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December 2011

What’s the Risk of Backing Newt Gingrich?

Hundreds of the shakers and movers in the Republican party AND the Democratic party are doing their risk assessments this week on who to openly support, and doing the risk calculation on whether it is better to wait and see what emerges, or make their comments/endorsements now and worry about the fall out later!

Here is the kind of risk model for politics that people use, often unconsciously- to make those decisions. Political risk is especially tricky because there are 2 stakeholders to consider:

1. what’s good for ME personally
2. what’s good for THE PARTY, DISTRICT, or COUNTRY.

Here’s a list of threats that politicians worry about in a situation like this:

1. Lose my current position
2. Lose my Power in the Party/Coalition/Media
3. Lose campaign contributions
4. Lose voters
5. Lose tea party support
6. Lose respect from peers
7. Lose future election
8. Lose income
9. Look wrong in the media
10. Create bad sound byte
11. Face Reprisals Later from Establishment
12. Lose Media Support (however it exists).

More tomorrow on how to value the assets of an ongoing campaign.



Crime and Punishment II – Sentencing of Rod Blagojevich

Today marks a historic day in the State of Illinois.  While the previous governor is still in prison on corruption charges, out-going, loud-mouth Rod Blagojevich is in court to receive his sentence on federal corruption charges.

This is a great moment for the judge and the judicial system to hand out a sentance that will help PERMANENTLY end the endemic corruption in the Illinois executive branch.

Americans always point out corruption issues in other countries — but this is the MidWest — the Heartland of America.  In fact, I know people who ONLY hire people from the midwest because they think they are more honest and more hardworking.

So I hope that this verdict will uphold justice because I firmly believe that a country is only as good as it’s justice system.  It defines everything else that happens (read my previous post on the SEC failures to enforce).

Every judicial decision, even a non-decision, sends out a strong message to the next potential corrupt politican that the State of Illinois, and the US as a whole, cannot allow corruption in our elected officials!

 



HAS 60 MINUTES EXPOSED THE SEC SECRET – No Penalties for Big Banks?

On Sunday evening, December 5th,  60 MINUTES aired what I think is a ground-breaking bit of investigative reporting on how the SEC allowed big banks and mortgage companies to violate Sarbanes Oxley (SOX) requirements with total impunity.

Since the American public is still suffering from the mortgage meltdown – they are looking for answers and looking for punishment.  Crime and punishment usually go together in the Justice Department and law enforcement communities.

“You do the Crime – You do the Time”.

So one person is arrested for a victimless crime, like shoplifting a candy bar, but a big company, like Countrywide, or Bank of America, can crash a worldwide economy, lie on federal forms, commit perjury and saw intense financial destruction to millions of people, and they are allowed to keep the fortunes they made through this risky behavior, and, even better, there’s no jail time, no fines commensurate with crime, and no penalty for openly flaunting federal laws!!

WOW – what kind of message does this send?

For me, concerned day after day with helping organizations comply with federal mandates and laws, like SOX, and HIPAA, and OSHA, this makes a parody of compliance enforcement.

Companies spend millions of dollars to comply with these regulations, which are passed to protect the American public from exactly what just happened.  To find that the regulators are the ones who ignored the falsified attestations, forgave the lack of compliance and let these 21st century robber barons keep their ill-gotten gains makes me, and about 200 million other people, sick!

 




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