Tuesday, February 12, 2013

ONE CASUALTY OF THE RECENT FINANCIAL CRISIS - TOO BIG TO CHANGE (EDITED & UPDATED 6/17, 6/23 & 10/11/2013 as well as 4/14, 6/8, 7/22, 7/29 & 7/30/2014)!

Introduction:
The recent financial crisis, has ushered in many changes including, new regulations as previously described on the pages of this Blog as well as new ground rules such as the concept that any company can be overhauled. No company, in this environment regardless of its size or the “awesomeness” of its reputation should feel safe from being targeted for improvement, including those: 1) operated and/or managed like dictatorships with marginal rates of return for investors, 2) those able to but refuse to pay dividends or those lacking in adequate corporate governance with respect to plans for future direction planning to ensure investors interests are addressed responsibly and not only “fictionally”, 3) those that address the wishes of a single individual or share class only, unjustifiably and 4) those that blatantly take over the ideas of others, use them and then refuse to adequately address basic business decorum extended when the property of another is utilized but who in turn quickly see redress from the courts in matters as trivial as when their "business" interests are given "top" billing when Internet search results are displayed. This discussion focuses on the “new order” of activism for corporate improvement in the wake of the recent financial crisis.

Here are the Background Details:
In the article entitle “Activists Go After Big Game” in the July 6, 2012 edition of that Daily/Weekend Business Street Publication (B1/2), the Writers on this subject showed how in this new era no size is considered “off limits” when that giant of the consumer products world, P & G (who to their credit stayed out of the products targeted to the very, very young and in the process distinguished itself from others choosing to jump into this highly questionable market area as documented in the supporting article referenced in the post HOW YOUNG IS TOO YOUNG?. However, this giant in their market found itself targeted by an activist demanding better return on shareholder value (who have counted among their ranks that most notable of investors BHI). Could this move by PSC been in anyway related to the decision to stay out of that highly questionable product market and as a result, was now being pressured by PSC through a third party to change that course of action in order to lend greater “mainstream” acceptance to these products that its presence in the market would bring? Furthermore, could this be part of the promised strategy mentioned in the previous article (accessed via the above HOW YOUNG... link) regarding marketers, channeling their resources to take the "rebellion" out of make-up? It is really difficult to tell at this point, however, if a reversal of action results either directly or indirectly from this or other efforts, it would indeed signal victory for those with perverted “lifestyle” choices and who feel the need to have greater acceptance of such to justify their exploitative behavior, whether they wear three-piece-suits and sit in boardrooms or leather jackets and roam the streets, (as well as all the others in between) with correspondingly more ominous implications for the very, very young in our society! Indeed, the combination of lax or disinterested parents/guardians; callous parents/guardians; more generally accepted conditions favoring thrusting the very, very young into more adult type activities as well as untold numbers of perverted types with questionable lifestyle choices would spell doom for the future of innocence in the society as it was once known and once headed down this path, it is very, very difficult to do an about face. This certainly does not bode well for future generations in our society and to what end, if such a state of affairs is allowed to go unchallenged? The next question to be considered is who has the moral authority to change this impending doom, the "established Moral authorities", who would rather shirk when confronted with the gravity of what atrocities have occurred and retire to safety or others that actually participate in the covering-up and identity switching activities for acceptance, (it would appear not)? There appears to be no real solutions to what lies ahead for a society that not only has lost it "moral footing" because God does NOT become involved in the lives of those who are not His chosen, unless their actions have the potential to impede His will for them (the chosen. Furthermore, any pathway made available will be for those of His choosing, who will recognize His call and respond as appropriate. However, time will tell in this matter, because who mock when the cause of GOD is referenced will see eventually, His way being implemented in spite of the collective power if those of their cause in the form of the "shadowy consuming force", etc.  
In the era when a 1% stake in P&G is considered large enough to warrant notice from this giant as it once would not have been considered worthwhile is due to the shift in corporate governance rules and as a result, the balance of power for those truly non dictatorially run entities. Aiding this new found favor for such activism is the fact that they are no longer associated with the stigma of past corporate raiders who would destroy companies in the name of quick profit taking, leaving those targeted mere shells of their former structures. As a result, institutional investors are more supportive of such activists and consequently so are Boards of Directors, however, such actions as all others come with pros and cons. What are these pros and cons? First of all, this type of activism should in theory work best for badly or poorly managed entities in, which such actions could be an instrument for change. On the other hand, when such actions are themselves being used for corporate “free loading” then this process becomes counter productive, as those who use these methods to agitate for their own “slate of directors” [see the post “WHO REALLY WAS GRANTED FREEDOM TO SPEAK?” as well as the below link for further discussion on the details of corporate “free loaders”]. As a result, such entities are now faced with being forced to provide corporate cover for those who seek to use these structures for questionable practices by adding those so called "superstar CEO's" with no meaningful skills to their corporate bodies in the name of quick profits and its associated perils while sacrificing “real” long-term innovation. If activism is “truly” being used as an instrument for change, in those “publicly” traded companies, which have either inflated share values or prices and those lacking in effective corporate governance practices that are respective of shareholder funds that they avail themselves to, then this is a valid mechanism for affecting needed reform.
In the case of RILLC as the article pointed out, which last November forced technology giant HP to add a Director to their Board of Directors, time will tell if this entity with its revolving leadership problems was really being pressured to add “free loader types” to its corporate ranks or if this activism was used to push this venerable entity in a new form of innovation or just quick profits while relying on the type of business style that says "superstar CEO available" or otherwise, only time will tell. Cloaking corporate structures with such types and the myriad of associated “identity-related” issues etc., they bring can no longer being covered by such structures with their new found, “free speech rights”. These rights should not be abused in the cause of providing a direct pathway for illegal activities and those who avail themselves to such practices in return for easy lifestyles either at the expense of some “nameless” victim(s) along the way whose records then have to ravished to provide cover for these types with their lack of meaningful skills and/or those who legally “await their turn” via the normal immigration pathway, which could take years and this is very, very unfair to those seeking citizenship and following the rules.

