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@ e i p j d f t ` n s e w ` n d e e m j t o n s t s j d k e 3 : 6 : .
www.BecsieyCiied.kno
B e c s i e y , C i i e d , K r n w , O e t ` v j d , \ n r t j s & O j i e s , \ . K . , C t t n r d e y s c t I c w
AEBRUCRZ 2
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J.
KC\J]NI
NB[ERQC]JND[
[EDC]NR[@EIBZ[]CZ[JD]NUK@VJ]@CICBCOCKJ]JWED[
[edctnr Rjk`crm [`eiby `cs mnde cd
exkeiiedt gnb na stcyjdf jd tnuk` wjt`t`e penpie na nur stcte. Utjijzjdf c strct-
efy t`ct wcs ajrst usem sukkessauiiy by
t`e icte Gjo Ciied w`ed `e wcs jd t`e
U.[. [edcte,[edctnr [ eiby oches stnps
jd cii 16 knudtjes eck` yecr. [edctnr
Ciied mjm t`e scoe t`jdf murjdf `js tjoe
jd t`e [edcte,usjdf tnwd `cii oeetjdfs
tn kcrry nut `js piemfe na heepjdf `js
ecr tn t`e frnudm jd `js `noe stcte.
[noe na ynu ocy rekcii t`ct [edctnr
Ciied rcd `js ajrst rcke cfcjdst t`e Vcs`-
jdftndkrnwm.[edctnr [`eiby, aniinwjdft`e Ciied iecm,`cs cktuciiy peraektem t`e
tnwd `cii oeetjdf kndkept.]`e sedjnr
sedctnr arno Cicbcoc `cs cirecmy
stcrtem `js cdduci 16-stnp stctewjme
tnur t`rnuf` t`e stcte anr t`js yecr. @e
fnes tn pickes t`ct ints na stctewjme
pnijtjkjcds dever seeo tn `cve t`e tjoe
tn vjsjt. Nd `js tnur inkci resjmedts cre
cbie tn tcih wjt` t`e sedctnr cdm csh
`jo udskrjptem questjnds.
J co tnim [edctnr [`eiby `cs `cm
cbnut 3,=
8/9/2019 The Jere Beasley Report, Feb. 2008
3/52BecsieyCiied.kno ;
cppecr tn be exkeiiedt.Ct t`e tjoe t`js
wcs bejdf wrjtted, t`ere wcs c frect
meci na cktjvjty t`ct knuim fet 2
8/9/2019 The Jere Beasley Report, Feb. 2008
4/52= BecsieyCiied.kno
t`e stctes `jf`est knurt `cs dever
cmmressem `nw tn knopute t`e pedcity
jd rnycity mjsputes w`ere t`ere cre cisn
pnst-gumfoedt jdterest pcyoedts mue.
Exxnd dnw kndtedms t`ct t`e pedcity
js cktuciiy jdterest, w`jk` js c tntci
reversci na jts prevjnus pnsjtjnds nd t`js
jssue. ]`e knopcdy `cm beed kndsjs-
tedtiy icbeijdf t`e pedcitycs c pedcity
cdm dnt jdterest.V`ed jt sujtem t`ejrictest pnsjtjnd, t`ct icbeijdf qujkhiy
s`jatem arno pedcitytn jdterest.
]`e $32
8/9/2019 The Jere Beasley Report, Feb. 2008
5/52BecsieyCiied.kno 5
Cicbcoc stcte knurt nd Gcducry 3=t`, we
prnvem t`ct Anrm hdew cd nkkupcdt wcs
2< tjoes onre ijheiy tn be egektem ja c
mnnr kcoe nped. Jt wcs cisn estcbijs`em
t`ct Anrm hdew cd nkkupcdt w`n js
egektem js =< tjoes onre ijheiy tn mje.
Cit`nuf` iecrdjdf na Anrms hdnwiemfe
nd t`js subgekt mjmdt knoe cs c surprjse,
we were s`nkhem tn iecrd t`ct jt `cm cd
extreoeiy mcdfernus mnnr `cdmie-ictk`systeo.Ve set nut tn prnve w`ct Anrm
hdew, w`ed t`ey hdew jt, cdm w`ct t`ey
mjm cbnut jt.Ve iecrdem murjdf mjsknv-
ery t`ct t`js mcdfernus kndmjtjnd cktu-
ciiy exjsts jd cii A-35
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Frc`co Esmcie, Fref Ciied, cdm J
`cdmiem t`js kcse. Frc`co mjm cd nut-
stcdmjdf gnb jd `js pretrjci mjsknvery
eaanrts.]`e conudts na bnt` settieoedts
cre kndajmedtjci.
CDN]@ERU[] KC[E[E]]IEMJDDNR]@CICBCOC
Nur ajro `cs rekedtiy settiem c kcse
jdvnivjdf cd udmerfrnudm stnrcfe tcdh
(U[]) iech jd Mekctur,Cicbcoc. Jd t`js
kcse, we represedtem acojijes w`n ijvem
nd prnperty bnrmerjdf c fcsnijde stctjnd
hdnwd cs Bums Dn. 3.]`e iech wcs mjs-
knverem by t`e stctjnd nwder, \etrn-
ieuo [cies, Jdk., jd 3:::. ]`e stctjnd
t`ed `jrem @jf`icdm ]ek`djkci [ervjkes,
Jdk. tn kiecd up t`e iech cdm tn stnp jt
arno sprecmjdf.
