Contributors

Monday, August 22, 2011

Uncertainty? Really?

Steve Wynn, CEO of Wynn Resorts, had this to say recently about President Obama during a conference call.

And I'm saying it bluntly, that this administration is the greatest wet blanket to business, and progress and job creation in my lifetime. And I can prove it and I could spend the next 3 hours giving you examples of all of us in this market place that are frightened to death about all the new regulations, our healthcare costs escalate, regulations coming from left and right. A President that seems -- that keeps using that word redistribution. Well, my customers and the companies that provide the vitality for the hospitality and restaurant industry, in the United States of America, they are frightened of this administration. And it makes you slow down and not invest your money.

and

Well, this is Obama's deal, and it's Obama that's responsible for this fear in America. The guy keeps making speeches about redistribution, and maybe we ought to do something to businesses that don't invest or holding too much money. We haven't heard that kind of talk except from pure socialists.

Fairly typical of what we hear every day now from the president's critics. It's the "uncertainty" and the "socialism" that is holding back the private sector. What makes these statements so unusual, though, is what was said earlier in the call.

We had a great first quarter, the best in our history. And we went through it -- we were just around $400 million in the first quarter. We are $447 million this time, and that quarter was about 59% better than a year ago. And in fact, for the 6 months, we're 62% better than a year ago. We are all, in this organization, heartened by the results.

On January 3, -- excuse me, on July 3, I got a phone call. I was in a different city from my colleague, Marc Schorr, and he told me that on the third day of July, we equaled in Las Vegas, our cash flow, our profits of the entire year of 2010. That was a very supercharged thing to hear, but we did $271 million last year and we hit $271 million on the third of July. So for the balance of the year, everything from here on in, in Las Vegas is improvement. And we benefited from a very favorable whole percentage.

So let me see if I have this line of thinking down here...President Obama is a "giant wet blanket" to business...there are examples that "prove" this...and he is a (snore) socialist. All of this has led to the best quarter they have ever had? And it only took six months this year to make what they made last year? Uh.....what?

There is no logic or reason to the irrational feelings these people have. They make statements simply based on personal preference, not reality. They are making record profits and they still hate him. It's no different than someone like me saying that the Dave Matthews Band sucks. It's an opinion with no basis in fact.

Why can't they simply admit that it's the same thing with the president?

17 comments:

juris imprudent said...

Even better than uncertainty - the federal govt in self conflict!

Catch 22 courtesy of the Obama Admin and the law we had to pass to know what was in it!

I have to wonder what it is like to be immune to cognitive dissonance.

Anonymous said...

I hope the republicans win the next election. That way republicans can go back to believing everything is perfect again.

Juris Imprudent said...

That way republicans can go back to believing everything is perfect again.

Like in 2000? Or like the Dems in 2008?

I'm pulling for split govt - it is the only thing that keeps the morons from running wild.

No name said...

Juri have I just met a republican who appreciates checks and balances? You are the first one. This is refreshing.

I truly appreciate how you note morons on each side. I AGREE!

I commented on one of your older posts from the Without Coment blog, couldn't tell if you were being sarcastic

last in line said...

Trouble with that - he's not a republican.

Jaxson said...

What's a Republican?

Hmmmmm.

I don't agree with a lot of that....

juris imprudent said...

Juri have I just met a republican

No you haven't. A normal person might be embarrased by that, but I imagine like all true believers in the Leftboro Baptist Church this will be greeted with a shrug and a "huh?". After all, there are only the faithful and the infidel.

Larry said...

What contradictions, Mark? That even in very tough economic circumstances, some very well run companies will do well in spite of factors that are driving other companies into the ground? Isn't that a bit like arguing that because significant numbers of blacks did well and improved their situation in the first three generations of the last century, that that proves that white racism wasn't real and wasn't holding many more down in poverty?

You haven't the first clue of what the business environment is like. Virtually everything you have to say about the subject is an opinion with no basis in fact.

juris imprudent said...

Uncertainty you say?

NYT seems to think so.

Haplo9 said...

Larry, I think this one is going to fall under the well trod category of Mark Said So (tm).

Mark Ward said...

