The Financial Crisis…Connecting the Dots.
By Mike Myatt, Chief Strategy Officer, N2growth
For those of you who still wonder how our nation finds itself entangled in this current financial crisis, I want to share the following video which I believe very accurately connects the dots. I would encourage you to watch this video in its entirety, and then forward it on to others. The most important Presidential election in recent history is right around the corner, and your vote matters. I would ask you not to fall prey to the political rhetoric and gamesmanship, not succumb to panic, not to listen to media bias, and not to acquiesce to pressure from the politically correct. This country cannot afford more of Nancy Pelosi, Harry Reid, and Barney Frank. This country can not afford one day of Barrack Obama in the White House. This country needs the real leadership of John McCain.
I wasn’t sure Congress had the intestinal fortitude to do it, but the House did step-up and reject the proposed Bailout plan today…Much to the chagrin of Nancy Pelosi, Harry Reid, and Barney Frank, the majority of Republicans and 95 Democrats actually listened to the American people and said no to the Bailout. My hope in our elected representatives (at least some of them) has been temporarily restored. The Republicans have an alternate plan that will be put forth later this week that will more closely represent the “workout” I’ve described in previous posts than the Bailout that was killed earlier today. With your continued phone calls and e-mails to your representatives inside the Beltway we can avoid a disastrous Bailout and actually force Wall St. to pay for their own mistakes. Don’t give up the battle…For those who are fearful about the markets reaction today, I’ve outlined a few thoughts on the following page for your consideration…
Will today’s meetings in Congress produce a Bailout, or will the end result be just another cobbled together train wreck in the making? Is the Bailout a prudent step forward for our nation, or is it just another band-aid solution forestalling the inevitable? So, will Congress agree to a deal today? If so, will it be the right deal? Will it work? If not, what will be the market ramifications? In today’s post I’ll provide you with my thoughts on the aforementioned questions, as well as put forth some economic observations and alternatives for your consideration…
Rogue CEOs…given the recent failure of banks and financial institutions previously thought to be untouchable, there has been a tremendous amount of justifiable venom being spewed at the CEOs of these firms. Their ignorance, and in some cases their arrogance, allowed these rogue CEOs to operate outside of normal business rules, conduct self-serving agendas, and partake in self-dealing transactions all while receiving outrageous compensation. Before I go any further, let me state that I believe we should understand that the overwhelming majority of CEOs operate within the bounds of reason and ethics consistently placing stakeholder interests ahead of their own. The real question we should be asking is where were the boards of directors during this period of mismanagement? You see it is the board who is responsible for holding the chief executive accountable. Even where you have a CEO who is inclined to misbehave, an actively engaged board of directors simply won’t allow it to happen. In todays post I’ll examine the role of the board of directors in keeping CEOs accountable… 
I have been flooded by e-mails today asking for my thoughts on yesterday’s financial news. Lehman goes BK, Merrill Lynch is bought by Bank of America, the Dow closes down more than 500 points, AIG is on the brink of failure, so what’s next? My message is this; don’t panic…plan. Those of you who are frequent readers of this blog know that I predicted these financial events all the way back in 2006, provided subsequent updates and warnings in 2007, and have offered cautionary remarks this year as well. By way of background I invite you to read: “
CEO job searches are extremely competitive in today’s market. Other than running for political office, there is no interview process that will subject you to such a rigorous vetting process. I was recently interviewed for the September issue of ”CareerSmart Advisor” in which I was asked to articulate what it takes to successfully secure a CEO position. In the text that follows I have provided a copy of the questions I was asked, as well as my answers, in hope that this information will assist you in preparing for your next job search…
Today’s Myatt on Mondays question comes from an entrepreneur who asks: “What provisions can I place into a purchase and sale agreement to limit my post disposition liability when selling my business?” While there are virtually endless numbers of provisions that can be incorporated into a purchase and sale agreement it is important to remember that in most circumstances when a seller includes language that mitigates his/her risk that the buyer will want a corresponding price adjustment. That said, the reality is that all negotiated business points are just that; negotiated…they are dependant upon how badly a seller desires to dispose of the business, how sophisticated the buyer is and how motivated the buyer is to acquire the business. In today’s post I’ll share some of the more common indemnification provisions that can be used to manage a seller’s risk…