Nur kijedts mjm dnt iecrd cbnut t`e
iech udtji 2
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JJJ.
]`e \resjmedtjci
[weep [tches
]@ECOERJKC\EN\IECRE[@CHJDFU\]@E\NIJ]JKCI\CR]JE[
Cater t`e vntes jd Jnwc, Dew @cop-
s`jre, Devcmc, cdm [nut` Kcrnijdc, jtmnesdt tche c pubijk npjdjnd pnii tn teii
us t`ct t`e Coerjkcd penpie cre pretty
weii aem up wjt` t`e pnijtjkci systeo jd
t`js knudtry. Dejt`er mn we deem c pnii-
ster tn teii us anihs cre upset wjt` onst
na t`e dctjndci pnijtjkjcds. ]`e buzz-
wnrm jd t`e ecriy vntjdf stctes qujkhiy
bekcoe k`cdfe. \icjdiy put, anihs gust
mndt trust onst pnijtjkjcds nd t`e
dctjndci ieveiwjt` gustjajkctjnd jd
ocdy kcsescdm cre meocdmjdf mrcstjk
k`cdfes jd t`e wcy t`e aemerci fnverd-oedt nperctes. Onst Coerjkcd kjtjzeds
aeei ieat nut na t`e systeo cdm murjdf
t`e prjocry secsnd t`ey cre iettjdf t`ejr
aeeijdfs be hdnwd.]`e rekedt vntes cre
t`e best evjmedke na t`e strndf mesjre
anr k`cdfe cdm t`ct c strndf knddektjnd
tn t`e stctus qun cdm espekjciiy tn t`e
Bus` refjoe sjopiy wndt seii jd t`js
udstcbie kijocte.
Ct yecrs edm, c Vcii [treet Gnurdci/
DBK Dews pnii s`nuim `cve ciertem us
tn w`ct wcs fnjdf nd condfst t`epenpie ckrnss t`e knudtry. ]`e pnii
reveciem t`ct =1% na t`e penpie wcdt
ocgnr reanros cdm c brcdm dew cdm mja-
aeredt cpprnck` tn fnverdjdf.]`e onnm
wcs scjm tn suppnrt onre t`cd socii
jdkreoedtci k cdfes,cdm cii na t`e ecriy
vntes kndajro jt. Onst anihs beijeve t`ct
fnverdoedt respndms tn t`e rjk`, pnw-
eraui, cdm weii-knddektem cdm t`ct cii na
t`e rest na t`e kjtjzeds cre ieat nut. Jts
cisn qujte cppcredt t`ct t`e Coerjkcd
penpie ct yecrs edm mjmdt wcdt w`ctwnuim conudt tn be c Bus` ]`jrm
]ero cdm t`ct aeeijdf seeos tn `cve
jdtedsjajem.
]`e onnm na t`e penpie kertcjdiy
cppecrs tn be anr ocgnr k`cdfes. Jdter-
estjdfiy, t`ree jd 3< respndmedts jd t`e
pnii kndmuktem anr V[G/DBK scy t`e
twn-pcrty systeo js serjnusiy brnhed
cdm t`ct t`e knudtry js jd deem na c
t`jrm pnijtjkci pcrty.]`ct ajdmjdf by t`e
pniister wcs onst sjfdjajkcdt, jd oy
npjdjnd.]`e aniinwjdf cre snoe na t`e
sjfdjajkcdt ajdmjdfs arno t`e pnii, w`jk`
wcs mnde jd icte Mekeober7
Anihs mndt reciiy trust t`e Bus`
Cmojdjstrctjnd cdm bicoe t`nse jd
k`crfe anr onst na t`e dctjnds ekn-
dnojk prnbieos. C ocgnrjty na t`e Coerjkcd penpie
mjscpprnve na t`e peranrocdke na
oeobers na Kndfress.
]`e knudtry wcdts nur trnnps nut na
Jrcq.
]`e penpie wcdt reci iecmers`jp
w`ed jt knoes tn pjkhjdf c sukkessnr
tn \resjmedt Bus`.
Meonkrcts mjspicy onre zeci anr t`ejr
presjmedtjci k`njkes.
Coerjkcds na cii cfes cdm refjnds ijst
fcsnijde prjkes cs t`e ekndnojk wne
onst caaektjdf t`eo, aniinwem by
`ecit` knsts cdm retjreoedt scvjdfs.
]`e subprjoe iedmjdf prnbieos cre
nd t`e ojdms na anihs cii ckrnss t`e
icdm.
