Showing posts with label Wall St.. Show all posts
Showing posts with label Wall St.. Show all posts

Wednesday, December 10, 2014

Falling Oil Prices, Wall Street and the End of the World

We live in constant tension between the urgent and the important. - Charles E. Hummel

The #1206 “fiction” series continues ….


Paul sat in bored silence as the instructor in front of the class outlined the classic urgency vs. importance matrix.  He looked down at the matrix in front of him and wondered why his boss insisted that he go to this stupid class.  He looked at his watch and realized that he needed to bail out of the class soon anyway in order to get in the line-up at the Apple store.  “The new phone is worth waiting in line for 18 hours”, he thought as he smiled to himself.

He sighed in boredom and looked down at the grid that the instructor was referring to.

Importance versus Urgency Matrix

When the matrix failed to keep his mind occupied, he turned his attention to his phone and thumbed through the news.  The headlines in his news app screamed about the price of oil falling to $40 a barrel, Wall St. experts fearing a collapse of the financial markets and something about Russia and its ongoing issues.

Thumbing further down in the news, he grunted when he read about the top ten threats facing the world.  “The usual suspects”, he thought as he glanced over probability analysis of nuclear war, asteroid impact, global climate change, and the like.  While seeing nuclear war as the number one risk in the list came as no surprise, he chuckled with amusement when he saw alien invasion listed as a potential candidate on the list.

His attention returned to the instructor who was talking about the appropriate place in the matrix into which each task of our lives should be placed but he quickly zoned out again as he thought of his new phone.  “It will be so cool”, he thought.


The President, the Chairman of the Joint Chiefs and a number of advisors sat around the boardroom table discussing the latest developments in Russia.

“And so, Mr. President”, said a young analyst, “We believe that the Russian economy will collapse in a serious recession around the end of the first quarter of 2015.  The sanctions are having their desired effect.”

“This is what we wanted, is it not?”, asked the President, “Won’t this bring them back to the bargaining table as we desired?”

“Possibly”, replied the analyst, “But there is one possibility we didn’t count on.”

“And what is that?”, asked the President, frowning at the thought that a possibility existed that he had not been briefed on.

“Well”, said the analyst, his voice quavering with nervousness, “There is a possibility that Russia may come out fighting rather than begging.”

“What do you mean?”, demanded the President.

The Chairman of the Joint Chiefs cleared his throat and stood up as the cue for his analysis presented itself.

“It’s like this, Mr. President”, he began.


The head of SETI, the Search For Extraterrestrial Intelligence, glanced over the report summarizing the month’s activities.  Despite the pleas of Stephen Hawking and others, SETI had moved forward with its plan to proactively beam a radio signal into space outlining the location of Earth and asking for intelligent species elsewhere to consider visiting Earth.

“Stephen Hawking and the rest of the naysayers are wrong”, he thought, “Anyone who could travel this far would have to be friendly.”


The clerk in the National Health Institute nervously reread the email in front of her.  It contained specific directions regarding a request to begin distributing radiation and suicide pills to major hospitals across the country.  The email didn’t explain why but did stress the importance of completing the task as soon as possible and to notify the sender when the task was complete.


Years later ….

Paul walked in deep thought down a quiet street on a crisp, fall night.  It had been about four years since he had taken the course on importance versus urgency.  While he had been insulted to be forced to take the course at the time, understanding the difference between what was important and what was urgent had finally dawned upon him and he had used the information to turn his Life around.  Once he saw the positive results that the mind shift had presented, he had been aggressively recommending to others that they needed to take the time to understand the principles.  He wondered if the world would ever understand what he had learned.

He sighed in contentment and gratitude as he thought about how his Life had changed over the last four years and he looked up into the night sky to say a prayer of thanks.  He was startled as the night sky began to fill with lights, far brighter and larger than any stars in the sky.


”Multiple targets”, announced a technician deep in the bowels of NORAD headquarters in Colorado.

“Targets confirmed”, affirmed another technician as she eyed her monitors.  “Confirm DEFCON 1 status.”

“DEFCON 1 status confirmed”, announced the supervising officer.  “Prepare to launch counterattack.”

Meanwhile deep in the bowels of the Joint Strategic Command Center in Yekaterinburg in Russia, similar orders were being given.


Just outside a small village deep in the middle of Africa, the villagers approached the small metallic-looking object carefully.  It was partially buried in the ground on the outskirts of their village, having been observed to have fallen there in a blaze of fire and a roar of thunder the night before.  Its door had fallen open on impact and the village chief peered tentatively inside.

The small room he saw was empty.  Seemingly suspended in the air on the opposite side of the room, strange symbols flashed in an unknown language.  As he watched, the pattern repeated itself several times and then winked out.

Scratching his head in wonder, he suddenly felt a shiver of fear and stepped outside.  Facing his people, he could only shake his head, having no idea what this object from heaven was.

It was the second strange thing that had happened in his village.  Earlier that day, all communication with the capital city had suddenly ceased and they were unable to reach anyone by phone or radio.


A hyperspace radio signal raced across the Universe, having just been transmitted by an emergency beacon on the surface of what was left of Terra.  The message it contained was brief:

Project to recommend deactivation of Terran nuclear weapons in exchange for advanced knowledge has failed.  Advance diplomatic ships destroyed.  Nuclear defense systems on Terra have been deployed.  Message ends.

To be continued.


