Political Prestidigitation: the Skillful Art of Clever Tricks

The current major Party candidates have been running for President since early 2007. Senator Obama announced his candidacy February 11th, and Senator McCain followed suit April 25th. Now, only six days remain until D-Day; Election ’08. As the historic day approaches, and it will be historic, no matter which candidate wins, beware the outrageous schemes of deception, misdirection, mind games, and the plain old okeydoke.

It could be said of political campaigns, they are a lot like love and war; all is fair. Partisan politics in America is littered with its share of inter-party intrigue, squabbling, bickering, and contests between men and women promoting competing ideas and ideals, big and small. The overarching strategies and subtly nuanced tactics of this year’s race for the American Presidency have all pretty much been implemented, and now await the verdict, which will be rendered by We the People next Tuesday, November 4ht.

Oh yes, to be sure, there is still a flurry of activity between now and then. The candidates and their seconds, the would-be Vice Presidents, are crisscrossing the Country, to make their final pitches in a few of the so-called, battleground States. On Monday, Obama led in Ohio, North Carolina, Virginia, Missouri, and Nevada, while McCain boasted significant margins in West Virginia and Indiana. Florida, the largest prize among the battleground States, was a dead heat.

A review of most polls shows that Obama is comfortably ahead in all the States won by John Kerry in 2004. Conversely, several polls show McCain in serious danger in several States won by President Bush. Three examples of this latter point are North Carolina, Virginia, and Ohio. No Democratic Presidential candidate has won North Carolina since Jimmy Carter in 1976, none has won Virginia since Lyndon Johnson in 1964, alternately no Republican has ever gone on to win the Presidency without carrying Ohio.

As the clock inexorably moves toward zero, polls show Senator Obama with a slight advantage in popular votes, and a tenuous lead in several battleground States, as well as Electoral Votes. This is where things have had a tendency to get tricky in recent history. As the 2000 and 2004 Presidential Campaign neared an end, the Democrats found themselves ahead in the polls. Of course, after eight years of W, we all know how both of those elections turned out.

Senator McCain has cast himself, along with Governor Palin as the underdog team; but he added they are exactly where they want to be. While this is highly doubtful, they clearly have not thrown in the towel. Instead, they are trying to work a little Prestidigitation; magic, if you will. He has insisted that the Obama camp and the media have written them off, and underscores he still believes they can win.

The Obama-Biden duo has apparently considered the less than stellar ending their Party experienced in the past two Elections, and taken Senator McCain-Governor Palin at their word. As a result Obama has responded by asking supporters to approach the next six days as if the result of the campaign depended on it, because, he says, “it does!”

This is where voters and supporters enter the picture. Trailing as they are, Team GOP needs help from Democrats and Independents to pull even and overtake Obama-Biden. They are enlisting the aid of an array of distractions to sew seeds of fear, create confusion, and promote complacency among Democrats and Independents planning to vote for Obama and Biden. A sample of ten artful impediments voters will encounter includes:

Obama is a Muslim
Obama promised to accept matching funds
Obama is a Socialist/Redistributor
Obama has written Inaugural Speech; measured White House drapes
Obama will appoint Jeremiah Wright to a Cabinet position
Obama will rely on William Ayers for policy advice
Obama has a flawed position on the economy
Obama has a flawed position on Iraq
Obama has a flawed position on health care
Obama has a flawed position on abortion

The point in introducing any or all of the above items has two principal purposes. The first is to erode the candidate’s time and availability to deal with legitimate Campaign issues and apply quality time to disseminating his own message. The second and more cancerous purpose, at this stage of the process, is to waylay and otherwise dissuade voters.

Take for example the question of whether Obama is a Muslim. This has been addressed countless times since the beginning of the race. It is such a non-starter, McCain or Palin would never make the claim. Yet the insidious way it seeps into the fabric of the Campaign occurs when it comes up during official Campaign events, without challenge or interruption from the candidates or their surrogates. An on-the-fence voter may hear it repeated enough times he/she accepts it as fact.