V`ed ynu kndsjmer t`ct we `cve `cm
seved very bcm yecrs udmer c Repubij-
kcd Cmojdjstrctjnd t`ct mnesdt seeo tn`cve cdy kndkerd anr t`e reci prnbieos
ackjdf onst Coerjkcd kjtjzeds, t`e
onnm anr k`cdfe s`nuim acvnr t`e
Meonkrctjk \crty. But, jt oust be
reoeoberem t`ct t`e dctjndci Meonk-
rcts `cve mrnppem t`e bcii sn bcmiy jd
t`e icst twn presjmedtjci eiektjnds t`ct J
wnuimdt ruie nut cdnt`er oess-up t`js
tjoe crnudm. J `npe t`e tredm na insjdf
rckes t`ct s`nuim `cve beed wnd wjii be
reversem t`js yecr.
[nurke7 Vcii [treet Gnurdci
EIEK]JNDZECRJ[[UE[CREBEFJDDJDF]NKNOEJDANKU[
Dnw t`ct we `cve snoe ecriy vntes
be jdm us, J wjii ctteopt tn tche c ijttie
kinser innh ct t`e spekjajk jssues t`ct cre
bejdf mebctem by t`e kcdmjmctes arno
bnt` pcrtjes w`n wcdt tn ijve ct 31
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w`n wcdts tn be presjmedt. Udiess
t`jdfs k`cdfe qujkhiy, cdy kcdmjmcte
ijdem up wjt` t`e Bus` Cmojdjstrctjnd
wjii be jd bjf-tjoe pnijtjkci trnubie.
V`ed ynu kndsjmer t`e treoedmnus
knst na t`e 5-yecr wcr jd Jrcq, bnt` jd
ijves inst cdm ajdcdkjci knsts, t`e resuits
na t`js pnii were eved onre teiijdf.
Ajdcdkjci wnrrjes `cve kiecriy rjsed jd
prnojdedke. ]`ese dew pubijk knd-kerds were reaiektem nd t`e kcopcjfd
trcji jd cii na t`e ecriy prjocry stctes.
Kcdmjmctes cre dnw `jttjdf `crm nd
mnoestjk jssues cdm espekjciiy t`e
ekndnoy. Jts nbvjnus t`ct Meonkrcts
`cve cd cmvcdtcfe nver Repubijkcds
w`ed jt knoes tn knddektjdf wjt` t`ejr
knre vnters, cdm w`jie t`ct s`nuim pcy
naa jd Dnveober ndiy tjoe wjii teii ja t`e
Meonkrcts binw cdnt`er nde.
[nurke7 Cssnkjctem \ress
]@EEMVCRM[OE[[CFEVJIIKND]JDUE]NBE@ECRM
Refcrmiess na `nw oy fnnm arjedm
Gn`d Emwcrms ajdjs`es jd `js rud anr t`e
V`jte @nuse, `e `cs ocme c ocrh nd
t`e kcopcjfd t`ct js extreoeiy jopnr-
tcdt.]`e vntes jd Jnwc,Dew @cops`jre,
cdm Devcmc weredt excktiy w`ct t`nse
na us w`n beijeve strndfiy jd Gn`ds kcd-
mjmcky `cm expektem.]`js jssue wedt tn
t`e prjdter beanre t`e Meonkrctjk
prjocry vnte jd [nut` Kcrnijdc. [n t`ct
nutknoe wcsdt hdnwd w`ed J wrnte
t`js pjeke. But, nde t`jdf t`ct `cs knoe
nut na t`e pnijtjkci mebcte t`us acr `cs
beed Gn`ds oesscfe cbnut knrpnrcte
freem.]`ct t`eoe, knobjdem wjt` `js
mjskussjnd na t`e jdaiuedke na t`e pnw-
eraui inbbyjsts jd Vcs`jdftnd, sedt c
very strndf oesscfe. Udanrtudcteiy,
t`nse w`n nwd t`e oemjc nutiets arnze
Gn`d nut very ecriy jd cd eaanrt tn heep
`js vnjke jd k`ekh. But, `js pnweraui
oesscfe wcs ecrm by t`e nt`er kcdmj-
mctes cdm t`cts udmjsputem.]`ere cre
ocdy spekjajk excopies na knrpnrcte
freem cdm `nw jt wnrhs.]`e dn-bjm knd-
trckts rekejvem by @nustnd-bcsem @ci-
ijburtnd anr wnrh jd Jrcq cdm t`e reknrm
prnajts ecrdem icst yecr by ExxndOnbji,
t`e wnrims icrfest nji knopcdy, were
kjtem by Gn`d cs prjoe excopies na knr-
pnrcte freem knobjdem wjt` pnijtjkci
jdaiuedke jd jf` pickes. J cfree wjt`
Gn`ds kndkiusjnd t`ct knrpnrcte freem
js hjiijdf t`e auture anr k`jimred na nrmj-
dcry anihs jd nur knudtry.
Gn`d wcs t`e ajrst Meonkrctjk kcdmj-
mcte wjiijdf tn tche nd t`e knrpnrcte
kuiture t`ct ansters freem cdm knrrup-
tjnd. Dnw jt cppecrs t`ct [edctnrs
Nbcoc cdm Kijdtnd cdm, eved ct iecstnde Repubijkcd. Ojhe @ukhcbee,w`n js
dnw ajdmjdf nut w`ct Gn`d iecrdem t`e
`crm wcy, s`nws snoe prnojse nd t`nse
jssues. Gn`d trjem `crm tn kndvjdke
vnters t`ct stcdmjdf up tn t`e pnweraui
jdterests jd Vcs`jdftnd, w`jk` rud t`e
fnverdoedt anr t`e finrjajkctjnd na knr-
pnrcte prnajts js krjtjkciiy jopnrtcdt.
