At the risk of being accused of being a pinko, commie San Francisco fellow traveler we offer you a great truth from Marx: History repeats itself, first as tragedy, then as farce. The Greek farce — or perhaps satyr play — appears to have favorable resolution for the moment with responsible parties winning the election. (Don’t get too excited–They could just be faking us out.) Anticipating a favorable result the market broke over the nearby resistance as seen in the chart above. The power bar over the horizontal line should presage some smooth sailing — note. Should. The next horizontal line should represent some resistance, but this could well be the response to the downwave.
If there is follow through Monday we will add to our index positions.
Meanwhile we have never had much use for pornography, but an occasional fillip lends a bit of raciness to our otherwise humdrum letters. If you want to see some really disgusting pornography we recommend this Sunday’s New York Times. Pages 10 and 11 of the Business Section. On those two pages are listed the most offensive and objectionable facts about American business today — the compensation figures for the CEOs of the most abusive companies in the country. It is literally astounding how corporate leaders have managed to stack the deck so as to milk the cow and cheat stockholders and employees. It might be appropriate here to note that FDR thought that with the minimum wage that there should be a maximum wage — as we remember about $350,000.
Having been CEO of several companies we are intimately familiar with how the most powerful figure in the corporation stacks the deck — appointing his friends to the Board, hiring “Compensation consultants” who pump up figures from other companies as comparables (they better or they’ll never be invited back (at great expense). It is a rotten and corrupt system and one more example of how everything in the country is up for sale.
CEOs are not worth their extravagant salaries. They are just in position to determine their own compensation — so having no shame they do –to the detriment of everyone else.