U.S. Closed: Ed’s Daily Notes for October 1st   7 comments

Washington Times: Government shutdown begins as gridlocked Congress gives up

Congress adjourned early Tuesday morning without renewing funding for the federal government and the White House issued orders beginning the grim task of shutting down “nonessential” services across the nation.

Senators gave up first, adjourning soon after midnight, while House lawmakers stuck it out past 1 a.m. But with a middle ground proving elusive and senators refusing to negotiate over changes to the health law, the House too gave up and vowed to try again later in the day.

With no prospect of a deal to continue funding into fiscal year 2014, the White House budget office issued an order just before midnight to begin closing operations, sending 800,000 federal workers on furlough and leaving hundreds of thousands more employees required to report for work though without the guarantee of paychecks.

Amazing, but the world hasn’t ended? Nor will it. Don’t let the Media’s hand-wringing over this affect you as an investor. Remember the first rule of investing: “Don’t fight the Fed.” The Federal Reserve is running just fine, and QE is still in place.

The Guardian: Golden Dawn arrests take Greece into uncharted waters

I won’t quote the article above, but I will say the correlations with the rise of the Nazi Party in Germany are uncanny. If history repeats, I would expect a Golden Dawn leader to be in charge of Greece in about 10 years, which was the amount of time between Hitler’s arrest for the Beer Hall Putsch and his appointment as Chancellor.

All Things D: Is Ford’s Alan Mulally Now in the Lead to Be New CEO of Microsoft?

A fascinating rumor around Microsoft’s next CEO:

According to sources close to the situation, Ford CEO Alan Mulally has vaulted to the forefront of the candidates to become the new CEO of Microsoft.

Earlier this month, the well-known leader of the car maker categorically denied he was leaving the Detroit company in an email to me, writing: “I continue to be focused on serving Ford … and I have my red Ford vest on right now!!”

The typically ebullient Mulally was referring to the iconic sweater he often appears in with a Ford logo on it.

People with knowledge of the situation said that while the 68-year-old Mulally — who has been CEO of Ford for seven years and is a well-known business star — was not seeking the job at first, he has become more amenable to the idea in recent weeks.

Among the factors: Mulally was a former CEO of Boeing Commercial Airplanes in the Seattle area and has long wanted to return there, where he continues to keep a home. In addition, he was a close adviser to Microsoft CEO Steve Ballmer in his recent effort to create a new management structure for the company.

In another interesting move, earlier this month, Reuters reported that the Ford board had given Mulally the ability to step down earlier from his position than is called for in his contract. Some speculated at the time that it could point to a position in the Obama administration.

Or perhaps in a big tech company in desperate need of a jolt.

This would be devastating to Ford, and a big plus to Microsoft, especially as they take over Nokia. Keep in mind, Mulally has manufacturing experience, which is something Microsoft will need. There is a big difference between manufacturing and software. While Microsoft could rely on former Nokia CEO Stephen Elop, why do that if you can get Alan Mulally? If you can afford the best, get the best, and Microsoft can easily afford Mulally.


Posted October 1, 2013 by edmcgon in Federal Reserve, News, Politics, Stocks, Technology

7 responses to “U.S. Closed: Ed’s Daily Notes for October 1st

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  1. Not only Greece is following the history of the Weimar-republic and Nazi-Germany, also Spain (public protest has been made more difficult the past week) and Italy (berlusconi-saga continues).
    There are a lot of alikes between now and the interbellum in Europe, different players, but the acts look the same.

    • plas,
      The big difference: I can’t compare Berlusconi to Mussolini. Berlusconi is too much of a clown.

      • Berlusconi is indeed a clown, but a clown who would jeopardize the faith of his country for his own needs – as he is doing this week.
        And I don’t know if a new Adolf has risen somewhere in Europe. Nobody expected Adolf to rise towards chancelor (if you are still able to call it this way) when he was put into prison. Everybody in Europe (and elsewhere) should read “Mein Kampf” with the footnotes. Véry interesting lecture to understand Nazi-Germany. If it would be obligated literature in school, I think the chances where fewer the Nazis will return. By demonizing Hitler, we are making a big mistake. He has dome great things too. Golden Dawn is doing great things in Greece too, but that doesn’t mean Golden Dawn is innocent.
        Of course there are differences, a lot actually, but the similarities are big … and we,as a European society, are ignoring it – but that is what Europe did with Hitler too, until they couldn’t ignore him anymore.

  2. So if the government is shutdown then we can stopy paying our Federal Taxes, right?

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