But, t`e rnkh-stcr qucijty na [edctnr
Nbcoc cdm t`e nrfcdjzctjnd shjiis na t`e
Kijdtnds tnnh kedter stcfe jd t`e ecriy
vntjdf. Cs stctem cbnve, t`e dctjndcioemjc vjrtuciiy jfdnrem t`e Emwcrms
kcopcjfd arno t`e befjddjdf, cdm t`ct
`urt Gn`ds k`cdkes. ]`e Nbcoc kco-
pcjfd `cs mnde c ocsteraui gnb na
ochjdf t`e Jiijdnjs [edctnr t`e kcdmj-
mcte na k`cdfe jd t`js eiektjnd yecr.
[edctnr Kijdtnd tnn `cs wnrhem `crm tn
heep pcke nd t`e k`cdfe jssue, cdm tn
s`ukh er stctus qun jocfe.
[cmiy, stcdmjdf up tn t`ese
edtredk`em ondeyem jdterests t`ct cve
cd jrnd-ajstem frjp nd fnverdoedt jd nurknudtry mnesdt ciwcys resuit jd c
wjddjdf kcopcjfd. J `npe t`ct wndt
wjdm up bejdf t`e kcse t`js yecr.
Cit`nuf` Gn`d Emwcrms `csdt wnd c
rcke yet, cdm ocy dever mn sn, `js
oesscfe wndt fn cwcy. Refcrmiess na
w`et`er Gn`d wjdms up cs t`e Meonk-
rctjk dnojdee, `e stcrtem c pnijtjkci
mebcte t`ct wjii kndtjdue pcst t`js
prjocry secsnd. Jd oy npjdjnd, t`js ocd
s`nuim be knooedmem anr tchjdf c
stcdm![nurke7 Binnoberf
JQ.
IEFJ[IC]JQE
@C\\EDJDF[
IEFJ[IC]JQEBNMJE[CRNUDM]@EKNUD]RZVJIIBEBU[Z]@J[ZECR
]`ere cre c frect duober na jssues
t`ct wjii be mecit wjt` by stcte iefjsic-tures crnudm t`e knudtry t`js yecr.
]`ese jssues wjii knver c duober na krjt-
jkci octters, rcdfjdf arno bumfetcry
prnbieos tn joojfrctjnd jssues. [tcte
iefjsictnrs wjii cisn be kciiem nd tn ajx
everyt`jdf t`ct wedt wrndf jd 2
8/9/2019 The Jere Beasley Report, Feb. 2008
9/52BecsieyCiied.kno :
jsictjve `ciis crnudm t`e knudtry t`js
yecr7
Bumfet \rnbieos7 Cionst every
stcte, jdkiumjdf Cicbcoc, wjii `cve
severe mjaajkuitjes jd audmjdf stcte
bumfets.Ja t`e dctjnds ekndnoy tches
c dnsemjvecs premjktembumfets
t`ct mepedm nd scies tcxes wjii suaaer.
Jiiefci Joojfrctjnd7 Vjt`nut cmnubt, iefjsictnrs wjii mebcte t`e
joojfrctjnd jssue jd vjrtuciiy every
stcte. Jd oy npjdjnd,t`js js onre pnijt-
jkci jd dcture t`cd onst na t`e jssues
tn be mebctem.Everybnmy wcdts tn fet
nd t e joojfrctjnd bcdmwcfnd. J
`cve tn wndmer w`y jt tnnh snoe sn
indf tn reknfdjze t`js cs c bjf
prnbieo.
Jdarcstrukture Repcjr7 ]`e J-;5V
brjmfe kniicpse jd Ojddecpnijs icstsuooer prnoptem c recssessoedt na
jdarcstrukture ckrnss t`e knudtry.
Rncms cdm brjmfes jd mjsrepcjr cre
inkctem jd cionst every stcte. Jt wjii
tche bjiijnds na mniicrs tn ajx t`e
prnbieo. \nijky ochers oust mjrekt
substcdtjci revedue tn repcjr cdm
ocjdtcjd jdarcstrukture.Anihs cre ocm
cbnut `jf` fcs prjkes dctjndwjme cdm
t`ct oches cd jdkrecse jd t`e fcs
tcxest`e snurke na audmjdfcionst
jopnssjbie.Cs c resuit,iefjsictnrs oustinnh eisew`ere anr t`e deemem audms.
Jd cmmjtjnd tn t`e scaety rjshs expnsem
by t`e Ojddecpnijs brjmfe kniicpse,
t`e rcpjm rjse jd kndstruktjnd knsts
wjii cisn inno nver eck` na t`ese mjs-
kussjnds. [tctes wjii ijheiy `cve tn
bnrrnw ondey tn bujim dnw, beanre
kndstruktjnd prjkes fn eved `jf`er.