The Long-Term Implications/Possibilities in this Environment:
The financial crisis has brought with it the realization that no company is considered “safe" or “off limits” from investor activists, generally, because such activists are no longer associated with corporate raiders and the destruction they bring to organizations in the cause of quick profits. However, caution also has to be exercised when such activists use this method as a pathway force entities to “pad” their corporate/directors ranks with “free loader's cause” types with the zero meaningful skill set they bring and the associated perils they bring in the name of quick profits, which can be as equally destructive to an organization as the old corporate raiders previously carried out. In one case the destruction is readily visible while in the other the damage is more pervasive to the organization, which now has to be a vehicle all forms of other illegal practices that they condone as a result, rendering it useless as a legitimate entity but only a shell to be used for all forms of associated practices that now have to be tolerated in the name of quick profits, because once started on this path it’s impossible for any organization to retreat from it and who in turn behave like “leaches”, because its difficult to rid oneself of such easily living types with no real skill set of their own who are comfortable living “shadowy free loader” lives in order to survive at the expense of others (see the post "WHEN TOO MUCH OF A "GOOD" THING IS BAD!" for a discussion of the lengths and duration involved in attempting to get one such "imperilled" entity to act responsibly and the 3438-day (and counting) duration (as of 2/15/2013) involved even though considering the fact that a scam by a "ring" of con artists may have led to the existing conditions in, which this entity finds itself see the post THE ONE THAT WAS OVERLOOKED, OR WAS IT (EDITED AND UPDATED).  
On the other hand those working for meaningful corporate reform now have the type of environment in, which those with poor governance practices and other management issues can and should be supported in their efforts along these lines. Quick fixes by such entities to please “one” individual or “class” at the expense of the broad public investors whose funds contribute to and make up such companies can no longer be tolerated and neither can the practice by the worst offenders to force others to accept operating funds (investment) as a means for introducing “free loading” via an alternate pathway in return for receiving operating capital. This is no different from the “racketeering” methods used in the days of the so-called “roaring twenties” when “mob” types using such was the standard openly accepted practice for remaining in business. These methods with their build-in kickback mechanisms can have a crippling effect on those businesses that so chose to “join” the club in exchange for such funds because their effects are progressive, meaning that those who use such practices in turn impact many others in order to maintain the kickback schemes these “easily obtained” funds necessitate in order to sustain repayment.
The “public” title brings with it certain performance measures that can’t be kicked down the road and instead force others to be crippled with “mob” style kickback conditions to the benefit of the few who continue to act dictatorially and hang onto such vestiges of power at all costs. Those who operate in dictatorial business environments such as described on this Blog in posts such as: “HOW CAN A BUSINESS BE OPERATED AS A DICTATORSHIP IN A FREE SOCIETY?” as well as DICTATORIAL STYLE OR NOT (EDITED)? In addition to “WHATEVER HAPPENED TO THOSE “SWEEPING CHANGES” SUPPOSED TO OCCUR IN THE ELECTRIC UTILITY INDUSTRY (EDITED)?” only give “lip service” to this “public” label because their operating methods are not implemented in anything even remotely resembling the interest of the public, which they are claiming to serve. Instead, the reverse in true, these entities that go out of their way to resist change of any type have the public serving them instead is the only way that the practices actions carried out by such dinosaurs (who operate as emperors of their our own kingdoms), taking from whom they choose and giving to they think warrants it irrespective of whose rights are destroyed along their paths. A true publicly managed company, and respectful of the public its serves should: 1) not be participating inblackoutsas a mechanism to cover-up identity switching schemes (as documented in the postONE TOO MANY "COINCIDENCES" - THE FINALE UPDATED (AND EDITED)”, 2) be wiling to alter its unfair share value when its operating conditions no longer warrant and/or justifies it, 3) not be participating in kicking critical decision-makingdown the roadby game-playing as a replacement for responsible due diligence regarding its responsibilities for long-term succession planning and/or sound financial management tools to eliminate burdensome debt, especially if it involves placing a publicly traded company's future on questionable financial schemes as a means of long-term survival and then recklessly embarking on all types of escapades to ensure that these unsound actions are maintained at the expense of unsuspecting individuals 4) be willing to consider dividend pay outs rather than hoard cash to further the questionable lifestyle choices ofoneover the larger public group (of investors) it serves, 5) not be participating in any unethical activity, period and 6) not be willfully using the ideas of another business interest and then refusing to adequately address compensating (now estimated to be a total of approximately $13,000,000.00) as documented in the post THE TIME FOR THE "OVERLOOKED" PAYMENT IS FINALLY HERE, MR. BUFFETT - EDITED AND AMENDED.