© 2014 – Harry Tucker – All Rights Reserved

Background:

As a long time Wall St’er, I have been watching the market with interest for some time as analysts predict that it will continue to get stronger with no end in sight.  Unfortunately, with the economies of Europe, the US and China being artificially propped up, there will be an end to the bull market and it likely won’t be gentle.  I believe this end is now on the near horizon.

The potential for $40 a barrel oil is real and the ramifications are not well understood.  Fracking, the controversial technique that has helped the US reach energy independence, has a breakeven price of $42 a barrel.  Sustained valuation below this level brings uncertainty to the US and to the world.

A Russia that faces significant financial uncertainty could possibly respond in a way that we would not anticipate.  A major recession by the end of the first quarter of 2015 has been predicted for Russia, potentially causing them to come out fighting for survival.  Then we have this little ditty in the news as explained in the NY Times article “Pentagon to Press Russia on Arms Pact Violation” where we intend to use military options to protest their military decisions.  There is plenty of room for error there.  It is also important to remember that a nuclear war can be started by accident.  Google “Russian nuclear weapon launch by accident” to read about some sobering near-accidents in our history.

Regarding radiation pills, there have been rumors for years that some governments have plans to distribute radiation and suicide pills in case of nuclear attack.  Whether this be the stuff of conspiracy or is in fact true remain to be determined.  However, there is this interesting page on the CDC website regarding radiation pills.

As for SETI, it is indeed broadcasting a signal into space with the hopes that it will attract extraterrestrials.  They believe all extraterrestrials are friendly.  Stephen Hawking is on record as saying that we should not assume this and that such efforts may produce our doom.  No one can know if they would be benevolent or malevolent until they show up – if they do.

And as for an extraterrestrial invasion, there are certain elements within our own military that have implemented plans for a defense against an alien invasion while at the same time denying that such things are possible.

By the way, understanding the Urgent vs. Important matrix that Paul was bored with provides valuable insight into what drives your Life (or how your Life drives you).

All of these things provide a tantalizing opportunity for a little fun in this story but in the story there is a warning.

Do you think the world understands the difference between that which is urgent and that which is important?

As you think about this question, understand that some analysts think that the probability of nuclear war within the next five years is very high.

Now ask yourself the same question again.

Then ask yourself if you understand the difference.

And then ask yourself how you know.

Series Origin:

This series, a departure from my usual musings, is inspired as a result of conversations with former senior advisors to multiple Presidents of the United States, senior officers in the US Military and other interesting folks as well as my own professional background as a Wall St. / Fortune 25 strategy and large-scale technology architect.

While this musing is just “fiction” and a departure from my musings on technology, strategy, politics and society, as a strategy guy, I do everything for a reason and with a measurable outcome in mind. :-)

This “fictional” musing is a continuation of the #1206 series noted here.

Tuesday, July 29, 2014

Building Foundations on Rock or Sand

“Leaders in business and government, who fail to see the holistic interdependence of our planet, are destined to cause its demise.”  - Said Elias Dawlabani, Memenomics: The Next Generation Economic System

“Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock.  The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock.  But everyone who hears these words of mine and does not put them into practice is like a foolish man who built his house on sand.  The rain came down, the streams rose, and the winds blew and beat against that house, and it fell with a great crash.” - Matthew 7:24-27 (NIV)

The #1206 “fiction” series continues ….


On a hot, sticky summer afternoon in Manhattan, I stood on the corner of Wall St. and Broadway and watched idly as people hurriedly went about their business.  “Everyone going nowhere in a hurry”, I thought to myself.

Suddenly my thoughts were interrupted by a voice to my right as a deep, baritone voice said “It seems like everyone is in a hurry to go nowhere, doesn’t it?”.

Startled that someone had voiced the very sentiment that I was thinking, I turned to face the origin of the musing.

The tall, impeccably-dressed man facing me smiled amusingly, seemingly aware that his comment had startled me.

“You’re right”, I replied, “They are in total oblivion to what’s going on around them.  I guess ignorance is bliss after all.”

“Possibly”, he replied, pursing his lips for a moment. “However, even ignorance is fleeting. Every person is eventually forced to acquire wisdom or pay the price for their ignorance.”

“What do you mean?”, I asked.

“Would you walk with me for a moment?”, he asked.  Nodding my consent, we began to walk down Wall St.

“Imagine you have a dollar”, he continued as we walked slowly down the street.  “You lend me the dollar and I use it as collateral to borrow a second dollar so now I have two dollars.  I lend the two dollars to a friend and following the same process, he converts it into four dollars.  He buys food with some of the money and passes the rest on.  Some friends later, the current top person in the lending pyramid is now in possession of over a thousand dollars.  That person buys weapons with some of the money, sells weapons to make more money and then lends the rest.  A couple of friends later, the current top of the chain uses the money to buy political influence or power and sits on the rest of the money.”

“There is nothing strange about that”, I noted.  “Many of our investment vehicles work exactly like that.  That is how the world works.”

“Very true”, my companion nodded.  “Now let’s assume you have an emergency in your Life and you need your dollar immediately.  You come to me but I don’t have the money you lent me so I ask for it up the chain.  The guy I lent it to realizes that he will have to give up his food and is not happy with that and so he tries to get some of the money back from the guy who bought weapons.  That guy realizes he will have to give up some of his weapons in order to be able to satisfy the request and decides that that is not an option.  So he in turn asks people higher up the chain to give up some of their money so that someone can send a dollar back down the chain to you.”