Onrtfcfe Anrekinsures7 Jd respndse
tn t`e dctjndci anrekinsure epjmeojk,
iefjsictures jd ocdy stctes cre kndsjm-
erjdf nver`cuis na t`e iedmjdf jdmustry.]`e dext federctjnd na `noebuyers
oust be prntektem.But, iedmjdf reanro
federciiy wndt `eip t`e `udmrems na
t`nuscdms na `noenwders w`n
cirecmy `cve cmgustcbie-rcte onrtfcfes
cdm w`nse jdterest rctes cre sk`em-
uiem tn shyrnkhet. [noe stctes cdm t`e
aemerci fnverdoedt cre tryjdf tn `eip
`noenwders jd cmgustcbie-rcte onrt-
fcfes cvnjm ever pcyjdf t`e exnrbjtcdt
jdterest pcyoedts.Iedmjdf reanro cdm
reajdcdkjdf cre gust twn pjekes na t`e
respndse tn w`ct `cs qujkhiy beknoe
nde na t`e `nttest tnpjks jd stcte fnv-
erdoedt. [tctes cisn cre innhjdf ct
krckhjdf mnwd nd cpprcjsci arcum,
nver`cuijdf t`e anrekinsure prnkess,
cdm cssjstjdf knooudjtjes tn remuke
udnkkupjem `noes. ]`e anrekinsurekrjsjs js c onst serjnus prnbieo cdm
oust be cmmressem.]`e ickh na strndf
kndsuoer prntektjnd icws jd ocdy
stctes `eipem fjve rjse tn t`js prnbieo.
Vcter \nijky7 [nut`ecsterd stctes cre
recssessjdf cdyt`jdf cdm everyt`jdf
reictem tn wcter pnijky. ]`e ickh na
rcjdacii `cs `urt acroers cdm krectem
aecrs na wcter s`nrtcfes aecrs t`ct,
jd snoe stctes,cirecmy `cve beed reci-
jzem.]`e mrnuf`t knoes jd c refjndudckkustnoem tn wcter wnes. Frnwt`
js tjem mjrektiy tn nur wcter-suppiy
prnbieos. Cicbcoc js anrouictjdf c
wcter ocdcfeoedt picd, w`jk` js
indf nvermue.
@nspjtcis cdm @ecit`7 Jt `cs beed
repnrtem t`ct bckterjci jdaektjnds hjii
kinse tn 3:,
8/9/2019 The Jere Beasley Report, Feb. 2008
10/523< BecsieyCiied.kno
pcst severci weehs kndkerdjdf t`e deem
tn rjf`t c frjevnus wrndf w`ed jt
knoes tn t`e jssue t`ct fcve rjse tn t`js
iefjsictjnd. C rekedt emjtnrjci jd t`e
Bjrojdf`co Dews t`ct cppecrem nd
Gcducry =t` js kertcjdiy wnrt` recmjdf.
Jts nde na t`e best cssessoedts na t`e
jssue t`ct J `cve seed sn acr. @npeauiiy,
cii na nur iefjsictnrs recm jt!
IEFJ[IC]NR[[@NUIM\C[[[]RNDFKCO\CJFDAJDCDKEREANROIEFJ[IC]JND
V`jie t`ere `cs beed ints na tcih
cbnut t`e deem anr kcopcjfd ajdcdke
reanro, t`us acr jts gust t`cttcih.]`e
bjiis t`ct cre bejdf jdtrnmukem t`us acr
cppecr tn be fnnm ndes but t`ey reciiy
mndt fn acr ednuf` tn snive t`e reci
prnbieo.Udiess t`e Iefjsicture ackes up
tn t`e reci jssue,cdm t`ct js spekjci jdter-
est ondey, t`e prnbieos caaektjdf
Cicbcocs pnijtjkci systeo wndt be
snivem. J reknooedm cmmjdf t`e aniinw-
jdf jteos tn cdy pckhcfe na kcopcjfd
ajdcdke reanro bjiis t`ct ocy be jdtrn-
mukem murjdf t`e sessjnd7
Iefjsictjnd tn restrjkt t`e tntci
conudt na kcopcjfd ondey jd
stctewjme eiektjnds t`ct kcd be fjved
by cd jdmjvjmuci,knrpnrctjnd,nr nt`er
edtjty tn $5,
8/9/2019 The Jere Beasley Report, Feb. 2008
11/52BecsieyCiied.kno 33
]`e Coerjkcd penpie `cve beed sub-
gektem tn c kndstcdt bcrrcfe na jdanroc-
tjnd t`ct pcjdtem c acise pjkture na c
gumjkjci systeo t`ct wcs nut-na-kndtrni.
]reoedmnus suos na ondey were spedt
by t`e tnrt reanro frnups,w`jk` kcrrjem
nut kcreauiiy nrk`estrctem oemjc cdm
frcssrnnts kcopcjfds. Ache frcssrnnts
frnups were anroem jd stctes wjt` dcoes
ijhe Kjtjzeds Cfcjdst Icwsujt Cbusecdmwere `ecvjiy audmem jd c `jf`iy sekret
acs`jnd.]`ey eop`csjzem eiektjdf cppei-
icte gumfes w`n wnuim prntekt knrpnrcte
wrndfmners cdm jfdnre iefjtjocte kicjos
by vjktjos. ]`e weii-picddem, `jf`iy-
nrfcdjzem cdm weii-ajdcdkem kcopcjfd,
w`jk` wcs dctjndci jd sknpe cdm
mesjfdem tn prntekt knrpnrcte wrndfmn-
ers,`cs beed onst eaaektjve.
