Davos – Swiss “Miss” in solving world problems

Covering the World Economic Forum in this small village of Davos, Switzerland is a strange thing. The conference should bring big news, with a roster of attendees—CEOs, legislators, presidents, and prime ministers—who all hang out together, reflecting on the world’s diverse issues.

And yet nothing works. Little real news, if any.

I’m not saying this from my chalet, which is within walking distance of the convention center and the site of the proposed action, but from my office in New York. It’s been years since I’ve visited this place and I have to say that I often crave the real hot chocolate they serve as opposed to the fake Swiss miss I grew up with.

But no more.

As you may remember, there was some big “news” in January 2020 when then-President Donald Trump was present and told CNBC that the nascent fears of a deadly coronavirus spreading around the world and a shutdown of major economies were all bullshit. In his words, “we have everything under control; everything will be fine”.

You know what happened next.

This year’s event, which ended on Friday, was clearly in keeping with the futility of the forum, its growing activity, and offered progressive solutions that most Americans don’t give a damn about. According to my sources present, the big shots there were yapping about an impending global recession, global warming, depopulation in China, war in Ukraine, wage cuts in places like Asia. Did I mention global warming?

Lots of speeches and speeches on these topics, but not many solutions other than the same old platitudes about forcing Americans to abandon gas guzzlers in favor of unaffordable electric cars or raising taxes to cure the world of hunger. For the sake of humor, Oliver Stone talked about his new documentary about the need to use nuclear power to prevent, you guessed it, climate change.

Eternal worries

It doesn’t take a rocket scientist to realize that these anxieties are neither unique nor truly existential—the chattering classes are tormented by them constantly and seemingly forever. The usual decision list has always been rather unrealistic.

That’s why there is no reason to fly from all places to Switzerland and pollute the atmosphere even more to indulge your paranoia about the coming end of humanity.

So why are people leaving? As a reporter, I went because I wanted to meet the CEO, chat with Jamie Dimon or Larry Fink about a story—until it occurred to me that I could do it here in New York.

I think CEOs are leaving to get away from their wives, get good press through showing virtue, and maybe go into some business. And for those who face difficulties in their homeland, perhaps change the narrative.

I saw David Solomon, the beleaguered CEO of Goldman Sachs, present and trying to explain to reporters his bank’s recent problems: slowdowns in transactions, rising costs due to the ill-fated foray into retail banking, and a big decline in profits.

Solomon had no intention of leaving his wife, but perhaps the more skeptical American media (mostly here at The Post) chronicled how he faced simmering revolt from some of his associates, angered by his management style. they say he was blunt, like it breaks the CEO mold — and how he cut jobs and bonuses in a bad year for deals.

So he went to Davos to show he had it all under control, sincerely explaining Goldman’s sharp drop in fourth-quarter earnings – again, as if his previous misdeeds weren’t enough.

How much did it change the story? Not really; My sources at the Manhattan firm say that people who hate Solomon still hate him.

Larry Fink, CEO of BlackRock, made the trip as always, which makes sense on paper: BlackRock is the world’s largest wealth manager and there were quite a few big clients in attendance. So did Much, hedge fund impresario Anthony Scaramucci, who runs SkyBridge Capital, a so-called fund of funds that invests in other hedge funds and is always on the lookout for clients.

But then again, you feel like it would be better for both of you to stay at home; hot chocolate in Davos isn’t good enough to convince any sovereign wealth fund to fork out billions of dollars as interest rates rise and markets become volatile.

And think about what’s happening to both of them here. Fink is getting infamy from conservatives for fanatically investing in ESG, which is perceived as left-wing capitalism designed to use BlackRock’s investments in the company to push them to reduce their carbon footprint, etc.

He’s not a fanatic. Far from it, based on the facts and what actually comes out of his mouth and what BlackRock actually does. However, his problem is not with his fellow travelers in the global elite, but with the new GOP majority in Congress and red state officials who have set their sights on making BlackRock the target of populist rage against ESG.

Mooch, for his part, is involved in the entire Sam Bankman-Fride mix-up, not as the target of prosecutors investigating the alleged scam, but because, like so many others, he thought the SBF was a white knight.

SBF has acquired a stake in SkyBridge and is trying to get out of this mess.

I don’t know how you can do it by going to Davos for hot chocolate.