He paused for a moment before continuing. “The people at the top, not wanting to give up the power they have bought with their money, decline the request and so despite a lot of perceived money in the system, no one is able to return a simple dollar to help you.  However, the person at the top decides he is willing to lend you a dollar with exorbitant interest if you are desperate enough.  While you have accepted this approach in the past, you now decide to exercise a legal process to force me to return your dollar to you and in the process, the pyramid collapses as people at various levels are forced to give up food, weapons or power.  This causes them to turn upon each other to protect what they perceive is their right to own.  Meanwhile, the guy at the bottom, you, just wanted your dollar back but in your inability to get your dollar back unencumbered, you are in the least powerful position of all and your world collapses.”

We walked in silence for a bit before he concluded.  “The person with the smallest ulterior motive is also the one with the least amount of power but the one who will be punished the most for merely asking for what was rightfully his.  Seems awkward or unfair, doesn’t it?”

“I guess”, I replied as I mulled over his words, trying to decide if they made sense or not and whether or not I had somehow contributed to this if true.”

We both paused for a moment before I asked, “But if that’s the case, who would benefit the most from such an arrangement?”

“Now that is an excellent question”, he replied.  “Seeking the answer to such a question would prove to be of great value for humanity.  Unfortunately, few have such courage to pursue it.  It’s like being the first family to settle in a neighbourhood that a city is rehabilitating.  Few have the courage to put their family at risk by being first but everyone wants to reap the reward derived from driving the bad elements out of a neighbourhood in order to reclaim it.”

He was silent for a moment, allowing his words to sink it, and then he asked, “What type of person are you?”

“I’m not sure”, I replied, “I wouldn’t even know where to start.”

When my comment produced no reply, I looked around and my companion was gone.  Momentarily confused, I looked around me, knowing that he couldn’t have disappeared that quickly.

As I continued to look around in bewilderment, I looked up and realized that I was standing in front of the Federal Reserve ….

…. and I wondered.

To be continued.


© 2014 – Harry Tucker – All Rights Reserved

Series Origin:

This series, a departure from my usual musings,  is inspired as a result of conversations with former senior advisors to multiple Presidents of the United States, senior officers in the US Military and other interesting folks as well as my own professional background as a Wall St. / Fortune 25 strategy and large-scale technology architect.

While this musing is just “fiction” and a departure from my musings on technology, strategy, politics and society, as a strategy guy, I do everything for a reason and with a measurable outcome in mind. :-)

This “fictional” musing is a continuation of the #1206 series noted here.


Wednesday, February 26, 2014

Confessions of a Gentle Arsehole

I am an impure thinker. I am hurt, swayed, shaken, elated, disillusioned, shocked, comforted, and I have to transmit my mental experiences lest I die. - Eugene Rosenstock-Huessy

Follow the path of the unsafe, independent thinker. Expose your ideas to the dangers of controversy. Speak your mind and fear less the label of 'crackpot' than the stigma of conformity. And on issues that seem important to you, stand up and be counted at any cost. - Chauncey Depew

If you stand up and be counted, from time to time you may get yourself knocked down. But remember this: A man flattened by an opponent can get up again. A man flattened by conformity stays down for good. - Thomas J. Watson

Of the many emails that I receive regarding my musings, there are three types that are very common.  They are:

  1. How can someone who can make make me laugh or cry also write with such a sharp (cruel) sword about certain subjects?
  2. For someone who writes such interesting (potent) stuff, especially about politicians or business, why do you write about “weak” stuff like motivational or inspirational subjects?
  3. Who the heck are you anyway?

And so, without further adieu, I feel compelled to offer a confession.

Bless me, Father, for I have sinned

As someone who grew up in a small town in Newfoundland, I learned the traditional things that one learns in such small places – the value of relationships, of knowing your neighbor (heck, we knew the whole town), of an honest day’s pay for an honest day’s effort and for appreciating the small things in Life.

Moving on to an award-winning career on Wall St., I learned new “values” and walked a fine line between the values I was raised with and the new ones – values that many might perceive as being in conflict with “normal” ones (whatever normal means) but which you must embrace to succeed in that environment or face being eaten alive.

This hybrid Life, commingling a relaxed rural setting and a frenzied urban one, created a hybrid human being – a New Yorker in a Newfoundlander’s body as I like to call it.

My heart beats to the values I was raised with, prompting me to write stories like:

They inspire thousands of people to share their deepest thoughts, hopes, fears and confessions with me and I am humbled, honored and moved by their sharing and their courage.

My head is driven by the values that I was exposed to on Wall St., prompting me to share musings such as:

My exposure to “certain projects” and “special people” inspires “fictional” writing that I refer to as the #1206 series and includes stories such as:

But when head, heart and experiences collide

Having been raised on one set of values while working in a world where values are merely a suggestion or a convenience in order to get one up on others has created a hybrid that motivates me to write about things such as:

These are the musings that lawyers get all excited about but I know my boundaries and so while people get all excited they eventually give up realizing that to make an issue out of the truth will only make their client’s Life more complex (and more transparent).

The origin of the last set of musings are the most complex to decipher by some people as they seem out of character for someone who prefers to lead gently with the heart instead of aggressively with the mind.

But as with the strategic and tactical offerings I provide to clients, there is a method to my madness.

My Personal Philosophy

I believe that we live in a beautiful world of unlimited potential – a world that is simultaneously a complex, difficult chaos and a thing of simplicity and beauty that is perfectly orchestrated.

My personal vision and mission, as noted on my website, reads:

Harry's personal vision and mission.

But such a world does not happen by accident nor does it evolve into its most beautiful potential when we condone or allow indifference, apathy, wilful ignorance, greed or one of the other “values” that many people embrace.

