Pursuing Other Economic Indicators
Federal Reserve Board Chairman Alan Greenspan may be frustrated at the way some economic indicators have failed to respond to the Fed’s actions. But we’re happy to report that one of our favorite indicators is finally turning bullish.
The number of senior executives at major firms who are resigning “to pursue other interests” fell in the first six months of this year to a level that hasn’t been seen since the pre-recession days of 1989.
Pursuing other interests (along with its cousin, the resignation “to pursue other business opportunities”) remains the euphemism of choice when companies announce an executive is abruptly leaving, even when it is involuntary.
The number more than doubled in 1990, the peak year (see chart). Although easing a bit in 1991, the number has remained above historic levels until recent months.
Dan Quayle’s Greatest Hits
All the speculation surrounding Vice President Dan Quayle’s future can only be good news for the sales of one of the newest videotapes hitting the market: “The Unofficial Dan Quayle Video.”
The tape, hosted by satirist Will Durst, is being touted as the veep’s most memorable gaffes from speeches, press conferences and interviews, including his recent blast at television’s “Murphy Brown.”
With luck it should help offset what undoubtedly will be softening sales and rentals for two recent offerings to hit the video stores: “Ross Perot: Straight Talk” and the new CNN documentary “Perot.”
Let the Bad Times Roll
Companies selling stock often warn prospective investors that business could suffer if the economy worsens.
Santa Monica real estate auctioneer Kennedy-Wilson, which is planning a 3.75-million- share public offering, includes in a prospectus a warning about the risks involved should the economy and real estate market improve.
Selling foreclosed real estate has been one of the few growth industries in California the past two years as the recession slammed the state. Kennedy-Wilson saw its revenue more than double in 1991 to $19.6 million from 1990, while its profit increased fivefold to $3.3 million, according to the prospectus.
“There can be no assurance that the company will be able to sustain or increase its current level of revenues and profits if commercial or residential real estate sales rebound from their current downturn,” it says.
Briefly . . .
Bad Omen? Long Beach’s Queen Mary, whose future as a hotel and convention site is on rough seas, has a meeting room named after the sunken ship Lusitania . . . Now he tells us: Imprisoned junk bond financier Michael Milken predicted the 1987 stock market crash but hushed it up because “I hate to talk about things people find painful,” author Jesse Kornbluth quotes him as saying in the new book “Highly Confident” . . . Megabuck business author Bryan Burrough (“Barbarians at the Gate” and “Vendetta”) is leaving the Wall Street Journal for Vanity Fair.
‘POI Index’
The number of executives with major companies resigning “to pursue other interests” dropped sharply through June 30. Figures are through the first half.
1992: 17
1991: 22
1990: 36
1989: 17