Conclusion:
In this era, questionable additions to Boards of Directors” should be challenged and thoroughly scrutinized for the validity of and relative skills set such individuals really bring to corporate structures otherwise the cost and price paid by society for such practices is too high [my experiences are a testament to such “dynastic” type decisions by operating monopolies (or dictatorial types)] who would stop at nothing to ensure that their “way of life” is unimpeded. In this environment such dinosaurs from the past can’t be allowed to be called true publicly (serving) companies while behaving like past “pharaohs” taking from who they choose to redistribute to whom they consider to be deserving, this is unfairness at its worst, that such entities have no authority to implement. Only ONE does and these types continue irrespective of their “public” trust that they violate on a daily basis and think that such actions will be allowed to continue indefinitely, but they really don’t know the future as our best guesses often miss the mark (as documented in the post THEN AND NOW!) otherwise they would heed the warnings given instead of repeatedly seeking to find new ways to carry on in their existing methods while hiding behind shameless types who repeat whatever “lines” are needed for the day to cover up their own bad and abusive decisions. This state will not go on in perpetuity and those who live by questionable business and lifestyle practices will NOT be permitted to impede the will of GOD for His chosen!

5 comments:

J_F_Brazant said...

No one really knows the future and those with whom we interact form bits and pieces of our history in one form or another as we can never tell how or what will take place from one day to the next. I was privileged to be sent off from my Homeland by one dear friend and welcomed into the Country that would become my replacement homeland by another and that's irreversible, just as the fact that they both have now met their demise at the hands of those who have taken up the mantle of determining outcomes, reordering historical events, etc all for a cause that's senseless, shameless and involving shameless "free loader" as well as "free loader-related" types, in such a broad, intricately woven quilt(s), that it consumes anything and everything in a vicious system of patronage that these types have bought into with little regard for how their repayment methods impact innocent lives along the way by those cowardly types who so nobly impair the lives of those targeted for their cause with little regard for what long-term impact their self-centered actions have on the lives of the most vulnerable of our society, while at the same time lying before the cameras and attempting to tell others what's best for them. How dare such shameless types attempt to dictate the lives of others when theirs is mangled with despicable acts of such an unimaginable nature that ONE Himself would find so disturbing that a caring Mother's concern would become His in the way in, which He intervenes, by using others to offer to assist at a time and place of His choosing in the way He so impresses as is the most fitting manner such a cause should be addressed in that resulted in the most well laid plans to be put aside for a cause that is greater and more worthwhile than what was under consideration by one party from then to now and is now instead offering to assist in what is more meaningful and helpful and useful for those innocent "victims" whose lives were impacted forever on the road of "whatever works" for those with no moral fibre, standards of conduct, etc., this is His method for how such an unconscionable act should be "tactfully" addressed in a manner to bring fairness and freedom for all!