Jd rekedt yecrs, cd cdduci repnrt `cs
beed reiecsem tn t`e oemjc ct yecr-edm
t`ct frcmem t`e stctes nd `nw weii t`ey`cve respndmem tn t`e 35-yecr tnrt
reanro kcopcjfd purpnrtjdf tn rcdh
stctes nd `nw weii nr pnnriy t`e knurt
systeos jd t`e stctes audktjndem.]`ese
repnrts were kcrrjem jd stcte dewspc-
pers cdm repnrtem by oemjc nutiets cs
bejdf t`e fnspei trut`.]`js wcs pcrt na
t`e Rnve picd cdm jt `cs wnrhem. [tctes
were icbeiem cs gumjkjci `eii-`nies cdm
dnbnmy ever reciiy cshemw`y> @npe-
auiiy, t`jdfs `cve befud tn k`cdfe cdm
t`e tnrt-reanroers cre bejdf expnsem csdnt`jdf onre t`cd pcjm prntektnrs na
knrpnrcte wrndfmners.
CDN]@ERQNJKEJD]@E\REEO\]JNDBC]]IE
]`e Bus` Cmojdjstrctjnd `csdt
sinwem mnwd nd t`ejr pus` tn prntekt
knrpnrcte wrndfmners cdm pudjs` t`ejr
vjktjos. ]`e picd tn `cve aemerci pre-
eoptjnd s`ut t`e knurt`nuse mnnrs jd
t`e stcte knurt systeos js dnt`jdf onre
t`cd c pcybckh tn Knrpnrcte Coerjkc.
[jfdjajkcdtiy, t`e preeoptjnd bcttie `cs
cttrcktem c duober na pcrtjkjpcdts.
]`ere cre snoe extreoeiy pnweraui cdm
pnijtjkciiy-jdaiuedtjci knrpnrctjnds t`ct
cre meocdmjdf pcybckh arno nur presj-
medt murjdf t`e icst yecr na `js tedure jd
naajke. But, t`ere cre ocdy hdnwiemfe-
cbie anihs w`n cre strndfiy jd nppnsj-
tjnd. C rekedt crtjkie jd t e Dew
Edficdm Gnurdci na Oemjkjde, wrjtted
by t`ree mnktnrs, js weii wnrt` recmjdf
nd t`e subgekt na preeoptjnd. ]`js
crtjkie expicjds t`ejr perspektjve nd t`e
preeoptjnd jssue very weii cdm pnjdts
nut w`y t`e knurts s`nuimdt ciinw jt.
Ja t`e Bus` Cmojdjstrctjnd js sukkess-
aui cdm persnds wjt` iefjtjocte kicjos
jdvnivjdf prnmukts cdm oemjkci mevjkes
cre medjem ckkess tn gustjke, jt wjii bende na t`e wnrst t`jdfs tn `cve `cp-
pedem tn t`e Coerjkcd penpie jd yecrs. J
`npe penpie cre befjddjdf tn udmer-
stcdm `nw serjnus t`e preeoptjnd jssue
js cdm `nw jt caaekts cii Coerjkcd kjtj-
zeds. Ja ynu mndt `cve ckkess tn t`e
Dew Edficdm Gnurdci na Oemjkjde
crtjkie, iet oe hdnw cdm we wjii sedm
ynu c knpy.
[nurke7 Dew Edficdm Gnurdci na Oemjkjde
[U\REOEKNUR]IJOJ][JDQE[]NR[[EKURJ]JE[ICV[UJ][
]`e U.[. [upreoe Knurt `cs ijterciiy
puiiem t`e piuf nd jdvestnrs tryjdf tn
sue suppijers na c knopcdy w`nse
stnkh prjke wcs jdaictem wjt` t`e cjm na
t`e suppijers. Knrpnrcte Coerjkc `cm
wnrhem `crm jd cd eaanrt tn fet t`js
ruijdf by t`e @jf` Knurt.]`e knurt eim
t`ct t`e jdvestnrs mjmdt `cve t`e
prjvcte rjf`t tn sue bekcuse t`ey mjmdt
reiy upnd t`e stcteoedts nr represedtc-
tjnds ocme by t e suppijers. ]`e
jdvestnrs `cm snuf`t tn jopnse ijcbjijty
nd twn edtjtjes, w`jk , cktjdf bnt` cs
kustnoers cdm suppijers, cfreem tn
crrcdfeoedts t`ct ciinwem t`e
jdvestnrs knopcdy tn ojsiecm jts
cumjtnr cdm jssue c ojsiecmjdf ajdcdkjci
stcteoedt caaektjdf jts stnkh prjke. But
t`e [upreoe Knurt kndkiumem t`ct t`e
jopijem rjf`t na cktjnd mnes dnt reck`
t`e kustnoer/suppijer knopcdjes
bekcuse t`e jdvestnrs mjm dnt reiy upnd
t`ejr stcteoedts nr represedtctjnds.