Next, consider the matching funds question. Obama changed his position on the matter. But let’s face the facts. Republicans have typically had an advantage in fundraising, and funds on hand. If The GOP had more money than the Democrats, as they usually do, this would not be an issue, as least not with the GOP. The only reason it is an issue now is because Senator Obama took an experimental mechanism and turned into the goose that laid the Golden Egg of fundraising. In fact, he was so successful, it is certain the rules will be changed before there is another Presidential Election.
In a stroke of marketing genius, the McCain supporter otherwise know as Joe the Plumber helped the Campaign stumble onto its most robust theme of the entire contest; Obama the Socialist/Redistributor. There is really only one problem with that. The United States has long embraced concepts that are rooted in socialist principles. Public education, income tax, labor unions, the recent Rescue Package, Medicare, Medicaid, and the Minimum Wage, just to name a few. As an interesting aside, Francis Bellamy, a Baptist Minister, wrote the original Pledge of Allegiance in 1892. The Reverend Bellamy was a socialist. In the 80's Gore Vidal said of Reaganomics: “The US government prefers that public money go not to the people but to big business. The result is a unique society in which we have free enterprise for the poor and socialism for the rich.” Oh my!

The McCain-Palin tandem has spent a good portion of the week repeating a claim that Obama has already written his Inauguration Speech, and had the White House measured for drapes. Obama’s spokesperson has denied both. This has the feel of an earlier gambit to label Obama as an arrogant elitist. If at first you don’t succeed, try, try again, I suppose.

The Reverend Jeremiah Wright and William Ayers are the bookend symbols of guilt by association. Obama’s relationships with both appeared to receive more thorough vetting by opponents and the media than Governor Palin did by Senator McCain and his surrogates before she was selected as a person who could become our next Vice President. Think about that for moment, why don’t you. I have said in a previous post that in the final analysis, Palin may prove to be one of the most significant boosts to Obama’s Presidential quest.

Looking at the economy, Iraq, health care, and abortion as a group of policy issues, the most concise way to frame it is to note for all claims to the contrary, Barack Obama has given every indication that his position on the issues that matter most to Americans will be centrist and conciliatory. That’s why Americans across the spectrum felt he won all three debates with Senator McCain. His views, his values, and his ability to communicate them align more closely with the views of most Americans that do those of John McCain.

So, upon sober reflection, whether it’s called prestidigitation, legerdemain, deceit, deception, tricks, mind games, or simply the okeydoke, do not fall for it. Stay the course; cast your vote, do it early if you can, and spend some time ensuring that others do the same. This momentous undertaking is not over, but this time next week, it will be. Hang in there. I’m done; holla back!

Read my blog anytime by clicking the link: http://thesphinxofcharlotte.blogspot.com. A new post is published each Wednesday.


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Passing the Torch

This past Sunday morning, Tom Brokaw, of NBC’s Meet the Press conducted an Interview with General Colin Powell, a man Senator John McCain would undoubtedly refer to as (an eloquent) friend. By Sunday, a fair amount of buzz had formed around Powell’s appearance. It was gleaned that in all likelihood, the General would endorse Democratic Presidential candidate, Barack Obama.

Powell enters the arena as an accomplished and widely respected statesman. His credentials are hailed widely as impeccable. Of course most people know he took one for Team America, and acted, in his capacity as Secretary of State, as the front man and mouth piece of the Bush Administration, as it made its case for initiating and waging the War in Iraq. It was Powell who enunciated the case that Americans, and indeed the world, were threatened by Weapons of Mass Destruction (WMD’s). On balance, it must also be noted that most people know he was the lone voice in the President’s Inner Circle who opposed the war.

But not so fast; how did Powell arrive at this pivotal point in the history of our nation? Well, let’s review a brief summary of his climb:

· 35 Years U.S. Army
· 4-Star General
· 16th National Security Advisor (President Reagan)
· Commander In Chief of the U.S. Army’s Forces Command
· 12th Chairman Joint Chiefs of Staff (Presidents G. H. W. Bush/Bill Clinton)
· 65th Secretary of State (President G. W. Bush)
· Served in Vietnam
· Oversaw the Invasion of Panama
· Oversaw the Gulf War
· Earned the Legion of Merit
· Earned the Bronze Star
· Earned the Purple Heart

Throughout the course of General Powell’s military service, his political affiliation was muted. He had gained favor with both major Parties during a series of increasingly responsible assignments, and successful engagements. Democrats admired his moderate stance on military matters, while Republicans associated him with many of the successes of Republican Administrations.

