Constant's pations

If it's more than 30 minutes old, it's not news. It's a blog.

Thursday, September 16, 2004

Will the CEOs get a tear because of their personal losses in Florida?

The hurricanes, like 9-11, are the perfect place for CEOs to create honey pots. For the layman that means, "They're going to deliberately overstate their losses" and then have a miracle turn around.

Alot of corporations have never actually made money; what they do is shift expenses into bad years, and then make the "marginally profitable year" a "huge success." Don't be fooled.

What CEOs like to do during "times of crisis" is to dump all their future expenses they can inot this accounting periods; create an illusory recovery in the future; and then use that "magic" as evidence of their "talent". Don't be fooled.

These CEOs and Corporate Boards are complaining about losses so that the auditors can get buttered up. Don't be fooled.

To those CEOs who have property in Florida because you want to ensure it "doesn't get attached" when you are a defendant in a securities litigation, wow: Doesn't the world just have a nasty way of finding you. Just like those borkers in the WTC who did the deals to screw out Americans of their money during the dot com bubble.

For just a few dollars, they were willing to sell their souls. Beware, American CEOs are not reliable counter parties in transactions. Look what little it took for them to "put integrity after finances"; and you want anyone to shed a tear for them? It is the pressure of American CEOs that drove this nation into a needless war in Iraq: Get the masses to stop asking questions, silence the protestors, and lets get on with a recovery. Well, there's no recovery, what's their next option, invade Iran?

Little sympathy for the financial institutions on this list; they've just written off the losses and dumped them in a "bad 2001 year" -- the current "profit recovery" is an illusion.

Also, I don't have much sympathy for corporations and businessmen who have built fancy hotels along the coast and now have sand in your parking lot. Your buildings are still standing, and the insurance is going to cover it. The real problem you're going to have is when the public says, "I'm going to stay out of Florida." Can you say, "inadequately rents to sustain your required casfhflows."

Ouch, baby, those debts are going to hurt. Looks like you're going to have to sell some of that collateral in all those other places. Oh, you have all your assets in Florida? Why didn't you diversify? You should know better.

It is truly amazing how America will rally around a cause, but when the public truly needs help on an individual basis everyone throws up their hands saying, "You should know..."

Why isn't the same arrogant attitude of "you should know that the police are idiots" also said with equal "cavalier-i-ness" toward those businessmen in Florida: "You should know that building property on the beach might subject your assets to complete loss."

Global warming. The devastation we've seen in Florida is going to look like nothing. Alot of these beaches are going to be buried in water.

This is only a taste of what's going on in Iraq. If you think the devastation in Florida is bad, or you're inconvenienced because you can't find some ice, think about the Iraqis who have been without power for over a year. A few weeks in Florida, and I don't think Americans really understand the problems in Iraq.

Overall, I'm not seeing many buildings totally destroyed as we've seen on battlefields in Iraq. It's hard to shed a tear for corporations when the only damage to their building is that they've lost a few buildings.

One might argue that this is a "good testing ground" for buildings--in that if they survive this many hits, they've got to be good. Actually, there's a problem with that theory. The buildings aren't designed to have this many cycles. If you look at a bridge that is undergoing oscillations in the wind, eventually it will snap. The buildings have yet to prove themselves over time in the wake of Jeanne.

There are buildings along the coast that look safe, but they're teetering with internal structural cracks. This doesn't doesn't consider the sink holes. It's going to take some time to assess the real damage to those buildings that appear to be safe. Even if there are no hurricanes, it remains to be seen what impact this has on "people's concerns about long-term structural integrity" in Florida. People are smart enough to stay away.

Some have suggested that "something should be done" about Hurricanes. Well, if we create some device that gets rid of these storms, will the interior of the country still get enough water?

It would be nice if the film crews compared the "before and after" images; the live shots do nothing to really show "how much sand is on the coast" or "how much the roads" have been moved". In some cases, the roads look fine, but there's no way to tell that the area around the roads was once covered with vegetation.

Well, Florida certainly has a new type of beach front property: It's now deeper in the water, and the legs are looking more like Tropical-Island bamboo poles. Which network will create a reality show about a family climging its way out of another hurricane?

There's been alot of talk about the devastation in Florida. To those who have been personally harmed, sorry that things have not worked out. Callous-lawyer-sharks are on the way.

And her name is Jeanne. CEOs and CFOs. Hope the door hits you while you're running away--you can kiss my ass! This is what happens when you think you can "hide your property in Florida." Reality found you. And more of it is on the way.