J_F_Brazant said...

The "Legal" definition of a "Sole Proprietorship" is by definition just that and doesn't include by decree "free loaders" and their types because those who operate as and consider themselves to be "dictators" in the true sense of the word (and in the case of some especially with their new found "free speech" rights as the comment # 5 from 5/11/2013 on THIS Page underscores, restated below for emphasis), has determine it to be so, by a flexing of their powers. The Constitution of this Country does not allow for either individuals (political or otherwise) to function in any dictatorial manner with regards the affairs of other individuals, in political, civic and such matters regardless of: a) whose support they have politically or otherwise and b) their operating styles permit them to act as dynastic monopolies, c) a single Mogul's financial and networking support affords them the type of "backing" to permit them to follow a "whatever works" mantra or otherwise, and d) especially when their are being used as part of the Trojan Horse stealth alternate form of taxation without representation scheme implemented with the knowledge of a "few" at the expense of the many in an unsuspecting Nation, all for the cause of man's oldest profession. The previously referenced comment is restated below for emphasis, as follows: - "When the Constitution is applied in ways the "Framers" did not intend it to be, unintended consequences of unparalleled proportions result, as occurred as a result of the "free speech rights" decision as documented in the post WHO REALLY WAS GRANTED THE FREEDOM TO SPEAK? - UPDATED for the following reasons: 1) entities are operated by individuals collectively, 2) no individual with the legal right to speak had their "rights to speak" denied, 3) collective groups (of individuals) joining together to function/operate as a single entity deserve no "special" rights according to the Constitution (as it was never intended to be used in this manner), 4) when "dual" voices are attributed to selective members of society at the exclusion of others, since a) not all members of society will ever be in positions to be operators of corporate structures and b) opportunity for misapplication and misuse occurs, because it is being assumed that all involved in the running of corporate structures are "legally" entitled to do so and 5) providing legal "rights" to entities collectively with persons included in their ranks, not "legally" permitted, simply allows them to act DICTATORIALLY further compounding the DYNASTIC MONOPOLY status that some of these entities (in the form of the electric utility industry) already possess.
If additional rights are "inferred" in monopolies, to entrench their operating style as dynastic type entities, legal status is ingrained in such entities to act dictatorially and determine who deserves to be possessing what in illegal redistribution schemes to provide those lacking and who knows where such assumption of powers will lead or have led (for example such as the ability to "give" and "end" life as appropriate by allocating identities, accomplishments, qualifications and histories) and have determined in their "all knowing" power to give by decree regardless of whose rights are trampled on, especially now that "coincidentally" there is no longer any talk of electric utility deregulation that by their "good fortune", the September 11, 2001 attacks effectively sent all previous deregulation talk into a quiet grave for burial (not to mention that they occurred also by "odd coincidence", on the 21st anniversary of my acceptance letter at Pratt to complete my engineering studies, to the date." Note: all links are available on the COMMENTS Page.

J_F_Brazant said...

What is impossible for man is possible for God, because all is His and function according to His discretion. The fact that evil takes place in the lives of those who we don't expect it to, doesn't mean that He is not in control; far from, because His will ultimately will be brought about. Our shortcomings such as not knowing the future, is what limits us from UNDERSTANDING (because this attribute itself is based on the continuous pursuit of God's perfect will for our lives as the post WISDOM, UNDERSTANDING , AND KNOWLEDGE - INSTRUMENTS FOR LIFE so clearly points out). How this spiraling out-of-control, "misguided development" enacted with no thought of how and what such a seemingly "harmless", wealth-generating concept could engulf and consume all in its path to the detriment of society's: commerce centers, institutions of learning, political structure and ultimately, collectively continents, because none can withstand it, (as it seemingly has taken on a "life" of its own); was given no consideration at the outset. However, this is where, ONE steps in to ensure that the "Shadowy Consuming Force" doesn't clash with His will for His chosen and overall intent for His creation (the world we call home) that has been so badly disfigured.
Even the best laid plans often go astray, however when a "shadowy virtual society" is created for the purpose of wealth-generation, with no controls, guidelines or regulations (because it's not even suppose to be in existence), there is no telling what will be the eventual outcome; unintended consequences of the type so unimaginable that no individual, entity, country etc., will be able to control the resulting "uncontrollable monster", and one example was recently seen in the form of "the existence of a "shadow" banking system that helped trigger a more than ten-fold increase in financial sector debt, which surged from $3 billion in 1978 to $36 trillion in 2007, which crumbled" that significantly contributed to the worst financial crisis seen in the opinion of some ever (as the post THE FINANCIAL CRISIS INQUIRY COMMISSIONs (FCISs) REPORT IN ADDITION TO TIME ALSO VINDICATES A CRUSADER! UPDATED emphasizes. This is one of the outcomes when "free loaders" and "free loader-related" types take the financial system for a bath, because this ever expanding (now uncontrollable) number don't use their own identities in financial transactions, as they have no history and as a result take no responsibility for their actions and the financial system crumbled under the weight of this mushrooming apocalypse. Only God, who foresaw what would take place and already had in place the means to His end, that all will see, can intervene using His servants/methods,, and ultimately His will, will be done to charter the course intended for His and at the same time serve as an encouragement for those in need of uplifting to bring about what has already been outlined in prophesy. Note: all links are available on the COMMENTS Page.

