Jack Welch Terminates Contract With Reuters, Fortune In Aftermath Of Infamous Tweet

Tyler Durden's picture

The fallout in the aftermath of last week's infamous tweet by Jack Welch in which he dares to accuse the BLS of manipulating labor data (the same BLS which has already been purposefully caught leaking data, but never actually caught red handed manipulating it: after all things like these don't happen, Liborgate notwithstanding), something which it did (although the one thing that nobody dares to say is "why" because if suddenly it becomes clear that if this most critical of economic indicators is fudged, then every other one must be) has begun. Moments ago, in response to perceived political badgering by Fortune and Reuters, Jack Welch, the CEO of Chairman of GE from 1981 to 2001, just after the company's stock peaked at $593 billion, the outspoken critic of Obama has decided to sever ties with both the CNN-controlled publication and with the Thomson Reuters organization, and instead going forward will use the WSJ as a platform. What drove Welch over the edge is the now traditional media response of attacking the person instead of the argument whenever the status quo is threatened, in this case predicated by articles by both Fortune and Reuters.

As Fortune's Stephen Gendel explains:

CNNMoney, which shares content with Fortune.com, ran a story on Friday covering Welch's tweet. The piece said that even conservative economists thought Welch was wrong to question the jobs numbers. On Tuesday, Fortune.com ran a story detailing Welch's record as a job destroyer. GE lost nearly 100,000 jobs during the 20 years in which Welch ran the company. "I never put myself out there as an employment agency," Welch told Fortune.

 

Following the story, Welch sent an e-mail to Reuters' Steve Adler and Serwer saying that he and his wife Suzy, who have jointly written for Reuters and Fortune in the past, were "terminating our contract" and will no longer be sending our "material to Fortune." Reuters' story about Welch's tweet quoted money manager and blogger Barry Ritholtz, who said Welch's comments were laughable. Reuters wrote that Ritholtz comments were referring to allegations that Welch regularly manipulated GE's earnings during his tenure as CEO in order to best Wall Street profit estimates.

Reuters used blogger Barry Ritholtz as the centerpiece for its particular debunking:

"This guy is the guy that's telling me the books are cooked? That's hilarious," said Barry Ritholtz, CEO and director of equity research at Fusion IQ in New York, which manages about $300 million in assets. Ritholtz, one of the first to respond to Welch's tweet, was referring to the allegation that during his tenure at GE, Welch sometimes used the GE Capital finance unit to sell quickly assets such as real estate and ensure that the largest U.S. conglomerate regularly beat Wall Street profit estimates.

In addition to blogging, Barry Ritholtz manages $256.7 million for 700 clients according to the latest Form ADV for his firm Fusion Analytics, which employs 18 people, and charges a 0.60% annual management fee for assets managed over $5MM  (link, full investor borchure here). He and his employees are frequent guests on CNBC.

Either way, we have already noted the major issues with the BLS report (here and here). For those who believe that the unemployment rate, which is at a 3+ year low, is indicative of the general status of the US economy, which is now growing at a sub-stall speed ~1.5% GDP, please advise: we have some AJ RMBS we need to offload and are always looking for gullible idiots buyers.

Full Welch letter below:

 

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malikai's picture

I quit, bitchez!

slaughterer's picture

WTI  +4.00%  Qu'est-ce que sait?    

fightthepower's picture

In times of universal deceit, telling the truth will be a revolutionary act

idea_hamster's picture

He doesn't know how or care to change the sig line on his iPad?  Pretty weak.

Or he's pulling down a mint for leaving it stock?  Also weak, IMO.

SoCalBusted's picture

Do you want to complain about the paragraph spacing too?

The Alarmist's picture

No, just the kerning between letters.

On a separate note, if we can't believe the employment statistics, why do we accept with no body or publicly released photographic evidence that Obama et al actually killed OBL?  I personally think the corpse, if there is one, needed to be checked for freezer burn.

phyuckyiu's picture

He's worth a few billion and you're worth your Calfresh card, but hey you're cooler since you know how to change your sig. I'm sure all the hot girls love your l33t Iphone skillz over money.

roadlust's picture

The dude pulls this "belief" completely out his ass, and then gets embarrassed when people ask him to justify it??? Of course you should be able to throw out any kind of whacky conspiracy bullshit without ever having to cite evidence or proof!  The onus should always be on the people you fling the bullshit at, not the flinger of said bullshit.  If the accused can't "disprove" the bullshit enough to satisfy the bullshitter's personal "feeling" about his personal theory, it must be true! That's what science is!  Fox News has proven this formula works with at least 47% of America!  (And an even higher number around here.) 

phyuckyiu's picture

Your King Obama Lies. But hey, your Calfresh card and Unemployment card just got reloaded. FREE SHIT ARMY UNITE! Grannypurps.com awaits! Wait, Obama raided Harborside Health and Oaksterdam with FBI agents? I'm sorry my cognitive dissonance does not compute.

Radical Marijuana's picture

Yeah, and in those times a well-developed macabre sense of humour appears to be the only psychological defence left!

LawsofPhysics's picture

love it.  Plenty of demand around.  Rattle those sabers some more!!

Stoploss's picture

There will come a day when every single one of these mother fuckers will hang by the neck until DEAD...........................

Global Hunter's picture

I object...if they're using rope, if they use piano wire I'm down with it

Winston Churchill's picture

As long as its part of hanging,drawing and quartering I don't mind rope.

gmrpeabody's picture

"I object...if they're using rope, if they use piano wire I'm down with it"

You remind me of somebody....