After declaring himself a Republican, Powell campaigned for a number of Republican candidates. At one point in 1996, he was thought to be a potential adversary for Bill Clinton in the 1996 Presidential race. One 1996 Election Day exit poll cited Powell defeating Clinton 50-38 in a hypothetical match-up. Rumors surfaced at the time that Powell’s wife Alma, was concerned about his safety, and forbade him to run.

After taking himself out of the political equivalent of the direct line of fire, Powell campaigned for a number of Republicans, including John McCain, and eventually George W. Bush in the 2000 Presidential Election. That brings us full circle, as W made Powell his Secretary of State. The rest, as they say, is history. Disillusioned over the Administration’s insistence on staying the course on Iraq, and infuriated upon discovering the subterfuge relating to the unfounded assertions about WMD’s, Powell testified that the major sources providing information about the weapons stockpile were wrong. He was immediately asked to resign, and did so on November 15, 2004.

Since Powell never served as, or even ran for President, it is fair to ask, how is he Passing the Proverbial Torch? The fact is Powell constructed and executed a career path so flawlessly, the Republican hierarchy felt, more than a decade ago, he would make a worthy candidate for the nation’s highest office. At that time, his reputation and credibility were such that he was widely viewed as a viable candidate.

But 1996 was a different time in America. Moreover, Powell had sided with the GOP. If one takes any cues from the current race for President, it is difficult to fathom the Party of McCain and Palin, of Hannity and Colmes, of Limbaugh and the like, coalescing and providing vigorous support for Colin Powell. Actually the reality is, Alma likely made the right call.

But here we are in 2008, and the General has the opportunity to add credence to the candidacy of someone who not only may be better positioned in (American) history, but who has shown in may ways that he has mastered the qualities necessary to successfully lead our nation. As Virginia Governor Tim Kaine put it last Sunday morning after Powell’s announcement, "General Powell is seen as someone who is pragmatic, not as an ideologue, as a unifier, not a divider, and also as someone with a firm grip on and appreciation for issues of National Security." His endorsement is significant.

As for the General, he said even though he and Senator McCain were friends, and that he had labored over the decision, he believed McCain has been running a polarizing campaign, showed questionable judgment in selecting Governor Palin as his running mate, was erratic in his approach to dealing with the nation’s financial crisis, and acted inappropriately in spending so much time, energy, and focus on Bill Ayers.

He concluded, after months of review and analysis, that Senator Obama brings intellectual rigor to problem-solving, has been thoughtful and steady in responding to the financial crisis, will bring the forces of a new generation to solving the problems we face as a nation, and is a transformational figure.

There are many opinions on the importance of General Powell’s endorsement. Some say endorsements in general are overrated, others suggest this endorsement in particular was a racial thing, while a few insist Powell was attempting to punish the GOP because of the acrimonious split he had with the Party. Senator McCain publicly expressed disappointment that his friend endorsed Senator Obama. It has been reported that privately he is furious about the endorsement, and the fact that the General did not tell his directly, before hand. By and large, Republicans hated it; Democrats loved it. Senator Obama accepted it, graciously, and enthusiastically.

In fact though, Senator Obama has garnered many endorsements, from a wide variety of sources: (http://en.wikipedia.org/wiki/Obama_endorsements), including individuals, groups, and media outlets. For example, two notable newspaper endorsements include the Chicago Tribune, and the Los Angeles Times. The Tribune is one of Senator Obama’s hometown papers, but they have never endorsed a Democrat for President before. The Times has not endorsed a candidate for President since Richard Nixon in 1972. They have also never endorsed a Democrat.

