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SPECIAL ANNEX NEWSFLASH
Salomon CEO Agrees with Annex: Watch Out At...
Says Laws Need to Be Changed Before Investor Confidence Can Return
PHOENIX, June 21 - Mark this day...
summer solstice 2002. Just a few moments ago, we were stunned (and
pleased) to hear what John Gutfreund had to say, speaking "live" on CNBC (at about 2:16 EDT).
The former Salomon CEO,
who was forced to resign in 1991 amid another corporate scandal, had this
message for the investing public:
(Realize that) you're in a (Wall Street) casino, and the odds are against you... the
laws have to be changed.
Well, we said the same thing in a
1997 letter to the SEC and to a number of U.S. Senators (see "Some
IBM Insiders Cashed In..."). But no one was listening
five years ago, when we called for a change in Wall Street rules.
We are also "pleased" because we have been saying at least
since 1997 that Wall Street has become a casino, and that corporate fundamentals have little to do anymore
with stock values.
Now that several corporate scandals break out almost every day, it may
be useful also to remind our clients and the investing public of what we said
four years ago in "Corporate
'Cabbage Patch' Dolls of the 1990s" (Annex Bulletin 98-39, Oct.
1998). That it's their own fault if they allowed themselves to be
played for suckers:
As in any casino, it takes a sucker
to enrich the "house" through the gambler's greed or
gullibility... the Wall Street casino is for suckers
Great American Hoover," this writer's Washington Times column
Can't you hear that great sucking
sound of the Wall Street Hoover which was revved up in the aftermath of
the crash of Oct. (1997)...
Will Wall Street's Bubble Burst?", this writer's Washington Times
Wall Street Hoover runs on a
mixture of hogwash and Main Street's greed....
Armonk Meets Wall Street, Greed Breeds Incest", an Annex
Bulletin, Nov. 1998:
If the latter day Armonk connotes "Greed Inc." (and most indicators point
that way), then the latter day Wall Street stands for "Incest Inc." (as most
signals also suggest). And where Armonk meets Wall Street, greed evidently breeds incest.
While the Big Blue was buying back its stock by the tens of billions of dollars, IBM
insiders were selling their shares by the tens of millions of dollars. Talk about
self-dealing. And NOT putting their money where their mouths were.
Street Boom, Main Street Doom," this writer's Chronicles magazine
Today's stock exchanges have become
almost totally decoupled from the economic reality of the companies
whose shares they trade. Instead, they are Casinos at which the Big
Business elite do what "Joe 6-pack" does when and if he can
afford a trip to Las Vegas. Both play the odds on whim and emotion; the
former wearing pin-striped suits; the latter in jeans and T-shirts.
Modern Wall Street is a game of
cashflows, not that of GDPs (Gross Domestic Products)...They are a part
of a ruse; a brainwashing effort to help the Wall Street Hoover to suck
the savings out of the Main Street suckers' mattresses.
a Nation of Producers, to a Nation of Gamblers ",
a 1999 Annex Bulletin:
The 'get rich quick' life's
philosophy, is transforming America from a nation of producers to a
nation of gamblers.
And so on... click on the following links to read our
other stories on the same theme:
St.'s Conquest of America"
... The "Wall Street Hoover". Such a
"socialization of America" enabled the Big Business elite to
install a direct line into our wallets, sucking out our money ...
"Small Caps Sinking First"
... activities. Like a gambling casino, it is largely
driven by investment cashflows, not profits or losses of the companies it
Slam-Dunk of Bunk" - (Jan. 20, 2000)
... Yes. Why? Because any sane analyst would have
left the crazed Wall Street casino long ago. ... The sin at the Wall
Street casino these days is to be found out. ...
of IBM First Quarter Results (Apr 17, 2002)
... We used to refer to Wall Street of the 1990s as a
casino. Strike that. ... Or a casino with a bordello on the side, if you
prefer. “Independent” Analysts? ...
of Stock Market Reaction to 911/WTC (Sep 26, 2001)
... A cashflow-driven market, which is what
we’ve been saying for years the Wall Street casino has become,
simply shifted its assets away from some US equities ...
