December 2002
Dear Survivor of Weapons of Mass Destruction:
I know! I know! You would prefer I not engage in administration bashing in this year end tome. After all, with the economy in the tank, Osama on the loose and Dixiecrats running for cover, they have their hands full. Tempting as it may be, I will pass on highlighting the ineptitude of those willing to sacrifice all for cheap oil.
No, the weapons of mass destruction to which I refer are the paper shredders employed by those crafty accountants to help “balance the books” at a number of previously high flying U.S. corporations. Let’s face it: we should have suspected something was wrong when those CEOs were taking home bonuses equal to the GNP of some third world countries.
The amount of wealth eliminated the last two years has been breath-taking. Of course, we know where $363 million of it went. Still, Jack Whittaker is wondering how $363 million can become $113 million after taxes and the small print. He need not feel alone; Martha is also wondering how one can lose so much money so quickly. So much for putting in a stop loss.
Investors are no doubt suffering from a case of vertigo. After the CNBCs of the world helped pump up stocks, they have decided the sky is falling and there is no bottom. At times like this it is comforting to seek wisdom in the words of Bernard Baruch. When the legendary investor was asked in 1930 if the stock market decline will ever end, his simple response was: “It always has.”
We end this year anticipating significant tax changes in the upcoming year. In case you had not noticed, the two party system has taken a break. While we have no inside track on where the legislation will take us, it is safe to assume it will not be higher taxes for the rich or lower taxes for the poor.
We hope you have enjoyed the holidays. May the coming year find you and your loved ones grateful for all the blessings we are fortunate enough to take for granted.
Best regards,
Timothy F. Terry
TFT/lsn