And sometimes when one comes across people who are either not guiding us towards a better world or are actively guiding us away from one, then one needs to make a stand.

Love and respect don’t always win.

For those who think that perfect love and respect can win over anyone or any situation, I agree …. most times.

But there are some people in the world that cannot or will not respond to such kindness.  In fact, to embrace unlimited love and kindness as the solution to everything sets some people up to be a doormat - one whom other people wipe their feet upon and move on as they seek their next victim.  Some of these people are like bulls rushing towards you with intent to tear you asunder in their anger or greed-driven need to accomplish their own objectives.

Such people cannot be reasoned with with love, respect or kindness.

They know only one way to treat people and so when they run into people like me who put up my hand and say “Sorry, your journey of greed, selfishness, wilful ignorance or indifference ends here” they don’t like what they see.  They don’t like the cranial defibrillator that I present either.  The idea that their irresistible force has finally met an immovable object presents a unique and potentially uncomfortable situation for them.

A mirror is a difficult thing to behold when we don’t like the image being reflected back to us.

And so while I don’t look for trouble nor do I go out of my way to make other people’s issues my own, sometimes karma has a way of placing me in the Path of someone else for a reason.

What matters at that moment is if both sides in the random or karmic encounter are prepared to explore and embrace the reason why their Paths have crossed.

The Bottom Line

To answer the final question as to who I am ties all three questions together nicely.

Professionally, I provide strategy, tactical and large-scale technology guidance to little, itty bitty, teen weeny companies and really, really, big, gigantinormous ones (sorry for the technical terms).  I live in a world defined by facts, data and measurable outcomes.

But in reality, I am a human being who seeks to lift those who need to be lifted, to defend those who struggle and to give a voice to those who believe they have lost theirs (or believe they never had one).  I am a passionate, respectful collaborator who seeks the best in people and opportunities.

I do so because I believe as a realistic optimist (or an optimistic realist) that a beautiful world exists and can be made even better by not ignoring the things (or people) that hold us back.

And while I confess to being a gentle arsehole (my apologies for so many technical terms here), I won’t apologize for it.  Maybe the ones who see me as an arsehole need to spend more time looking within.  Perhaps I’m not so much of an arsehole as I am a mirror, offering a reflection of their beauty or ignorance.

Being a gentle arsehole has its rewards and its difficulties.  In the end, what motivates me the most are our children and the legacy that we are creating for them.  Marian Wright Edelman said it best when she said:

If we don't stand up for children, then we don't stand for much.

What do you stand up for?

Why?

Why not?

In service and servanthood,

Harry - an unapologetic, respectful, gentle (most times) arsehole (I mean mirror)

Wednesday, January 15, 2014

Do We Write History Or Does History Dictate To Us?

The past speaks to us in a thousand voices, warning and comforting, animating and stirring to action. - Felix Adler

History is a vast early warning system. - Norman Cousins

The #1206 “fiction” series continues …….

---------------------------------------

He started in disbelief at the PDF document on his screen as a babble of voices on the Skype call continued in the background.

One insistent voice in particular brought his attention back to the conference call.

“As explained in the document that accompanied this PDF”, explained the meeting moderator, “the PDF represents the efforts of some of the best linguists in the world for over 60 years.  We have ascertained that the content of the original material dates back several thousand years but it has taken up until now to translate it.”

He frowned as he paged through the PDF.  He opened his mouth to speak but someone else on the call beat him to it.  “How can you claim that this document is several thousand years old when it describes events in our recent past?  This has to be some kind of hoax.”, the voice expostulated.

The resulting cacophony of protests from the conference call attendees forced the moderator to mute them all.

“When we have quiet, I will continue”, he said tersely.

Pausing as the participants acquiesced to his demand, he continued.  “Good, that is much better.  It is important that you understand and accept some basic conditions before we continue.”

The moderator paused for a moment, cleared his throat and then proceeded.

“The origins of this document and our best understanding of who wrote it will be explained shortly.  However, there is something else interesting about this document.  Has anyone noticed it?”

A voice, choppy because of poor connection quality, asked in an intermittent voice, “Why does it end in 2001?”

“Ahhhh ….. excellent question”, replied the moderator.  “The original document was written beyond the point that you see here but at one point was divided into two documents, with the latter requiring a much higher security clearance that exceeds even the level of the President of the United States.  Now that we have some semblance of order, I will share my screen so that you may see what part two of the document looks like.  I will warn you in advance that what you are about to see may disturb you.”

Moments later, the screen displayed another PDF.

As soon as he realized his screen capture had been disabled remotely to prevent capturing images of this PDF, he grabbed his phone and started photographing his screen as the pages were turned by the moderator.

The moderator’s voice came over his laptop speakers.  “I have stopped on this page for a reason”, he said.  “Please note the significance of the events described on this page”.

He dropped his phone and stared stupefied at the screen.

“How is this possible?”, he thought.

“It appears”, continued the moderator, “at least according to what we have read, that we are about to live through what you see described before you.  The obvious questions, above and beyond so many, are ‘How would somebody know this in advance?’, ‘How can we verify this is real?’ and ‘Can we prevent it if someone seems to have already documented it as if it has happened already in their history?’”  The moderator’s emphasis of “their history” was unmistakeable.

His eyes flicked over Wall Street references, some references to specific hacker events, pandemonium and the results of a dreadful miscalculation by a few world leaders.  The estimated death toll, being more than 95% of the current population of the United States and Canada, particularly jumped out at him.

