Wynn CEO Goes On Epic Anti-Obama Rant On Company Conference Call

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This is what I have thought all along and now we have a major business owner saying it out loud. Businesses are afraid to try to expand in this political climate. Jobs are not being created directly because of this administration’s anti-business policies.

I think the Myans were predicting an Obama win in 2012!😃

Who doesn’t love a good rant?

We certainly do, and as usual, Steve Wynn, the CEO of casino company Wynn Resorts, delivered on his company’s quarterly conference call today.
Via Seeking Alpha, here’s the crux of it:

I believe in Las Vegas. I think its best days are ahead of it. But I’m afraid to do anything in the current political environment in the United States. You watch television and see what’s going on on this debt ceiling issue. And what I consider to be a total lack of leadership from the President and nothing’s going to get fixed until the President himself steps up and wrangles both parties in Congress. But everybody is so political, so focused on holding their job for the next year that the discussion in Washington is nauseating.

Read more: businessinsider.com/wynn-ceo-steve-wynn-conference-call-transcript-obama-2011-7#ixzz1SY6cvK5H
 
Epic? That’s mild compared to what one hears around the coffee machine at my job.
 
From the link:
And I’m saying it bluntly, that this administration is the greatest wet blanket to business, and progress and job creation in my lifetime. And I can prove it and I could spend the next 3 hours giving you examples of all of us in this market place that are frightened to death about all the new regulations, our healthcare costs escalate, regulations coming from left and right. A President that seems, that keeps using that word redistribution. Well, my customers and the companies that provide the vitality for the hospitality and restaurant industry, in the United States of America, they are frightened of this administration.And it makes you slow down and not invest your money. Everybody complains about how much money is on the side in America.
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You bet and until we change the tempo and the conversation from Washington, it’s not going to change. And those of us who have business opportunities and the capital to do it are going to sit in fear of the President. And a lot of people don’t want to say that. They’ll say, God, don’t be attacking Obama. Well, this is Obama’s deal and it’s Obama that’s responsible for this fear in America.
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The guy keeps making speeches about redistribution and maybe we ought to do something to businesses that don’t invest, their holding too much money. We haven’t heard that kind of talk except from pure socialists. Everybody’s afraid of the government and there’s no need soft peddling it, it’s the truth. It is the truth. And that’s true of Democratic businessman and Republican businessman, and I am a Democratic businessman and I support Harry Reid. I support Democrats and Republicans. And I’m telling you that the business community in this company is frightened to death of the weird political philosophy of the President of the United States. And until he’s gone, everybody’s going to be sitting on their thumbs.
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Yep, this is the case. And the Republicans have been too wimpy to come right oit and state that clearly, maybe even counter the Democrat talkpoints by holding hearings with–gasp!!!-- business owners and managers to see why they are not hiring and investing.

No wonder this country is in the state it’s in: Democrats deny reality and Republocans don’t come out and state reality.
 
It’s not just big business. I work directly for the owner of my company and my boss has almost EXACTLY the same attitude: This president is a berserker and I’m not going to increase my exposure (i.e. risk my capital by investing in business expansion) until I have some sense of what my actual risks are. Since 2008, we’ve shut down a struggling satellite office and work more hours with the people we do have. That’s 80% due to the economy itself, but don’t think the other 20% Obama fear isn’t a factor as well.
 
The Republicans seem tongue-tied. They should send Marco Rubio out as spokesman. He tells it like it is.
 
Steve Wynn was part of a group that was busted for illegal gambling online. Yeah, let’s take advice from him.

Let’s see. American businesses are sitting on trillions of dollars in profits. CEOs pay is not only astronomic*al but increase and an mind numbing rate as well. We gave Wall Street and the bankers billions of dollars. We bailed out the auto industry. Tax cuts for the rich have been the solution for pretty much every problem and we now have the lowest tax rates since 1950. Aside form giving them my wife, daughter and home am not sure what else I have to make things a bit better for those poor unhappy rich people.

“Nonfinancial companies in the U.S. were sitting on $1.93 trillion in cash and other liquid assets at the end of September 2010, up from $1.8 trillion at the end of June 2010, the Federal Reserve said. Cash accounted for 7.4% of the companies’ total assets—the largest share since 1959.” WSJ

Trillions in cash…an*d not hiring.
 
orion7747 said:
“Nonfinancial companies in the U.S. were sitting on $1.93 trillion in cash and other liquid assets at the end of September 2010, up from $1.8 trillion at the end of June 2010, the Federal Reserve said. Cash accounted for 7.4% of the companies’ total assets—the largest share since 1959.” WSJ

Trillions in cash…an*d not hiring.
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Some people have personal problems with CEOs and rich folks. But the amount of money companies are hanging on to is no reason to hire. It means they don’t have a good reason to invest or perhaps they fear some huge expense to crash down on them in the future.
A business will add personnel to a payroll to get something done that currently is not getting done. Make a widget, or file a paper, or type an invoice, or drive a truck, or make a call all the activities said employee is expected to do because the business has determined getting these things done will increase the cash flow through the business and the positive cash flow is profit. You see the operation needs to be experiencing a shortfall in work being done and the value of that work must exceed the cost of hiring the employee, otherwise you are a certifiable idiot.
So, if you as business guy expect the cost to get these things done will exceed the value of their getting done, you aint going to hire. So, the right question to ask is why the cost of employment is going up. Can you say ridiculous government regulations….EPA….OSHA…Obamacare?
Eventually if the money isn’t invested it will have to be returned to the stock holders by the company buying back stock paying out larger dividends. The company owners are not going to allow the money to sit idle for too long. So don’t stay up night worrying about all this money just sitting around in company vaults not doing anything.
 
