Wow, I was taken aback by this story in Bloomberg - it's been a great week for quotes. [Walmart Executive: "There are Families Not Eating at the End of the Month"]
One theme I was stressing about 5000 posts ago in 2007 was everyone cheers our political leadership when they do nothing... our best hope is they do no more damage and are neutered. Please let them bide their time until they "graduate" from Congress into that multi-million dollar position as a lobbyist. Our expectation level for our "representatives" is so low ... all we hope for is they offset each other; that's what is has come to. (pathetic) That shows you how damaging they are to the country. I was saying back then it had reached a point where not only were (a) our political leaders not helping us nor (b) were they so ineffective as to be neutral to the country's progress, but indeed (c) at that time they had reached the point that they were like tire spikes in the road.
Glad to hear a CEO say the UNpolitically correct thing. Thankfully he did not single out one party versus the other or else the extremists on both sides would begin the "it's all their fault" finger pointing. Kudos Mr. Farr - I can at least respect someone who is taking away U.S, jobs but has the courage to explain (partially) why they are doing it.
Not to worry readers... surely more healthcare and government jobs will replace Emerson's jobs too. Because money to pay for jobs in those 2 sectors comes from the heavens. No need to manufacture anything in the U.S... well, there is a need for 1 thing. More fiat paper currency.
- Emerson Electric Co. (EMR) Chief Executive Officer David Farr said the U.S. government is hurting manufacturers with regulation and taxes and his company will continue to focus on growth overseas.
- “Washington is doing everything in their manpower, capability, to destroy U.S. manufacturing,” Farr said today in Chicago at a Baird Industrial Outlook conference. “Cap and trade, medical reform, labor rules.”
My suggestion to Mr. Farr is to turn into a bank holding company and grow to the size that Emerson becomes too big to fail. Then every person in America shall be sacrificed so his company could turn a profit as long as 1 single light bulb is on. Ask the folks at Citi, Bank of America, Wells, Goldman (the "bank holding company"), for tips. Manufacturing? So 1960s! No need for it in the new paradigm finance-based, daytrading homes economy.
- Emerson, the maker of electrical equipment and InSinkErator garbage disposals with $20.9 billion in sales for the year ended September, will keep expanding in emerging markets, which represented 32 percent of revenue in 2009.
- About 36 percent of manufacturing is now in “best-cost countries” up from 21 percent in 2003, according to a slides accompanying his speech.
Things like that last bullet point dismay me... but I am told by "trickle down economists" it's a great thing. Because one day the people in "best-cost countries" will buy things from America, rather than their own countries. Even though we won't have any manufacturing by that point. (what exactly will they be buying from us aside from mortgage backed securities?)
Solution? Destroy the dollar. (mission progressing as planned)
- Farr, in his presentation, also said manufacturers are being hurt by taxes and regulation. He said companies will create jobs in India and China, “places where people want the products and where the governments welcome you to actually do something.”
Again, just in the wrong industry. As long as you do something involving "financial innovation" Washington wants you, they welcome you... they need you. (specifically your lobbyist dollars) Health insurer or real estate related business also works if you can't get that bank license.
- Emerson has shed more than 20,000 jobs since the end of 2008 to lower expenses. “What do you think I am going to do?” Farr asked. “I’m not going to hire anybody in the United States. I’m moving. They are doing everything possible to destroy jobs.”
Again, a lot of this is structural in a flattening globe... there is no changing it. But certainly our political leadership is "helping" to accelerate trends, not allowing the country time to adjust, innovate, build replacement industries. Encouraging spending & speculating is job #1 while punishing savers is job #1A. A recipe for prosperity in anyone's book!
Oh well, I read today JPMorgan (JPM) wants to hire 1200 new mortgage brokers - back to the 2003-2006 bubble we go. If we're very good people we might be blessed with concurrent real estate and stock market bubbles ... because that's sustainable and healthy! Making stuff? Don't bother me with that... boring.
Disclosure: Author does not own above-mentioned stocks