What do you do when facing down the reality that your 45-year-old multi-billion dollar logistics company is staring down the barrel of a value decline that is pushing it to the brink of crisis with no end sight?
Did you say "Blame the world?" Then you might be ready to run FedEx...
FedEx sank 10 percent on Wednesday, on track for its worst day in more than 10 years, a day after Chairman and CEO Frederick Smith said most of the issues facing the company are the result of politicians around the world.
“I’ll just conclude by saying most of the issues that we’re dealing with today are induced by bad political choices,” Smith said. “I mean, making a bad decision about a new tax, creating a tremendously difficult situation with Brexit, the immigration crisis in Germany, the mercantilism and state-owned enterprise initiatives in China, the tariffs that the United States put in unilaterally. So you just go down the list, and they’re all things that have created macroeconomic slowdowns.”
We have fun, but Fred Smith is not just some suit, he's one of the last living Fortune 50 founders and CEOs. He's a to-the-manor-born good old boy who was also in Skull and Bones at Yale. If there's an Illuminati, Fred Smith is in it. When a guy like Smith says that the world is going to shit, it should prompt people to listen. It just makes it harder when he's only doing it to defend his own tanking stock price.