There was silence as people around the world on the Skype call stared at their screens in silence.

“According to one former senior advisor to the President of the United States, the events described cannot and will not be prevented”, said the moderator. “How he claims to know this is beyond my knowledge.”

“We must prepare for the transition as noted here”, he concluded.  “The difficult question becomes how.  I’m told that our hope lies not in preventing what you see described but rather, by successfully living through it.  We will be supported by legislation, particularly Executive Directive 51, which provides for the continuity of basic government services during the transition period.  What remains to be determined is who decides what 5% of the people will survive and how the process of government will be returned to those people once the transition has completed.”

He paused for a moment.

“Are there any questions?”, he asked.

To be continued.

-----------------------

© 2014 – Harry Tucker – All Rights Reserved

Background:

I wrote a much longer version of this post and submitted it to members of my network for vetting as I do with all of the #1206 blogs.  It was rejected twice and I was asked to remove some specific references. 

The closing lines from “one former senior advisor” and “the moderator” are direct quotes from a former advisor to multiple Presidents in his response to my original material.  Curiously and by coincidence, he is also a master in the study of history. The death toll reference comes from him based on scenarios that he has reviewed with peers of authority.

Executive Directive 51 is an executive Presidential order that provides the President of the United States with the authority to bypass Congress, the Senate and the process of elections during times of specific emergency and until such time as that emergency has passed.  He also assumes full control of the military during the emergency period.  The definition of what constitutes an emergency is described in loose, fuzzy terms and the rights of the people during the emergency period are classified.  The President has sole discretion as to if and when the Directive is invoked and when it is revoked. 

Once the emergency has passed, the process of returning government back to a working Congress and Senate and the restoration of elections has also not been publicly defined and is in fact, also classified.

This process exists for a well-meaning President who can save a country in trouble, a mentally-disturbed President who is not quite sure what he or she is doing (or is being influenced by someone else) or a President who seeks to seize more control for any reason.

It could even be invoked by a President who, after losing an election, rationalizes that an incoming President might disrupt the country and so the Directive is invoked “in the best interests of the country”.

This is complicated stuff that exists but no one likes to talk about under the guise of “no one would ever abuse the authority”.

That’s the problem with history.  Every time we repeat it, the price goes up.

So has a process for returning power to the people been defined?  It is not known although one would suspect that if the information was simple or positive, it would not be classified.

Take from all of that what you will. 

On a side note, I much preferred the version I really wanted to write but couldn’t get permission to.  As a writer, I am unhappy with this.  As a strategy guy, I’ve said all I am allowed to say.  Ahhhh the structural tension of it all.  I will explore permission to add more data to this as time permits.

Series Origin:

This series, a departure from my usual musings,  is inspired as a result of conversations with former senior advisors to multiple Presidents of the United States, senior officers in the US Military and other interesting folks.

While this musing is just “fiction” and a departure from my musings on technology, strategy, politics and society, as a strategy guy, I do everything for a reason and with a measurable outcome in mind. :-)

This “fictional” musing is a continuation of a series noted here.

Wednesday, November 6, 2013

Wall Street and the Unasked Question

There once was a racehorse that won great fame. What do you think was the horse’s name. – Children’s riddle

As a child, I loved to stump adults with this riddle since it is a statement and not a question - the horse’s name is actually “What Do You Think”.

However, sometimes there are interesting statements being made by individuals via their actions that begs a question that few ask.

In a meeting with some colleagues yesterday, we were discussing yet another colleague who was cashing out his holdings (a little under $400 million), converting it into things like bullion and building the house of his dreams.

But unlike what we believe to be the typical Wall St’er house of one’s dreams, filled with opulent or decadent baubles, his house will be several hundred miles away from civilization and will be completely self-sustaining in the areas of food, water, security, energy and medical needs.

We put together a list of colleagues we have worked with over the years who have done similar things and we discovered that approximately 40% of our network (at least to our knowledge) were in various stages of starting, finishing or had already finished such a project.

There was a common reason why they were building such “havens from society”.

It’s a reason that is not a secret but is not openly discussed either unless one simply asks them the question “Why are you doing this?”.  Most are happy to answer the question … honestly …. brutally.

I’ve never been one to conjecture or spread rumors so I invite you to find a couple of Wall St. folks and ask them yourself (off the record, of course).

Ask them about things such as:

- the impact of ongoing quantitative easing and the difficulties associated with weaning the market off the Fed teat (especially after QE has been going on for so long) versus the impossibility of leaving the market on the teat forever. Have you ever watched a person be broken of their heroin habit – it’s not pretty and yet it must be done before the person self destructs.

- how the annual S&P 500 consensus earnings-per-share are trending and what this means.

- the impact of stocks being priced more than 50% higher than their 10-year average.

- the unusually high ratio of bulls to bears and what happened the last time the ratio was this high.

- the fact that the volatility index (VIX) is very low (despite some recent bounces), indicating that investors have squeezed much of the risk out of the market and are feeling very complacent (you know what happens when people get complacent about anything).

- historical impacts of previous meteorical rises in the stock market and how corrections are inevitable.

- how market trends and other associated economic indicators that are usually in congruence are not in the last couple of years, confounding many economics “experts”, forcing them to rationalize such anomalies with new, unproven, convenient theories.

- how markets go up or down at will despite the predictions of the experts (indicating that the masters of the domain are not necessarily masters of anything but are merely educated guessers – like the weatherman).