J_F_Brazant said...

This comment will be posted in two (2) parts due to its length:

Part (1):
I do agree with the sentiment that the actions of others should not be allowed to stand in the way of worthy causes, no matter how irresponsibly others act on occasion and why they justify doing so. It was for this reason that I revisited my earlier decision and put in place the potential framework/environment to provide assistance to a worthy cause's extensions (as these subsidiaries is where I can envision the greatest assistance being provided and for whom the measures previously described under FREEDOM FOR ALL - FORWARD could best be justifiably adopted as indicated earlier), who through no fault of their own were impacted. One can never tell how such assistance, may be the "spark" to the making of one of similar character as a Harriet Russell Strong or the Biblical Queen Esther the adopted daughter of the upright Mordecai for contributions beyond anything anyone can presently think of. Therefore, in this regard, I am still willing to honor my word(offer) to assist, which in principle in this regard was never withdrawn even though some have chosen a path that is very unhelpful (at least in my opinion and from my perspective).
However, my decision to still carry out the offer made in the lives of a worthy cause's extensions only is how I justifiably can assist in this manner while depending of God to direct the events in my life, which is why I have to admit, I am still honoring the offer in this manner regardless of what others may choose to do. The offer in this regard stands and the record will show how long the actions of another impeded this eventuality ultimately, as it will not be because of any unwillingness on my part to delay implementing such. However, I can only conclude that God in His unique and divine plan knew that the offer would be maintained in the context described as this is the extent of my limitations in this regard under the circumstances realistically, should they decide to take the offer extended, as this is why it was made and continue in spite of any action on the part of any other individual especially one "working hard" to use the supposed concern for the potential for proprietary issues being a central concern (even though has been proven to be a bogus concern as an avenue to provide "free loaders" with fleeting "legitimacy" since this Proprietorship includes one and no other, as "free loaders" are not included, despite the actions of their cause to use "whatever works" to continually bend and poke their way into my personal affairs.

Continued Below:

J_F_Brazant said...

Continued from above:

Part (2):
Their cause is not my concern as I am not responsible for their being without origins and none can use me to provide them with such where none exists. They all will have to go back to whatever existences they were relying on prior to my relocating to Iowa, regardless of how "high" or low their stations in life may be as well as who may be their supporters as I was not placed on earth to provide an army of "do nothing" types wanting much by doing very, very little with "credibility" irrespective of the "self developed standstill agreements" and coordinated manufactured nuptials and births to provide such useless expedient types working together across the both sides of the Ocean with fleeting "legitimacy". Though their links to my heritage are non existent, there are those who would use any scenario to throw impediments in the cause and it is for this reason therefore that this offer is being limited to the extensions, in order that this will no longer be a cause to impede or stand in the way of assistance with regards this offer). This is why one individual or even many acting collectively can never impede the will of God, even though such types can manipulate their way through anything man develops to bring about non existent conditions and think such is shrewd; forgetting that He (God) has a plan for any eventuality (as nothing man devises takes Him by surprise), and I will continue to rely on Him to work out these events according to his plan and timetable even though such types only see me as their obstacle and mistakenly conclude that they can and will succeed where others have failed. However, they all forget the main factor namely, that none can impede the will of God. What a sad existence and misplaced loyalties such individuals must have to be only living to implement unethical activities as a means of survival for others! Note: all links are available on the COMMENTS Page.