As the 2008 Presidential Campaign winds down, there are13 days left, General Powell’s endorsement was important, but not critical for Obama. It was a good get; however, that Powell did not endorse McCain, as he did in 2000, probably was a bigger deal for the Senator from Arizona. In the end, as General Powell Passed the Torch, he handed off to Barack Obama a thoughtful and dignified legacy, a tradition of servant leadership that advanced his personal aspirations and ambitions, but more importantly one that imbued our nation with an effective leadership that it desperately need through a variety of crises, including Desert Storm, and 9-11. At ease, General. I’m done; holla back!

Read my blog anytime by clicking the link: http://thesphinxofcharlotte.blogspot.com. A new post is published each Wednesday.


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Economic Roulette

Long, long ago, in a place no so far away, a certain mantra emerged. “It’s the economy stupid,” was the hue and cry; it was heard far and wide. Sixteen years after James Carville coined that phrase during what would become then candidate Bill Clinton's successful presidential bid, we have come full circle. Well sort of, anyway. The United States has fallen precipitously into a financial abyss that many analysts compare to the Great Depression.

That this financial turmoil is interwoven with the daily drama and intrigue of presidential politics, and a National Election, as was the case in ’92, may be as far as the comparison goes. Most observers believe we have not faced similar challenges as we do in this crisis, in many generations.

As we watch experts from Washington and New York, from Wall Street and Main Street, from all across America, and from all over the World, it almost seems as though in our efforts to tackle this vexing problem, we are caught up in a high stakes game of Economic Roulette. The dominant colors on a Roulette Wheel are red and black; likewise the dominant colors in General Accounting Principles are, you guessed it, red and black. This is not a primer in Roulette or Accounting. All you need to know for the purpose of this discussion is that, unlike Roulette, to win at Finance/Accounting, you have to land in the black.

Over the course of the past several weeks, we have seen financiers, brokers, politicians, and bureaucrats of all stripes take their shot at spinning the wheel. Each move is akin to betting that a particular strategy or tactic is the move that will result in our landing back in the black, or at least moving in that direction. Most of us have trained a myopic lens on the problem. With the fate of our IRA’s, 401k’s, education funds, and retirement plans riding on each next big decision, it is easy to develop a micro focus.

Unfortunately, this perspective is much too limited in its scope. That’s because 21st Century Capital and Liquidity Markets are global; it is essential to develop and maintain a macro outlook. Recent developments have created instability in European and Asian markets as well as our own.

One of the characteristics of an age when information is both instantly available, and constantly proliferating, is that there is an expert on every corner, or at least on every TV station, radio network, and of course all over the Internet. This cadre of wall-to-wall advisers is anything but coordinated and integrated. Some argue, get liquid; take your holdings out of the stock market, and do it now. Others adhere to conventional wisdom, and admonish now is not the time to divest. In fact, gurus who hold this mindset, in sync with the divine code of Market Magic, buy low, sell high, tend to suggest now is a great time to buy, or expand your position and portfolio by adding well-researched stocks. I think you can see why I call it Economic Roulette.

There are more twists and turns than anyone can track effectively. Americans watched with interest, angst, pique, and frustration as an unpopular and lame duck President, his chief economic advisers, a low-approval rated Congress, and two sparring Presidential candidates labored to devise a winning game plan. The first effort, a trillion dollar, OK, $700 million Plan, was roundly panned, and soundly defeated when Republican House Members voted against it by a more than 2-1 margin, 133 against, 65 for.

Eventually, the revised Senate Bill passed both Houses of Congress. Interestingly, the fiscally conservative GOP, which torpedoed the original House Bill, voted to approve the Senate Bill, which by all accounts was significantly more pork laden. Go figure; it’s Economic Roulette, baby!

This week, after the greatest single increase in the history of the Dow, 936 points, and the expected raid on capital, the Index retreated. Fits and starts; get used to it. Virtually all experts say the recovery will be a slow process. The good news is most of those experts think we will recover, and history suggests that is true. But that likelihood notwithstanding, there are victims.

At any given time, a cohort of people is planning to transition into hard-earned, well-deserved retirement. Many who thought they were approaching that momentous milestone will have to recalculate, reconsider, and re-plot that course. Many parents who believed they had secured the funds necessary to send their children to college are looking a new reality squarely in the eyes. Many retirees who left the workplace figuring they had enough money from their investments to see them through their retirement years comfortably must revisit that conclusion. And of course, do not forget the catalyst for these melting money markets, bad Real Estate loans.