Wynn is an illustrative example of the contradiction between the fictional narrative about the president and reality. Corporate profits are way up and effective taxes are low for both the wealthy and corporations. These are facts that you have to accept. Another fact you have to accept is consumer spending (2/3rds of our economy) sucks because less people have money. So, Wynn is griping about the wrong things and blaming the wrong person.

And, Larry, whenever I "know nothing" about a topic, it usually means that I'm right and you don't like it. Will you ever be able to live with the fact that I am likely right about many things? Doubtful, when your only substance is proving me wrong.

Larry said...

Why would I ever have to live with it when so much of what you post is so very easily verifiable as wrong? Why are corporate profits up while employment's down? Boiled down, it's because the Fed's easy, easy money policy has interests down almost to nothing, while companies have cut all non-essential personnel and cut costs everywhere, which means that they can produce items for less. And regardless of your personal opinion that the climate of tax and regulatory uncertainty is a myth (try peddling that pablum to Boeing!), businesses generally aren't willing to hire or make big investments unless the risk is very low.

Mark Ward said...

I think you are missing my point, Larry. When someone has the best quarter they have had in history and earns more money in a half year than they did all year the previous year and then turns around and says, "This all sucks and it's the president's fault" you have to question the motivations. I mean, I know what yours are-prove Obama wrong. You (along with others here) will be relentless in pushing the narrative that Obama is bad for business despite all evidence tot he contrary. Why this is so baffles me but I'm sure it has something to do with the whole insecure bully being bested thing.

I guess Buffett's analysis of how investment works also fell on your deaf ears. He may be one of the most successful businessmen in the history of the world but he since he doesn't agree with you, he knows nothing about investment...just like I know nothing about _______. Now that I think about it, I'd like to know all the nothing that he knows!

Larry said...

Mark, there you you with the strawman, again. No one, least of all me, has said that Buffet doesn't know anything about business. Once again, you're the only one who's said or written anything like that, as you bear false witness against me and others. Have you no shame, sir?

And if Buffet doesn't think he pays enough in taxes, then why the fuck doesn't his company just pay the taxes the IRS thinks it owes instead of fighting it out through the courts for going nearly a decade now. Methinks he's a two-faced fraud. But I certainly don't think he doesn't know anything about business, as those voices in your head tell you I must.

If your arguments are so strong, why do you lie so much?

Mark Ward said...

Then why are you attacking his character? And you are still avoiding dealing directly with his initial statement. As I said in the other post, stick to the debate about the issue he raised. Critically examine his statement and make counter arguments as to why they aren't valid.

By bringing in the issue of corporate taxes, you are shifting the argument and avoiding the question of personal income and how they are not paying what they should be paying. To me this means, the tax rate for the upper percentile under Clinton, no Cap gains breaks, and loopholes closed so they simply pay a progressive rate that is higher (not lower) than people that make less money.

If you disagree with this, explain why and use evidence. Show me how trickle down works it that's what you think.

Larry said...

Mark, after deploying that offensive strawman meant to discredit me personally, you actually have the fucking nerve to complain when I mention my opinion of those business practices of Buffet's that you seem to regard so highly.

As I've said repeatedly, but you now conveniently ignore, our tax system is screwed up, and needs to be fixed. And by fixed, I don't just levying more taxes on the rich.

Funny thing is, you want the rich's money to go to government, yet Buffet's planning to give it all away and leave the government nothing, not least because he's a great deal more confident that the money he distributes won't be squandered. How can you handle the cognotive dissonance that must generate if you think about it and what it implies. Oh right, you won't think about it.

Mark Ward said...

Well, at least we agree that the tax system needs to be overhauled. Everyone, not just the rich, should pay their fair share of taxes.

I also think you are conflating a few things with Buffet's money and his statements about taxes. He is talking about systemic flaws in our system that you agree need to be changed. Where he leaves his fortune is up to him but I doubt his reasons for not leaving it to the government have to do with his lack of faith in it. Government is very effective at some things and not so effective at others. I think it's pretty honorable of him that he's trying use his money in both public and private ways to solve problems. Balance is always a good thing.

I think you need to somehow break out of the "government always squanders my hard earned money" meme. I'm not sure it's possible but it seems to me to be a very myopic way of going through life. It's really not even an accurate assessment from a financial point of view either. Even after S&P downgraded our credit rating, people still invested in the government, right?