Fudge Factory (Apr. 9, 1999)
... Nor were the casino players concerned about the
fact that it is now nearly impossible to reconcile IBM's 1998 business
segment information with prior years ...
the Big Blue Dog"
... So the Wall Street Casino, which trades on
perceptions, not facts, is "the ultimate measure" of a company's
performance, according to the Big Blue's chairman? ...
Best Years Are Behind" (Aug. 10, 1999)
... Further proving the point that the market has
become little more than a glorified casino with minimal relationship to
business issues of the companies it trades ...
Bulletin - 98-16 ("the new blue")
... It is factually unsupportable because less than
one-third of Americans play at the Wall Street Casino despite its long
"bull run" and decades of financial hype ...
Prince of "Fluff" Spin More "Fluff" into Market...
... deal. And the gullible "investors,"
read gamblers at the Wall Street
Casino, lapped it up as if the "fluff" were real gold. Which ...
of Accenture's 2001/1Q02 Results (Jan 11, 2002)
... Plus its stock is traded at the Paris bourse,
not at the Wall Street casino. So which was the IT services company whose
stock topped all competitors since Sep. ...
Easy Come; Easy Go"
... have been dealing in dill pickles,
indelible ink or snake oil, rather than in PCs - for all the difference
that would have made to the Wall Street's casino ...
Flash-in-a-Pan Perot" (Aug. 20, 1999)
... results and its stock performance is yet another
example of a disconnect between reality and perceptions which rule the
cashflow-driven Wall Street casino. ...
of The City, Too? NYT's Faux Pas (Dec. 30, 1999)
... with the Free Market." Each article is written by
the suckers for the suckers among the Wall Street La-La Land gamblers, to
which this downtown New York casino ...
Faces of Globalism; Yin and Yang; Princes and Paupers"
... executives are collecting. It's just that
the Casino has so far managed to contain the stench. For the most
part, anyway. Instead, the ...
Big Blue Salami (June 19), Sam's Dull Scalpel (June 4),
IBM Write-offs (May
"No New News at IBM" (May
15), "Looming IBM Layoffs" (May
14), "Sam Is No 'Change Agent'," (May 6), Additional
Stock Buybacks Authorized (Apr.
"IBM 5-Yr Forecast: From
Here to Eternity?" (Apr. 2002), “Tough
Times, Soft Deals,” (Apr. 25, 2002), "A
Disastrous Quarter," (Apr. 17), Industry
Stratification Trend (Mar. 30, 1990), “Gerstner’s
Legacy: Good Manager, Poor Entrepreneur” (Jan. 2002),
Blue Starting to Unravel," (Apr. 8, 2002), SEC
Launches Formal Probe of Wall Street Research (Apr. 25,
to Tighten Stock Option Rules” (Apr. 5, 2002), "Sir
Lou OutLayed Lay!" (Apr. 1, 2002), "IBM
Pension Fund Vapors," (Mar. 23, 2002), Is
IBM Cheating on Taxes, Annex Bulletin 99-17 (May 1999), IBM
5-year Forecast 2001: An Unenviable Legacy (June 2001),
Up IBM!" (Mar. 1996), Fortune
on IBM (June 15, 2000), “Smoke
and Mirrors Galore,” July 2000), Annex
Bulletin 98-14 ("Wag the Big Blue Dog"), Armonk's
Fudge Factory (Apr. 9, 1999), Where
Armonk Meets Wall Street, Greed Breeds Incest
(November 1998), Stock
Buybacks Questioned: Is IBM Mortgaging Its Future Again?, 97-18
Insiders Cashed In On IBM Stock's Rise, Buybacks" 97-22, 7/27/97,
Big Blue Back?," 6/10/97; “Executive
Suite: How Sweet!,” (July 1997), "Gerstner:
Best Years Are Behind", Aug. 10, 1999),
Best Years Are 3-4 Decades Behind Us" (July 1999), "Lou's
Lair vs. Bill's Loft" (June 1999), "Corporate
Cabbage Patch Dolls," 98-39, 10/31/98; Djurdjevic’s Chronicles
magazine October 1998 column, "Wall
Street Boom; Main Street Doom", “Louis
XIX of Armonk,” (Aug. 1996), "Mountain
Shook, Mouse Was Born" (Mar. 25, 1994) etc.]
Or just click on
and use "financial engineering" or similar