Gold, Mortgages, & Bigger Things

I encourage everyone to listen to the keynote address at the Denver Gold Forum 2006 September 25 - 26, 2006 by Robert McEwen former Goldcorp CEO and Goldcorp's largest shareholder. This tip is thanks to Adam Michael who posted the link on Minyanville. Scroll down to the 12:00 NOON hour and click the audio play button.

The comments that follow are mine.

You will hear McEwen talk about Goldcorp, Kinross, Newmont and Barrick. He also talks about Wheaton River and Glamis. But that is not what McEwen's message is really about.

McEwen could just as easily have been talking about Countrywide Financial, Chorus Bank, Washington Mutual, Providian, Golden West, and Wachovia. Indeed, his keynote address (for those who really listened) has nothing to do with gold at all.

McEwen's Message is about

• Corporate culture
• Shareholder value
• Growth at any cost
• Management stake
• Making shareholders smile
• Perfect deals
• Paying rent to shareholders
• Losing sight of what's important
  

If you look at the above list you will see nothing that pertains to gold. Instead you will see a philosophic approach to managing a company, any company. McEwen also put together a video mocking the Goldcorp Glamis situation. Adam Michael noted that the Denver Gold Forum responded by suspending McEwen from future shows.

If one equates the Presidency to that of a CEO and taxpayers to shareholders, the proper conclusion is that McEwen (or someone like him) should not be running Goldcorp but the country. Instead we have a president that squashes dissent, continually squanders shareholder value, and mortgaged our future for a bunch of worthless IOUs.

McEwen's speech was about much bigger things than gold, but I wonder how many at the conference managed to hear the real message.

Mike Shedlock / Mish
http://globaleconomicanalysis.blogspot.com/