probate court records of his mother and father and found out how much, what and when he inherited?
Mitt Romney deeds, not words. http://www.newsday.com/opinion/oped/murdock-the-real-mitt-romney-s-good-deeds-1.4153687
I guess I would like to see a comparison of Obama/Biden in a compassion-fest.
Good thing Romney was really rich and could save Melissa Gay, his business partner’s daughter. I wonder what he’ll do for for all the little Shaniqua Gays, whose mothers and fathers work at Chevy plants in Detroit. They’d probably be living on the fallout of that planned bankruptcy.
For Anonymous on inheritance. I believe Romney gave his inheritance to the LDS (mormon) church. I’m pretty sure this explains why he says he inherited nothing. Technically he inherited but then he gave the money away immediately.