It’s so easy to spot posters who have never been in the entrepeneurial side of business, but have merely collected a paycheck from those who HAVE their whole lives. Businessmen cannot make investment decisions based on how profitable they were last year or how much cash reserves they have. THE basis for making investment (i.e. hiring and expansion) decisions is the likelihood of being able to make a profit on it in the FUTURE. Whenever there is uncertainty about the future, such men MUST be fairly pessimistic about what could happen. Other sorts of people are quickly weeded out of the business world by bankruptcy.

This is why Obama pontificating is so damaging. Business leaders hear what he wants, do some quick (sometimes gut level) checking about what it will mean to their business and factor that into their decisions. Business hates uncertainty. They’d prefer a known bad outcome to not knowing.
 
orion7747 said:
Steve Wynn was part of a group that was busted for illegal gambling online. Yeah, let’s take advice from him.
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Also, an ad hominem argument is even weaker when the link to the person’s character is basically non-existent. You are trying to tie him to something he had nothing to do with.
 
manualman said:
It’s so easy to spot posters who have never been in the entrepeneurial side of business, but have merely collected a paycheck from those who HAVE their whole lives. Businessmen cannot make investment decisions based on how profitable they were last year or how much cash reserves they have. THE basis for making investment (i.e. hiring and expansion) decisions is the likelihood of being able to make a profit on it in the FUTURE. Whenever there is uncertainty about the future, such men MUST be fairly pessimistic about what could happen. Other sorts of people are quickly weeded out of the business world by bankruptcy.

This is why Obama pontificating is so damaging. Business leaders hear what he wants, do some quick (sometimes gut level) checking about what it will mean to their business and factor that into their decisions. Business hates uncertainty. They’d prefer a known bad outcome to not knowing.
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its amazing to me that people don’t understand that basic concept you just explained. Business take a gamble on planning for the future. They use their past to balance their expectations of that future. If they over extend they have the possibility of losing it all.

Right now is a critical time as lots of comings are planning the budgets for the new fiscal year especially if they have their year starting Oct 1.

Listen, I work in the construction business. We have been hearing for the last 3 years how good the expectations are that our business sector was going to turn around yet it hasn’t. Luckly all of our head guys went through the housing crashes in the 80’s and know that what we need to do to survive so that we can be redy for when we do come out of this crash but to defintely not believe what people are projecting. We need to see the actually increase to be able hiring new employees otherwise everyone just buckle downs a little more and takes on a little more responsibility to get the job done.
 
manualman said:
It’s so easy to spot posters who have never been in the entrepeneurial side of business, but have merely collected a paycheck from those who HAVE their whole lives.
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Well give them some credit. When things get tough for them they just raise taxes!
 
manualman said:
It’s so easy to spot posters who have never been in the entrepeneurial side of business, but have merely collected a paycheck from those who HAVE their whole lives. Businessmen cannot make investment decisions based on how profitable they were last year or how much cash reserves they have.
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I see one wild assumption already…
 
manualman said:
It’s so easy to spot posters who have never been in the entrepeneurial side of business, but have merely collected a paycheck from those who HAVE their whole lives. Businessmen cannot make investment decisions based on how profitable they were last year or how much cash reserves they have. THE basis for making investment (i.e. hiring and expansion) decisions is the likelihood of being able to make a profit on it in the FUTURE. Whenever there is uncertainty about the future, such men MUST be fairly pessimistic about what could happen. Other sorts of people are quickly weeded out of the business world by bankruptcy.

This is why Obama pontificating is so damaging. Business leaders hear what he wants, do some quick (sometimes gut level) checking about what it will mean to their business and factor that into their decisions. Business hates uncertainty. They’d prefer a known bad outcome to not knowing.
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Steve Wynn is getting a big audience because his company is doing so well. He is earning record profits for his stockholders by investing heavily to serve his cutomers well. That investment has created lots of jobs where he has invested, in CHINA. At least that government admits to being communist and is easier for him to deal with than the Obama administration.
 
Trader said:
At least that government admits to being communist and is easier for him to deal with than the Obama administration.
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Imagine that, a communist dictatorship being easier to deal with than the Obama administration…
 
Trader said:
Steve Wynn is getting a big audience because his company is doing so well. He is earning record profits for his stockholders by investing heavily to serve his cutomers well.
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Good luck telling that to all the people who think “record profits” = evil, greedy, etc. :o
 
SamH said:
Imagine that, a communist dictatorship being easier to deal with than the Obama administration…
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Shortly after he was inaugurated the President spoke out strongly against a large bank that was planning a sales meeting in Las Vegas. That bank caved in and several other large companies cancelled similar meetings. Since Las Vegas lives and dies with convention traffic, many jobs were lost and housing values suffered even more. It almost cost Harry Reid his senate seat, so it wasn’t all bad. 😉
 
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