These and other victims remind us, yet again, of the unpredictable nature of games of chance. Roulette is defined thusly:

“a game of chance played at a table marked off with numbers from 1 to 36, one or two zeros, and several other sections affording the players a variety of betting opportunities, and having in the center a revolving, dishlike device (roulette wheel) into which a small ball is spun to come to rest finally in one of the 37 or 38 compartments, indicating the winning number and its characteristics, as odd or even, red or black, and between 1 and 18 or 19 and 36.” Copyright © 2008, Dictionary.com, LLC.

As we watch President Bush, Secretary Paulson, Chairman Bernanke, Speaker Pelosi, Senate Majority Leader Reid, Congress, and Federal Regulators grapple with the issue and gamble with your financial future, while Presidential candidates McCain and Obama shadow box around the matter, it is easy enough to understand that, despite boisterous protests to the contrary there are a lot of bitter and frustrated Americans…in the Heartland, and elsewhere...and with good reason. Economic Roulette can do that to you. I’m done; holla back!

Read my blog anytime by clicking the link: http://thesphinxofcharlotte.blogspot.com. A new post is published each Wednesday.


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The Belmont "Stakes"

The clock is ticking; the elusive event that seems to have taken an eternity is but 27 days away. Four weeks from today, those who actually sleep Tuesday night will in all probability awaken to newspaper headlines, and other media reports announcing to the world, the 44th President of the United States. Over the past week and a half there have been 2 debates between the major party candidates for President, and 1 between Vice Presidential candidates. One Presidential debate remains, a week from tonight, in New York, at Hofstra University.

Interestingly, the three debates that have taken place so far have been pitched as playing to the Republican candidate’s strength (Foreign Policy as the topic, or using a Town Hall format), and/or being a debate the Republican candidate had to win due to their trailing in the polls (all three). Just as interestingly, snap polls taken of potential voters who actually watched the debates found a majority of viewers thought the Democrats won…all three debates. It is fair to say, with the Election looming, there is tremendous pressure on Senator McCain to perform well next week.

But let’s not put the cart before the horse. Below is a list of the debates, their dates, times, and locations:

September 26, 2008: Video: Obama/McCain debate from the University of Mississippi, Oxford, MS
October 2, 2008: Video: Palin / Biden Vice Presidential debate, Washington University, St. Louis, MO
October 7, 2008: Presidential debate in a town hall format, Belmont University, Nashville, TN
October 15, 2008: (Tickets) Presidential debate with domestic policy focus, Hofstra University, Hempstead, NY
Each debate starts at 9:00 PM Eastern time!

Last night, Senators Obama and McCain met at Belmont University in Nashville, Tennessee where they discussed their views on the economy, domestic policy, and foreign affairs. After last Thursday night’s outing by Governor Palin, deemed successful by those who said she exceeded expectations (84% of those who watched), the Republicans rallied with buoyed spirits. Senator McCain and Governor Palin went on the offensive, attacking Obama for his past associations with Bill Ayers, The Reverend Jeremiah Wright, and Tony Rezco. Senator Obama countered by citing McCain’s long-standing support for George W. Bush and his policies.

There was actually some speculation fireworks could erupt at last night’s debate, should either or both candidates bring the tone of their recent campaign ads and stump speeches into the evening’s contest. Alas, it appeared advisers succeeded in de-clawing the combatants prior to the start of the debate. The combination of losing most of the ad fodder, ostensibly to avoid having either candidate come off as too shrill in the most public of debate formats, tamped down the rancor between two men most analysts agree genuinely dislike on another.

Still there were numerous points on which the candidates differed sharply, and a couple of points that stood out during the proceedings. One was an exchange in which Senator McCain, rather than call Senator Obama by name, referred to him as simply “that one,” when distinguishing the way the two men had voted on an issue. Before that, the senior Senator from Arizona, in responding to an audience member’s question made a reference to Fannie Mae, and Freddie Mac, and then went on to say the questioner probably never heard of them. The best that could be said in either instance was the exchanges were disrespectful and dismissive. But that’s just my opinion!