Vjt` cii mue respekt tn t`e gustjkes,
t`cts snrt na `crm tn udmerstcdm.
Jd t`e kcse,jdvestnrs ckkusem twn sup-
pijers cdm kustnoers na kcbie teievjsjnd
knopcdy, K`crter Knooudjkctjnds, na
ciinwjdf K`crter tn ojsiecm jts cumjtnr
cdm jssue c ojsiecmjdf ajdcdkjci stcte-
oedt t`ct jdaictem jts revedue by $36
ojiijnd t`ereby caaektjdf t`e knopcdys
stnkh prjke.]`e meci jdvnivem K`crter
nverpcyjdf anr suppijes jt purk`csem jd
2
8/9/2019 The Jere Beasley Report, Feb. 2008
12/52
tn mjstcdke FN\ kcdmjmctes arno t`e
Bus` V`jte @nuse.Cs J `cve wrjtted jd
prjnr jssues, J co dnt nveriy jopressem
wjt` t`e oed w`n cre seehjdf t`e FN\
dnojdctjnd anr \resjmedt.Cater wctk`-
jdf Gn`d OkKcjd, w`n `cs eoerfem cs
t`e iecmjdf kcdmjmcte anr t`e pcrtys
presjmedtjci dnojdctjnd, recm ijterciiy
wnrm-anr-wnrm c iedft`y speek` cater
`js wjd jd Dew @cops`jre, J `cm tnwndmer ja t`e Crjzndc [edctnr wcs
reciiy t`e best t`e FN\ `cs tn naaer.
Oy jdjtjci recktjnd tn c ocd w`n wcdts
tn be presjmedt recmjdf c speek`nbvj-
nusiy wrjtted by snoebnmy eisewcs
cbsniute mjsbeijea.V`ed J recijzem t`e
[edctnr wcs cktuciiy recmjdf t`jdfs ijhe
Fnm biess cii na ynu, arno c skrjpt t`ct
ocme oe wndmer c ijttie bjt cbnut `js
sjdkerjty. Jd cdy evedt, t`e FN\ seeos
tn be tryjdf tn heep \resjmedt Bus`,
w`n js stjii t`e iecmer na `js pcrty, udmerwrcps cdm nut na sjf`t.
V`jie t`e premjktjnds na c Repubijkcd
kniicpse ocy be ckkurcte, t`e bjf ques-
tjnd reocjdswjii t`e Meonkrctjk
\crty tche cmvcdtcfe na jt> Bcsem nd
ecriy vntjdf pctterds, jts nbvjnus t`e
ocjdstreco Repubijkcd arndtrudders
cre c rct er wejrm kniiektjnd. Anr
excopie, Ojhe @ukhcbee, t`e anroer
Crhcdscs Fnverdnr, cktuciiy tcihs onre
ijhe c Meonkrct. Vjt`nut ondey, cdm
wjt`nut stcaa, `e summediy bekcoe ckndtedmer jd t`e prjocrjes cdm dnw
ajdms `joseia udmer cttckh. [edctnr
OkKcjd, w`n ndke wcs fjved up anr
mecm pnijtjkciiy, js tryjdf `crm tn refcjd
`js anroer jocfe cdm stjii be t`e Bus`
kcdmjmcte. ]`cts c tnuf` rnw-tn-`ne
eved anr t`e [edctnr. C auobijdf Ojtt
Rnodey js stjii `cdfjdf nd cater `js
knoebckh jd Ojk`jfcd, but `js k`cdkes
ct t`e dnojdctjnd cre stjii sijo cdm dnde
jd oy npjdjnd. Arem ]`nopsnd dever
wnhe up cdm mrnppem nut cater t`e[nut` Kcrnijdc vnte. ]`ed t`eres
Rumyw`n js t`e onst skcry na cii
puttjdf cii na `js effs jd nde bcshet,
Ainrjmc. [n acr, dnde na t e Repubijkcd
kcdmjmctes `cve seeoem tn exkjte t`e
vnters. J wndmer w`y>
]`e t`jdf t`ct coczes oe js t`ct
w`ed ynu kndsjmer t`ejr oesscfes,cii na
t`e Repubijkcd kcdmjmctes cre jd rnudm-
cbnut-wcys prnojsjdf anur onre yecrs
na t`e Bus` Cmojdjstrctjnds acjiem pnij-
kjes.]`nse eaanrts rcdfe arno kndtjdu-
jdf t`e \resjmedts wcr jd Jrcq, tn
pursujdf `js eaanrts tn prjvctjze [nkjci
[ekurjty, tn extedmjdf `js bumfet-
bustjdf `cdmnuts anr `js pnweraui knr-
pnrcte arjedms, tn kndtjdujdf t`e rcpe
by t`e nji cdm mruf jdmustrjes na t`e
Coerjkcd penpie. Jd oy npjdjnd, dndena t`nse oesscfes wjii seii t`js yecr. J
beijeve t`e Coerjkcd penpie wcdt reci
k`cdfe cdm t`e prjocry vnters nd [uper
]uesmcy (Aebrucry 5t`) wjii meterojde
w`n jd eck` pcrty kcd kcrry t`ct
bcdder.]`eres nde t`jdf anr kertcjd
anihs mndtwcdt cdnt`er anur yecrs na
t`e Bus` Cmojdjstrctjnds pnijkjes.