- how individuals and organizations create their greatest profits out of the ashes of collapse, making collapse critically important to their success.  This collapses comes at the expense of the misinformed, the uninformed and the complacent.

And then think of what happens when you take a racehorse that prefers to be held back until the last furlong but instead, you decide to whip its hindquarters from pole to pole in the longest, highest-stakes race of its Life.

Would you put your money on such a horse race after race?

They’re not either.

Although somehow it wouldn’t feel as bad if it was someone else’s money …… or would it?

I guess that depends on the nature of your values, doesn’t it?

In service and servanthood,

Harry

PS As a long-time Wall St. strategy person, I am not licenced to provide investment advice nor do I give any, therefore please don’t ask for any. :-)

Tuesday, October 11, 2011

Occupy Wall St.–Good Intention, Wrong Address

As a Wall St. guy for many years, I look at the current Occupy Wall St. movement with a mix of sadness and concern.

I am saddened by the fact that in the most enlightened country in the world where there is more than enough to go around, there is the need for such demonstrations.

As I have often mused, we don’t have a shortage of things in the western world.  We have a shortage of appropriate distribution of the things we have.

There’s a big difference, one not easily changed by yelling at the people who have those things.

But there is something I am concerned about beyond the need for demonstrations.  I am concerned about whom we are directing the demonstrations towards.

Most People Are Not Breaking Any Laws

Despite the existence of the Bernie Madoff’s in the world, most of the people working on Wall St. are not breaking any legal laws.

Yes, it is true that some of them may be guilty of breaches of appropriate moral or ethical behavior (depending on who defines the bar for such behavior).

However, most of them are doing what almost any human being would do.

Many human beings, including many who are protesting on Wall St., would leap at the chance to make obscene amounts of money if given the chance AND the opportunity were within the confines of legality.

So it’s not a question of people and corporations making too much money.

It’s more a case of “they are making the money and I am not”.

When we really examine the root causes of the perceived evil on Wall St., there is something else that is important to consider.

We Could Have Fixed This A Long Time Ago

Many of the things that Wall St. is doing now were being done by the same individuals before the massive bailouts that saved them.  We knew about it then and bailed them out anyway without demanding significant change in how the organizations executed.  It seemed that at best, the changes we asked for in corporate execution were more around managing public perception than controlling human greed.

The bailouts therefore didn’t correct a behavior but in fact rewarded one.  It sent a message that “what you are doing and how you are doing it is fine.  You just got a little unlucky and so we’ll help you.  Carry one with business as usual”.  So when I see a President who helped architect the bailouts now siding with people who are against the bailouts and big company in general, the word hypocrite sadly comes to mind, with all respect due the Office of the President.

Business, like nature, is self-correcting.  In the grand scheme of things, when a company executes poorly or immorally, it goes out of business and others learn from the mistakes.

However, when we bail out companies, we are condoning and reinforcing a behavior.  The notion of “we needed to do this to avoid a larger catastrophe” doesn’t fly with me.  The average American is struggling anyway and the threat of a larger catastrophe hangs over us despite the money invested in the bailouts.  The bailouts didn’t prevent the inevitable – it postponed them so that they could eventually manifest on an even larger scale later.

Meanwhile the corporate behavior of the bailed out companies continues larger and more aggressively than ever.

So Who Should We Be Protesting Against?

Think of this.

Some of the protestors are protesting corporate greed, some are protesting our involvement in wars, some are fighting for better living allowances, etc.  The ones fighting the very existence of corporations don’t get my sympathy when I see them using their iPhones and iPads to get the word out.  How would they get the word out if Apple, one of the most influential corporations in the world, ceased to exist or had never existed?

However, when it comes to corporate greed, the corporate greed was rewarded, condoned and reinforced by government bailouts.

Wars, whether rightly or wrongly, are a government concern.

Living wages, whether realistic or not, are a government issue.

And with that, I would conjecture that the right place to be having a demonstration is not on Wall St. but in front of the Capitol Building, the White House and equivalent buildings across America.

It’s like having a protest on the front lawn of a lottery winner because you think lotteries are immoral.  You’re barking up the wrong tree – you need to go to the people who authorize and control the lotteries in the first place.  After all, anyone offered millions of dollars would happily accept it.

Demonstrators – A Gift From Heaven

But moving the demonstrations won’t happen as long as the President and other leaders now side with the demonstrators, fueling and encouraging their misdirected anger.

After all, if I wanted to distract people from my contribution to a problem (with the bailouts and such) or my inability to solve the current problems in the country, demonstrations against a scapegoat such as Corporate America are a gift from heaven.

In fact, if I was the President right now, I’d be issuing a sigh of relief.

I believe the President does care about solving the country’s challenges.

But if the attention of the protestors can be redirected elsewhere, at least for the time being, that’s one less thing the President needs to worry about …. especially with an election on the horizon.

If you want real change in America, you need to get to the root causes of how we got here.

And that includes holding the right people accountable, even if that means moving your protest from Wall St. to Pennsylvania Avenue.

When the true parties responsible are not held accountable, our dream of solving the difficult problems we face today are just that … dreams.

Dreams that can turn into real nightmares if we don’t solve them quickly and appropriately.

In service and servanthood,

Harry

PS I was reading the Declaration of the Occupation of New York and saw some things in there that reinforce my concern.

Looking at a few items in the declaration (quotes in italics) with my comment following each.

“They have taken bailouts from taxpayers with impunity, and continue to give executives exorbitant bonuses.”.

Why would you be angry with the company that accepted the bailouts and not be angry with the group that issued them?