There will be an enormous amount of results-spinning in the hours and days after last night’s debate. Polling in any context is an inexact art. Nevertheless, we are drawn to polls, particularly in political contests. A few of the numbers from a couple of the polls follow. CNN’s snap poll following the debate showed Obama winning by 51% to 38%, a 13-point spread. A similar CBS poll of uncommitted voters showed 46% thought Obama prevailed, while 32% thought McCain did. Moreover, 66% in the CBS poll thought Obama would make the right decisions about the economy better, while 42 thought McCain would. On foreign policy, McCain did hold sway, with 56% saying they thought McCain would make the right decisions about Iraq, and 48% saying they thought Obama would.

Like many of you, I have a close-knit circle of friends with whom I regularly discuss many of the issues related to the pending Election, especially for President. Although we disagree on many things, we have reached Détente on one central matter. We all agree the poll that matters is the one that will be taken November 4th. That will produce incontrovertible evidence about what voters think; at least we hope it will. Until then, relax, and get ready for the domestic policy debate at Hofstra University a week from today. Oh yeah, expect the campaigns to get more and more personal.

Finally, in news that was not mentioned at the debate last night, Senator Joseph Biden’s Mother-in-law, Bonnie Jean Jacobs, died Sunday. Senator Biden took a couple of days off to be with his wife Jill, and his family. The funeral was yesterday, and Biden is expected to return to campaigning today.

The Election and the politics surrounding it are important. Families, yours, mine, and those of the candidates are more important. Say a prayer for the Senator, his wife, and their family. That’s it; I’m done. Holla back!

Read my blog anytime by clicking the link: http://thesphinxofcharlotte.blogspot.com. A new post is published each Wednesday.


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http://www.latimes.com/news/politics/la-na-assess8-2008oct08,0,6881351.story


http://www.suntimes.com/news/politics/mccain/1208091,debate100708.article

http://www.usatoday.com/news/politics/election2008/2008-10-07-debate-tuesday_N.htm

Sold: The Rise and Fall of a New South Institution

Less than 5 days ago, I joined millions of Americans watching two combatants in a tilt “Newsweek” referred to as Mr. COOL vs. Mr. HOT; a pairing in which not even first names were necessary. At that moment, I was confident my choice of blog topics for the coming week was preordained. What, with the Vice Presidential Debate scheduled for tomorrow night, Obama-McCain simply had to be “the joint.”

It was quite simple; Senator McCain had suspended (wink-wink) his Campaign activity to return to Washington to save what some detractors derisively termed the Big Bailout Boondoggle, while supporters artfully described it as a Rescue Plan. The Senator from Arizona had deftly maneuvered the script to force Senator Obama’s hand in joining the fun, and surely would persuade his Republican colleagues in the House of Representatives to support the proposal President Bush wanted so badly. Never mind, this was yet another instance of his joining at the hip with a President he declined to even invite to the Republican National Convention, and whom he frequently disavows. How many times did he mention Ronald Reagan during the Debate?

Well, not so fast. A strange thing happened en route to Happily Ever After. The House Republicans voted overwhelmingly, more than 2-1 (133-65) against the measure. The stunning defeat precipitated a 777.68 point drop in the Dow Jones Industrial Average, the largest one-day point drop in the 112 year history of the Index. That the Republican President, and the Republican Presidential Nominee, acting in a manner designed to serve as a Rescue Plan for both their poll numbers could not pull it the Bill’s approval was eye-catching news on its own. The record-breaking Dow dip was obviously a twin headliner.

But the weekend heralded an ominous precursor for Charlotte area residents and their financial interests. Saturday’s edition of the Charlotte Observer announced the likely buyout of the Wachovia Corporation, by either Citigroup (New York), or Wells Fargo (San Francisco). By Monday morning, the decision was in, Sold, to Citigroup.

In a subsequent article yesterday, The Charlotte Observer noted “Charlotte-based Wachovia, an N.C. banking stalwart that survived the Great Depression, 1970s economic woes, and a consolidation wave that stripped many cities of their hometown banks, on Monday succumbed to a ravenous credit crunch that is upending the banking world order.”

