Those of us who live in the Chicago area have paid special attention to the Olympic decision. There are a number of theories about what happened. There was an especially strong analysis from Dick Ebersol, NBC sports & Olympic Chairman.
Watch the video to confirm, but his key point is that the IOC has a European focus and is unhappy with the financial relationships with the USOC. There are issues about how much of revenues come off the top, and what other countries get. Ebersol suggests that without some changes in these fundamentals, also affecting the last bid from New York, it will be many years before we see an Olympics in the US.
His message is that this is an uphill battle -- 18 votes for the US this time, and 19 for NY the last time. It is a problem -- and one not related to partisan politics.
The Kudlow Spin
Regular readers of "A Dash" know that we view the Kudlow show as a useful source of debate about the economy and the market. They also know that we are disturbed by the increased injection of partisan politics, often extending to his assignments as a CNBC anchor, perhaps somewhat better since he is no longer a rumored candidate for office.
In tonight's program Kudlow portrayed the President's decision to go to Copenhagen as a big mistake, undermining US credibility.
What if the President not made the trip? Kudlow might well have blamed the outcome on his failure to participate. It has become routine for national leaders to make a pitch, but Obama had to trade this off with the health program debate. Those present at the US presentation uniformly report that the involvement of the President and the First Lady were the best parts. No one knows what would have happened if Obama had not made the trip, but the critics would have been loud.
Investment Implications?
We understand that Kudlow is competing for ratings, and working in a very conservative time-slot demographic where many are eager to criticize the President.
Briefly put, there are no investment implications from this event. This piling on by Kudlow and his selected guests is more about partisan politics than the investment purpose of his popular program.
Our own viewpoint is that we should be focused on investments, agnostic about politics, and trying to find the best opportunities. Our objective is to make great returns regardless of which party is in power. We seek information that helps in this quest. Overtly partisan messages do not fit.