“They have held students hostage with tens of thousands of dollars of debt on education, which is itself a human right.”

This is more of a matter for governments and educational institutions to solve, not big corporations.

They have used the military and police force to prevent freedom of the press.

I admit that the press can be biased one way or the other but I am not aware that the military is preventing freedom of the press.

“They have accepted private contracts to murder prisoners even when presented with serious doubts about their guilt.”

Uh … what corporations are murdering prisoners?  I missed that headline.

Now to be fair, there are some valid points in there as well.  But one needs to keep everything factual and focused, otherwise people will focus on the stuff that is not, thus discrediting the movement in its entirety and negating the opportunity to fix the stuff that needs to be fixed.

Monday, May 10, 2010

Where’s the Beef?

In 1984, the Wendy’s restaurant chain ran a smart commercial about an elderly lady who walked into a competitor’s hamburger restaurant, ordered their “Big Bun hamburger” and was greatly disappointed with what she was presented with.  As she looked over the sandwich that was all bun and no burger, she yelled out the famous phrase “Where’s the beef?”.

As a strategy guy looking over many of the challenges facing us today, the same question comes to mind.  Think of these challenges that are swirling around us these days (and this is just a subset):

Gulf of Mexico

The Gulf of Mexico is facing a dire future as oil continues to spill from the damaged oil well on the ocean floor.  British Petroleum (BP) assured the state and federal officials during the license application process that the potential for an accident was so remote, it almost wasn’t worth thinking about.  However, if an accident did occur, there was more than enough technology available to prevent it from being a problem.  “Trust us”, said BP.

On a personal note, Chevron is about to embark on some oil drilling off the coast of my home province of Newfoundland and Labrador in Canada.  This drilling will take place in some of the deepest water ever explored for oil production; a place where a catastrophe on the scale of the Gulf of Mexico could obliterate the local ecology and marine-based economy for decades.  Will the Gulf of Mexico be recreated off the coast of Newfoundland?  “Trust us”, say the oil companies and regulatory bodies, “This is different”.

Wall Street

It’s been known by a lot of people for a long time, both on Wall Street and off it, that practices behind mortgage-backed securities and subprime mortgages were totally unsustainable but people did what they did anyway.  Regulators, legislators and some Wall Street management either looked the other way or were assured that nothing catastrophic could happen.  “Trust us”, said the people who created the financial products in question as they relabeled them to be more palatable.

There’s another correction on Wall Street coming in the next 6-9 months.  Leaders will act surprised when it happens.  Then they will say “Trust us” as they set about “correcting” it.

US Public Healthcare

The massive healthcare bill, over 2400 pages worth, with unknown sources of revenue to cover the operating costs and with difficult-to-define impacts on other legislation was passed with an extreme sense of urgency.  Nobody knows if it will work, how it will be paid for or what impact it will have on the long-term debt situation in the US.  “Trust us”, say the legislators who passed the bill.

World Ecology

It doesn’t take a rocket scientist to see how we are rapidly using up everything the earth has to offer and in return, we are giving it some of the most toxic chemicals we can conceive.  Bureaucrats from around the world have been meeting for years to discuss ways of correcting this and continue to produce little of meaningful impact. “Trust us”, say international bureaucrats and people like Al Gore who have discovered that there is more money to be made in promoting the problem than finding a solution.

Iraq / Afghanistan

We are allegedly fighting in Iraq and Afghanistan to bring peace from terrorism and to bring stability to that part of the world.  Whenever anyone challenges why we are really there, we are assured that we are in fact there for all the right reasons.  “Trust us”, say our political and military leaders as heroes from our side and civilians from their side continue to die.

Lately as these and other assurances fall flat, I think of the old Wendy’s commercial and have to ask:

“Where’s the beef?”

Whenever anyone challenges the message of “Trust us” in these or other areas, we are met with a number of reasons (or excuses) why trust is all we have to go on.

Here are some of the ones we are given:

  • National security – sharing what we know will compromise your safety.
  • Confidentiality – sharing what we know will jeopardize corporate confidentiality.
  • Complexity – the problems and solutions are simply too complicated to explain to everyone.
  • Timing – we don’t have time to stop and explain this; we’re off to tackle the next “thing” of an urgent nature.  Other timing related excuses include things such as “if we delay execution too long, a corporation will suffer or a military opponent will gain the upper hand and you don’t want that on your hands, do you?”.
  • Over-estimation of risk – we know there is less risk than you think there is, so there is no need to stop and engage in a pointless dialog about a problem that is not as bad as people think it is.
  • Intelligence – we are experts at this, you are not, so whose opinion matters more?

What some of these leaders need to remember is that the electorate and people at large are a lot smarter than they realize.

Fortunately for these leaders, many people are crushed with the weight of keeping their families above water on a daily basis and so they can’t take the time to stop and say to today’s leaders:

“Where’s the beef?”

Some people who do ask the question are easily intimidated into silence using a variety of techniques.

I think if we could finally get many of these leaders to be totally accountable and transparent around their challenges and intentions, then we would truly see the real risks (or lack of) with many of the things that face us.

When we all have knowledge of the challenges before us, we tap into a much larger group of people who can contribute to solutions.

And then, maybe then, we will truly move closer to our phenomenal potential on this planet.

Have you asked a leader lately “Where’s the beef?”

If you have and you didn’t like the answer, keep asking.

If you haven’t asked the question, why haven’t you?

Regardless of how proactive each of us is in contributing to the world, we all reap the harvest, good and bad, together.