True enough, just two weeks earlier, Wachovia’s long-standing neighborhood behemoth competitor, Bank of America, bought National titan Merrill Lynch in a similar fire sale. Just 4 days earlier, The Office of Thrift Supervisors seized Washington Mutual Savings Bank (WaMu), and placed it into receivership of the Federal Deposit Insurance Corporation (FDIC), which in turn sold the banking assets to J.P. Morgan Chase. WaMu retained its debt, and filed for Chapter 11 bankruptcy. In doing so, WaMu, which had been the 6th largest bank in the United States, took on the distinction of becoming the largest bank failure in American financial history.

Wachovia, while also going down in flames, at least technically avoided the designation failed bank. Of course its shareholders might beg to differ. At the zenith of its fiscal solvency, Wachovia shares traded for just south of $60 per share. Monday’s $2.1 billion dollar purchase by Citigroup amounted to roughly $1 per share.

But, while Wachovia will sell its Retail Bank, its Corporate and Investment Bank, and it’s Wealth Management Business to Citigroup, it will retain the name Wachovia, and two business operations, the A.G. Edwards Brokerage, and Evergreen Asset Management, which includes Evergreen mutual funds. While it may seem a small feat, all things considered, Wachovia and Charlotte were spared the indignity of a bankruptcy filing, the Board of Directors survives, and the community’s leadership will at least get to make a pitch to Citigroup encouraging a continued Charlotte presence.

The residual fallout will undoubtedly entail a loss of jobs, perhaps thousands of jobs. Wachovia maintained approximately 20,000 employees in Charlotte, and 122,000 employees total. One local economist estimated that the typical displacement for companies bought out like Wachovia is 20%. That would translate into up to 4,000 jobs loss.

The demise of Wachovia was swift. In another era, one might ask how could this happen? But we are here…and now. In the past 3 weeks, we have seen Fannie Mae, Freddie Mac, Lehman Brothers, Merrill Lynch, AIG, and Washington Mutual all go down in various forms of inglorious restructuring, or dissolution. All have fallen prey to the same set of economic forces; an overzealous and under regulated market place. Add Wachovia to the list. Drowning in a sea of toxic debt, Regulators made the final call Sunday evening, and by late Monday morning, news of the sale was filtering its way through the streets of Charlotte.

Wachovia, as we knew it, established in 1879, merged with former competitor, First Union National Bank, in 2001, 47th on the Fortune 500 List in 2007, 4th largest bank holding company in the United States in 2007, and donor of, the maximum allowable, $250,000 to the 2nd Inauguration of George W. Bush in 2005, was no more. Just like that, “Sold: The Rise and Fall of a New South Institution.” I’m done; holla back!

Read my blog anytime by clicking the link: http://thesphinxofcharlotte.blogspot.com. A new post is published each Wednesday.


http://en.wikipedia.org/wiki/Wachovia

http://www.wcnc.com/video/index.html?nvid=287727 (Will bank sale affect city's image?)

http://triad.bizjournals.com/triad/stories/2008/09/29/daily18.html?ana=yfcpc

http://www.charlotteobserver.com/banking/story/222685.html

http://www.charlotteobserver.com/banking/story/222482.html

http://www.charlotteobserver.com/business/story/223360.html

http://www.charlotteobserver.com/banking/story/222346.html

http://www.usnews.com/blogs/new-money/2008/9/29/wachovia-buyout-what-it-means-for-customers-and-investors.html

http://www.cnbc.com/id/26962798/for/cnbc/

http://www.cbsnews.com/stories/2008/09/29/ap/business/main4484853.shtml?source=search_story

http://abcnews.go.com/Business/wireStory?id=5917345

http://www.washingtonpost.com/wp-dyn/content/article/2008/09/29/AR2008092900760.html

http://www.nytimes.com/2008/09/30/business/30bank.html?_r=1&scp=2&sq=wachovia&st=cse&oref=slogin

http://www.fdic.gov/news/news/press/2008/pr08088.html

http://hamptonroads.com/2008/09/qa-what-does-wachovia-buyout-mean-you