Shizzmoney's picture

I tried to kill myself once using rope I bought from Home Depot...

.....................thankfully for me, it was Made In China and broke.

Bagbalm's picture

Very few people keep rope now - they'll have to use extension cords.

fightthepower's picture

At least now I know not to trust anything Barry Ritholtz says ever again. 

Fredo Corleone's picture

Present Welch with an offer he can't refuse: contributor status on ZH.

GetZeeGold's picture

 

 

Molly geez......Jack's coming to Fight Club?

JPM Hater001's picture

I dont think he has what it takes.  Leave him outside.

MachoMan's picture

"you're too old, fat man"

malikai's picture

If I remember correctly, the story goes something like this:

Towards the end of the Reign of Terror, Talleyrand (who had be a supporter of Robespierre) switched sides, publicly condemning the killings. He had smelt the air. He then joined sides with Napolean. We know what happened to Robespierre and Napolean. But what happened to Talleyrand is far more informative: He died an old, wealthy man, a "statesman" who outlived several bloody revolutions and wars.

The Alarmist's picture

I was explaining to colleagues earlier today that today's Europe is like England and Scotland of Yesteryear.  Why did the Scottish nobels hang William Wallace out to be hanged and drawn and quartered?  Because they, like current Eurozone country functionaries, were cut into the deal ... the average citizen of the Eurozone willl be allowed to twist in the wind because their representatives know that they will be well taken care of while the Eurozone apparatus continues to exist.

They unfortunately do not perceive they can be dragged into the hell to which they have condemned the rest of their underlings.

nonclaim's picture

It's never too late to open your eyes.And to remember that BR gained popularity in the beginning for pointing fudged numbers in BLS and other gov reports... what a sell out he turned out to be...

fuu's picture

I thought Bailout Nation was alright.

nonclaim's picture

yep, it was when he started his fund that the flip-flop statements started... more and more until no more flipping and only flop remained. Either way, he's free to make his choices.

GolfHatesMe's picture

Dear Reuters, Be Fruitful and multiply. -   Sincerely, Jack Welch

SilverRhino's picture

"This guy is the guy that's telling me the books are cooked? That's hilarious," said Barry Ritholtz, CEO

Sometimes that childhood wisdom really does apply.   "It takes one to know one"   (Book cooker)

vato poco's picture

Hard to know who to root for in this deal. Welch is a lying, tough talkin' pussy poser who A) gets mad, stamps his little foot and runs home like a little bitch when someone dares to criticize something he said B) after he spent a career telling the tens of thousands of people he fired to 'suck it up like a man & stop whining!' and C) ran a company that miraculously brought in numbers just a teensy bit higher than the previous quarter for 80 straight quarters or so........which makes his complaints about 'cooked numbers' just a TAD ironic.

OTOH, Ritholtz is at least as big an asshole as Welch, just on a smaller scale. OT _Other_ OH, CNN/Reuters sucks donkey dicks. It's like the Dark Unholy Trinity: the trifecta of assholishness.

Can we just hate 'em all??

Disenchanted's picture

 

 

"Can we just hate 'em all??"

 

I'm way ahead of you...I already do hate em all, and have for quite awhile.

mayhem_korner's picture

 

 

Dear Reuters:

    You don't know Jack.

BidnessMan's picture

Sometimes voting with your feet is the best alternative.

mayhem_korner's picture

 

 

I was thinkin' Jack sorta voted with his middle digit.

Thomas's picture

Jack went up multiple notches in my book due to this affair. The only weak point was in the middle when he seemed to waffle a little. Call them fucking liars, tell them your bullshit meter is pegging, and point out that this shit has been going on since LBJ or earlier. Tell them that the Birth-Death model is a total lie--a third trimester abortion. Tell them that anybody who doubts men conspire is an idiot and an asshole. In short, tell them the "conpiracy theorist" antagonists to fuck themselves. This shit pisses me off. Of course the assertion that they cooked the books is credible. Right? Wrong? Who know? But credible? You betcha!

Inthemix96's picture

Rats jumping ship.

No more, no less.  Fuck you squelch, you're card is marked.

Stinking coward, just wait till the shit hits squelch, worm your filthy way out of that one you money hungry job wrecker.

Yes We Can. But Lets Not.'s picture

Reuters = Leftist Propaganda Shop

JPM Hater001's picture

I worked for GE and I will never forget what a co-worker said of Jack Welch at the time...

 

The fish always rots from the head down.

azzhatter's picture

I was a long time SR Exec at GE during Jack's reign of terror. He's a prick, no doubt about it. But I agree with him on the BLS. Jack's a ratfuck and he knows a ratfuck when he sees one.

 

And GE did cook the books. Every quarter if we were off a little, just book an asset sale to make the difference. Strongarm some poor bastard that owed us money to buy something, even at inflated prices just to make the number. The whole place was pyschotic at closing time for the quarters.

williambanzai7's picture

How many six sigma black belt degrees did you have ;-)

Osmium's picture

We still have idiots doing that lean bullshit where I work.  Fck.

GetZeeGold's picture

 

 

I smelt Immelt once in a elevator.....couldn't get that dead fish out of my nose for a good week.

 

The Alarmist's picture

Puhleeze, he wears a decent cologne. It's his character that stinks, which is sad coming from a nice midwestern boy.

azzhatter's picture

Only one and I admit I cheated on the test. I had a statistics nerd with me to give me the answers

The Alarmist's picture

One. The funny thing about a six-sigma black belt is that it only takes 3 sigma to qualify.