Let’s make it a bountiful, sustainable harvest.

We can choose to correct our behaviors or we can choose to do nothing and eventually, our behaviors will be corrected for us in a process that I refer to as the Great Correction.

I’d rather own the process than be owned by it.

How about you?

In service and servanthood.

Harry

For my Musings-in-a-Minute version of “Where’s the Beef?”, please click here.

Monday, March 10, 2008

Financial Crisis

* Not my typical type of blog post – but a fictional musing that came to mind *

In a quiet, softly illuminated boardroom in Washington DC, twelve men and women were silently reading a report before them.

The gentleman sitting at the head of the table silently watched his counterparts, waiting patiently for them to finish. He is dressed impeccably, right down to the eye-catching gold cufflinks in the cuffs of his heavily starched white shirt.

As each one finishes reading the report and looks at him, he nods silently, as if to answer every question he knows each one of them is pondering.

Finally, as the last of the group finishes reading the report, he clears his throat and asks softly “Are there any questions?”.

A woman at the far end of the table acknowledged his question. “The Fed wants to know how credible the IMF’s source of information is.”

Mr. Impeccable nodded imperceptibly before speaking. “The IMF’s source is unquestionable.”.

“And you believe that our grip on the economies of the world is in jeopardy if we don’t act?”, she responded.

Mr. Impeccable paused for a moment before answering. “You have the report in front of you with the numbers that back our assertions. If we do not act quickly, the gap between our elite membership and the rest of the world will decrease significantly in the upcoming years. Our source assures us of this.”

A balding, sweating gentlemen to the left of Mr. Impeccable leaned forward and with a gravelly voice interrupted Mr. Impeccable, “And the way we can continue to grow our personal wealth is to close a couple of financial institutions in the US. That’s all there is to it?”

“It’s pretty simple”, agreed Mr. Impeccable, “Our source assures us that this simple act will be enough of an action to create additional opportunities for us to increase our lead over the rest of the world.”

The sweating gentlemen, pointed to Mr. Impeccable and demanded, “This sounds too simple. I also want to know who this source is before I agree.”

Mr. Impeccable stood up and looked each member around the table in the eye. “We have never questioned our source in the past and he has always served us well. His advice has been extremely beneficial to us since 1947. Why would we question him now?”

There was silence in the room as the meetings attendees stared at Mr. Impeccable and then the IMF report before them.

Mr. Impeccable continued. “All we need to do is fold a couple of organizations and that will be sufficient. We have been assured that no large scale ripple effect will occur as a result of this and will provide a large return for us personally. It has been suggested that Lehman Brothers and Merrill Lynch are the two organizations we will fold.”

Suddenly there was an eruption of protest from the room, which Mr. Impeccable silenced quickly by raising his hand and commanding silence.

“What is more important?”, he asked, “Our personal growth or protecting a couple of miscellaneous organizations on Wall Street?”

Again there was silence.

“Are there any dissenters?”, he asked at last.

His question was also met with silence.

“Good”, he said with a nod of satisfaction. “Let us proceed. Let the minutes show that we have come to a unanimous agreement on the matter.”

The sweating gentlemen pulled out his Blackberry and quickly scanned it to see what meetings he had coming up for the remainder of the day.

He grunted as he realized the second week of September, 2008 was already coming to an end.

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In a meeting room buried within the bowels of the United Nations, a group of well dressed men and women quietly listened to the speaker at the end of the room. His voice was soft and they strained to pick up every word.

“As you know”, he continued, “The world is in much need of help. Global warming continues unabated. Pollution has destroyed much of the earth’s water resources. War rages across the planet. The United Nations has demonstrated its inability to get on top of these challenges. My group is offering its support to solve all of these issues.”

“Why would you want to help us?”, asked one of the meeting participants, “and why don’t you just step in and help us without these clandestine get-togethers?”.

The presenter nodded as if to acknowledge an excellent question. “We believe that everyone is worth saving. Think of it as nothing more than universal benevolence. As for just stepping in and saving you, as you all know, if we show up on each country’s doorstep tomorrow, we will be met with considerable military and social resistance that will benefit no one.”

“So what are you suggesting?”, queried another one of the participants.

The presenter paused for a moment and pursed his lips. “We would prefer to be introduced as global saviors rather than for us to inject ourselves into global solutions”, he indicated. “Global saviors have a better chance of being welcomed with open arms, avoiding unnecessary conflict.”

“Global saviors?”, responded one of the participants. “How does one do such a thing? And what are you global saviors of? What could possibly happen in the world where the people of earth would feel that we needed to be saved on a global scale?”

“That is a good point’, answered the presenter. “However, until we can figure out what type of event could create global chaos, why don’t we work out the rest of the plan so that we are ready to execute? Are we in agreement on this point?”

With some hesitation, the entire group nodded.

“Good”, said the presenter with a smile, “let us begin”.

His large, dark eyes glittered in the boardroom light as he smiled at everyone in the room. People avoided his gaze as he looked around the room.

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In a sparsely furnished, bright room with no visible source of lighting, two figures sit in silence.

One of them breaks the silence. “How goes the plan to secure the water resources of the third planet?”

“Plans are progressing well”, came the response.

“How have you overcome the planet’s defense systems? This culture is crude and cannot hurt us but has weapons that will contaminate that which we seek. “

“Don’t worry”, the other replied, “We have our best ambassador working on the matter”.

Silence returned to the room.

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© 2008 – Harry Tucker – All Rights Reserved