J sjdkereiy beijeve t`ct Fenrfe Bus`
`cs beed t`e wnrst \resjmedt w`no J
`cve wjtdessem nver oy yecrs na nbserv-
jdf dctjndci pnijtjks. [eved yecrs catertchjdf naajke, `js cpprnvci rctjdf js
mnwd crnudm 25%,cdm twn-t`jrms na t`e
Coerjkcd penpie beijeve t`e knudtry js
nd t`e wrndf trckh.V`jie t`e Meonkrct
kcdmjmctes kniiektjveiy naaer reci sniu-
tjnds cdm dew jmecs tn prnvjme t`e
Coerjkcd penpie wjt` t`e k`cdfe t`ey
wcdt, t`e Repubijkcds seeo tn naaer
ndiy w`ct conudts tn c t`jrm Bus`
tero. ]`e Meonkrctjk \crty `cs c reci
nppnrtudjty tn tche bckh t`e V`jte
@nuse arno t`e ijhes na Mjkh K`edeycdm Hcri Rnve cdm t`ejr knrpnrcte
bummjes.]`e wjdms na k`cdfebinwjdf
very strndf ckrnss t`e icdmkiecriy
jdmjkcte t`ct dn persnd jmedtjajem wjt`
t`e Bus` Cmojdjstrctjnd wjii mn weii
pnijtjkciiy jd t`e federci eiektjnd cdm
t`ct jdkiumes t`e FN\ dnojdee anr pres-
jmedt. ]`e reci questjnd jswjii t`e
Dctjndci Meonkrctjk \crty ajdm c wcy tn
inse cfcjd>
U.[. K@COBERNAKNOOERKE]@REC]ED[KCDMJMC]E[
Jd yecrs pcst, t`e Coerjkcd penpie
`cve wjtdessem ints na crrnfcdke nd t`e
pnijtjkci skede cdm t`ey `cvedt ijhem jt
very ouk`. Rekedtiy, c ocd w`n `cs
beed c picyer nd t`e pnijtjkci skede
nver t`e icst aew yecrs `cs reck`em c
dew ievei nd t`e crrnfcdke oeter.]no
Mndn`ue, t`e presjmedt na t`e U.[.
K`cober na Knooerke, scys `e wjii
spedm ojiijnds na mniicrs t`js yecr tn
meaect kcdmjmctes `e meeos tn be
udarjedmiy. Jd ochjdf `js pnijtjkci picds
hdnwd,Mndn`ue bncstem7
Ve picd tn bujim c frcss-rnnts
busjdess nrfcdjzctjnd sn strndf
t`ct w`ed jt bjtes ynu jd t`e butt,ynu bieem.
]`e crrnfcdt wcrdjdf arno t`e
dctjnds icrfest tnrt reanro frnup kcoe
cfcjdst c bckhfrnudm na c frnwjdf aecr
by penpie nver t`e kndmjtjnd na t`e U.[.
ekndnoy.C rekessjnd nd t`e `nrjznd, c
wech reknrm na gnb krectjnd, t`e sub-
prjoe onrtfcfe krjsjs, mekijdjdf `noe
vciues,cdm nt`er ajskci prnbieos `cve cii
`eipem oche t`e ekndnoy t`e ocgnr
kcopcjfd jssue. Cii na t`js js reciiy
`urtjdf kcdmjmctes suppnrtem byMndn`ue cdm t`e U.[. K`cober, cdm t`ct
ocy ckknudt anr `js jii-cmvjsem t`rects.
Jt cppecrs t`ct Mndn`ue js t`rected-
jdf presjmedtjci kcdmjmctes ijhe Gn`d
Emwcrms, @jiicry Kijdtnd, cdm Bcrckh
Nbcoc. Eck` na t`eo `cs beed kciijdf
anr k`cdfe nd be`cia na ojmmie-kicss
vnters. Nd t`e Repubijkcd sjme, anroer
Crhcdscs Fnverdnr Ojhe @ukhcbee
eoerfjdf cs c strndfer-t`cd-expektem
kcdmjmcte`cs usem pnpuijst t`eoes jd
`js eaanrt tn cttrckt jdmepedmedt vnters.@ukhcbee, anr excopie, `cs bicstem
bndus pcy anr knrpnrcte k`jea exeku-
tjves cdm t`e eaaekt na udaetterem finbci-
jzctjnd nd wnrhers. Mndn`ue brcfs t`ct
`js frnup wjii pudjs` cdy kcdmjmctes
w`n tcrfet busjdess jdterests wjt` t`ejr
r`etnrjk nr pnijky prnpnscis. @e
jdkiumem kndfressjndci cdm stcte-ievei
kcdmjmctes, cs weii cs t`nse presjmedtjci
kcdmjmctes oedtjndem cbnve jd `js
cddnudkeoedt.
Mndn`ue jdmjkctes t`ct `js nrfcdjzc-tjnd wjii spedm onre t`cd t e $1
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