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TAMPA, FL - JANUARY 24: Republican presidential candidate and former Massachusetts Gov. Mitt Romney greets supporters and gives autographs after a speech at the National Gypsum Company January 24, 2012 in Tampa, Florida. Romney's speech was billed as a "prebuttal" to tonight's State of the Union speech by President Barack Obama (Photo by Chip Somodevilla/Getty Images)
That's what Michael Keating, formerly of the Boston Consulting Group, thinks. A president who comes from the brutal world of private equity? Terrifying. Keating outlines the fear in the LA Times:
Private equity consultants are not real business people, if real business people can be defined as entrepreneurs who want to build something of lasting value that can employ members of their community and make profits for their shareholders, whether public or private. A private equity consultant is more like an Excel spreadsheet with legs that looks at the "target" company through the lens of return-on-investment and cutting costs to the bone. If those costs are people, well, that's just capitalism in action. If an opportunity exists to expand a product line and it becomes necessary to hire some engineers and sales people, then welcome aboard. It's all a very finely tuned calculation that has nothing to do with what most people recognize as doing business. It is an abstract exercise, at best, that most of these ladies and gentleman have learned at places like the Harvard Business School, the University of Pennsylvania's Wharton School or wherever business is taught as warfare rather than as a contributor to the social good.
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The Google logo is seen at the Google headquarters in Mountain View, California. on September 2, 2011. AFP PHOTO/KIMIHIRO HOSHINO (Photo credit should read KIMIHIRO HOSHINO/AFP/Getty Images)
It's actually neither. Rather, it's Google being Google. The mighty search colossus missed earnings badly the other day. Meanwhile, Apple just crushed it, earnings-wise. And of course the Facebook IPO looms. Google can't be content to operate like the world's greatest technology lab anymore. It needs to leverage what it's great at or lose out to the competition.
The new Apple store at the Americana in Glendale.
Any questions? The consensus on Wall Street was that Apple would earn $10.14 a share and record $39 billion in sales for its first fiscal quarter, according to Bloomberg. Instead, it did $13.87 a share on $463 billion in sales. Eyes are still being put back in their sockets:
"Those numbers are just unimaginable," said Michael Obuchowski, chief investment officer at First Empire Asset Management, which has $4 billion under management, including Apple shares. "It’s still an extremely well-managed company and they are showing that the product pipeline is sufficient even now to generate growth rates that are unrivaled."
Apple is now pretty darn close to being a $400 billion company, by market capitalization. It currently has two major things going for it: it's vacuuming up more and more market share for smartphones, as these devices become much more popular and begin to define the future of mobile computing; and it's ideally positioned to thrive in the post-PC age, as consumers shift away from old-school laptops and desktops and move to ultrabooks and tablets.
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MYRTLE BEACH, SC - JANUARY 16: Republican Presidential candidates, former Massachusetts Gov. Mitt Romney (L) and former U.S. House Speaker Newt Gingrich (R-GA) share a laugh during a Fox News, Wall Street Journal-sponsored debate at the Myrtle Beach Convention Center, on January 16, 2012 in Myrtle Beach, South Carolina. Voters in South Carolina will head to the polls on January 21st. to vote in the Republican primary election to pick their choice for U.S. presidential candidate. (Photo by Joe Raedle/Getty Images)
Mitt Romney released his 2010 and 2011 tax returns today, revealing that he is, as we already knew, R-I-C-H. What's eye-popping — and what explains why Romney has been reluctant throughout his political career to provide a window into his finances — is how low his federal taxes are, relatively to people who make their money on "earned income," such as wages and salaries.
The numbers are large. In 2010, Romney made $21.6 million on 2010 and paid $3 million in federal taxes, and effective rate of just 13.9 percent. In 2011, he reported making $20.9 million in 2011 and expects to pay an effective rate of 15.4 percent.
If it's any consolation to people who routinely pay taxes the mid-20-percent bracket, the Romneys overpaid in 2010, to the tune of $1.6 million. Time for a new accountant, Mitt!
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Rep. Barney Frank (D-Mass), speaking at 'The Next Global Crisis' session of the Annual Meeting 2010 of the World Economic Forum in Davos, Switzerland, Jan. 27, 2010, at the Congress Centre.
The World Economic Forum — often described as a gathering of the world's business, government, and financial elites — will touch down in Davos, Switzerland this week. It's currently being much discussed and blogged about, especially given that the repercussions of the financial crisis are still being felt. Unemployment in the U.S. is still alarmingly high, at 8.5 percent. Europe still seems pretty far from fixing the deep problems of the euro and of averting a wider sovereign debt crisis. Growth in the developing world is slowing.
So in a way, Davos 2012 isn't about elitist hobnobbing but rather about Davos saving...itself. The pressing problems of the world aren't on the agenda. The ongoing economic travails of the West are. Writing for Reuters, former White House official Larry Summers offers the following: