04 May 2015

The Clown Car Gets Even More Full

The Abridged version of CarlyFiorina.org.

Her campaign forgot to register it.

This is unsurprising, seeing as how in her last campaign, she put out the notorious: 

Demon Sheep Ad (Not a parody, really)
Carly Fiorina has formally announced that she is running for President.

In what is an amazing amount of hubris, even by the standards of a Presidential campaign, she will be running on her record as CEO of Hewlett Packard:
Carly Fiorina became the second woman and the first former chief executive to enter the 2016 presidential campaign when she announced on Monday that her private-sector background and conservative credentials made her best positioned to capture the Republican nomination and take on Hillary Rodham Clinton.

Ms. Fiorina’s long-shot campaign — polls show only a sliver of Republicans would support her at this stage — has nevertheless attracted the attention of conservatives in early nominating states, largely because of her increasingly pointed attacks on Mrs. Clinton and her impassioned anti-abortion position. (“Liberals believe that flies are worth protecting but that the life of an unborn child is not,” she said in January.)

“I think I’m the best person for the job because I understand how the economy actually works,” Ms. Fiorina told George Stephanopoulos of ABC News on Monday. “I understand executive decision-making, which is making a tough call in a tough time with high stakes.”
Her record is that she nearly destroyed HP.

Employees began spontaneously singing, "Ding Dong the Witch is Dead" at multiple HP sites when the news of her firing broke.

She also approved Lucent's infamous "Brown Ring of Ambivalence" Logo
Before that, she was the,  president consumer products and later also the president for the global service provider business at Lucent, where she oversaw financing deals that essentially had Lucent paying money to customers to buy their gear:
Dig under the surface, however, and the story grows more complicated and less flattering. The Lucent that Fiorina walked away from, taking with her $65 million in performance-linked pay, was not at all what it appeared. Nor were several of her division’s biggest sales, including the giant PathNet deal.

The Lucent-Fiorina story starts in 1995, when AT&T began to consider selling one of its crown jewels, its equipment-making division. The group had $21 billion in annual revenue and housed the famed Bell Labs, birthplace of the transistor and corporate America’s preeminent research outfit.

Spinning off the equipment group into a separate company had instant appeal. As a separate company, Lucent could sell gear to AT&T’s competitors on an even footing with Nortel, Cisco and others. The timing was also perfect. In the late 1990s companies like Worldcom, Qwest and Global Crossing were laying fiber optic cables around the country and the world. Start-ups like Winstar were spending billions on new-fangled wireless networks. Dozens of small companies including PathNet came up with designs for other types of telecom networks.


In the giant PathNet deal that Fiorina oversaw, Lucent agreed to fund more than 100% of the company’s equipment purchases, meaning the small company would get both Lucent gear at no money down and extra cash to boot. Yet how could such a loan to PathNet make sense for Lucent, even based on the world as it appeared in the heady days of 1999? The smaller company had barely $100 million in equity (and that’s based on generous accounting assumptions) on top of which it had already balanced $350 million in junk bonds paying 12.25% interest. Adding $440 million in loans from Lucent to this already debt-heavy capital structure would jack the company’s leverage up to 8 to 1, and potentially even higher as they drew more of the loan.

Fiorina says in her autobiography that she pushed back against the pressure for short-term growth at any cost, and two former Lucent collegues with whom she remains friendly back her up. On the other hand, this 2001 Fortune story, which described Lucent’s irresponsible growth habits, cites sources saying Fiorina made it known that Wall Street would generously reward companies that emphasized and delivered robust revenue growth. And an executive who sat across the table from Fiorina in a big vendor financing negotiation, when asked this week about what he remembers of the bargaining, described Fiorina as being dead set on chalking up a huge sale. He adds: “The press release was always very important to her.”
(emphasis mine)

And she thinks that she can run for President, or more likely, she thinks that the Presidential run will set the table for another future Senate bid.

It appears that she has learned nothing from her shellacking by Barbara Boxer. (10% in 2010, which was a Republican wave election)


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