The seamless, borderless surveillance society has a new dimension: MUSCULAR. Under it, the NSA and British GCHQ secretly break into the “clouds” of US companies to syphon off user data on a large scale. Illegal in the US. But the cloud is a worldwide phenomenon.
“It’s a great time to sell,” mused a pension fund investment officer. And Blackstone Group, the world’s largest private equity firm, is doing exactly that, feverishly, relentlessly, hand over fist, at peak valuations, cashing out. What does that mean for the rest of us?
Brokers, financial advisors, and wealth managers are a recalcitrant bunch, suddenly, after having gotten their manicured fingers burned on a few super-hyped IPOs, and now they just refuse to get exuberant about the Twitter IPO. At least that’s what they indicated in a survey. But individual investors, well, that’s another story.
BYD, the name of a Chinese electric vehicle and solar panel maker, stands for “Build Your Dream.” Maybe that’s what they’re trying to do in China. But here, they’re building a nightmare: broken promises, falsehoods, design flaws… all lushly funded by American taxpayers. And they paid Chinese workers in California $1.50 per hour to do it.
Stocks balloon, we’re incessantly told, because revenues are rising due to great products, ingenious strategies, or brilliant marketing; and because earnings are rising due to, well, if not rising revenues, then cost cutting, moving production overseas, squeezing suppliers…. But what if revenues sag and earnings plunge, not for a bad-hair quarter, but for years, and the stock still balloons?
I’m not picking on IBM. I’m almost sure they have some decent products. So they had a crummy quarter – the sixth quarter in a row of sales declines. And their hardware sales in China have collapsed since Snowden’s revelations about the NSA and its collaboration with American tech companies. But in one area, IBM excels: its hocus-pocus machine.
The first shot was fired on Monday. Teradata, which sells analytics tools for Big Data, warned that revenues plunged 21% in Asia. Wednesday, it was IBM’s turn to confess: hardware sales in China had collapsed. Every word was colored by Snowden’s revelations about NSA’s collaboration with American tech companies, from startups to mastodons like IBM.
“The company could disappear,” said Alcatel-Lucent CEO Michel Combes, not exactly the kind of wondrous hype CEOs normally sputter to bamboozle people into plowing their money into the company’s stock. The end, after two decades of ingenious Wall-Street engineering, fee extraction, fanciful accounting, executive wisdom, and brilliant strategic thinking.
The amount in Federal assistance received by families of workers in the fast-food industry, who’re dogged by low wages, part-time work, and scarce employer-provided health benefits, amounted to $7 billion per year. A way for the $200 billion industry to shuffle off part of the costs of doing business to the hapless taxpayer.
They’re getting hilarious, the shenanigans on Wall Street. Revenues have been lousy all year, and despite feverish cost cutting, earnings are sliding. The third quarter has been over for almost two weeks, but Q3 earnings estimates are still being pushed down. A lot! So that companies can “exceed expectations.” They’re now at stagnation levels. And stocks soar.