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The U.S. economy in one Whitman word?
Sun Jan 25 13:20:40 2004
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http://www.syracuse.com/search/index.ssf?/base/business-4/1074850842322970.xml?syrbubiz
Financier full of wit and opinions
SU benefactor, Martin J. Whitman, counsels management students.
January 23, 2004

By Bob Niedt
Staff writer

Investor Martin J. Whitman first came to Syracuse University just after
World War II, under the G.I. Bill of Rights, a federal program conceived
when the country was running deficits that Whitman says was a good use
of taxpayer money.

Whitman, Class of '49 and nearly 80, was back in Syracuse on Thursday,
in a building with his name on it and in an economy newly stung with
word of extensive layoffs at Kodak and a deepening federal deficit.

The U.S. economy in one Whitman word?

"Sucks," said Whitman, known as a straight shooter.

So what's the first step to right it?

"The biggest thing we have to do about it is get rid of the
Republicans," said Whitman. "It's just a disaster. I'm more a
use-of-proceeds person than I am a deficit person.

"Deficits can be very, very constructive if the funds so raised are used
in a productive manner, such as what brought me to Syracuse in the first
place: the G.I. Bill of Rights. But when you piss the money away in
useless wars and ill-conceived tax cuts, you're headed toward becoming a
banana republic.

"The people there are just interested in trying to make the economy look
good for the next election, but they're not interested in the Draconian
long-term consequences."

Whitman is the first to admit he's a pessimist. That's how he runs
investment firms that made him very, very wealthy - wealthy enough to be
one of Syracuse University's biggest contributors: millions and millions
of dollars - and why there's the Martin J. Whitman School of Management
at SU.

"I'm embarrassed by it," said Whitman, who seemed humbled.

But he's also self-deprecating, calling himself "a money-grubber from
the investment business."

He occasionally visits students in the management school. He

guest-lectures there in May, the same course he teaches at Yale.

His humor and directness wins fans among the students.

He's got other work, too.

Whitman is chairman of the board and co-chief investment officer of
Third Avenue Management LLC, the investment adviser to the Third Avenue
Funds and to private and institutional clients. Whitman manages the
Third Avenue Value Fund.

Third Avenue Value Fund controls much of the debt of discount retailer
Kmart.

"Obviously, it looks pretty good right now, but the jury is still out,"
said Whitman. "It's very profitable right now, but at the end of the
day, we need to create more traffic."

Whitman says Kmart's niche will be with African-American and Hispanic
shoppers who favor it and locating in more urban areas while flying
under Wal-Mart and Target' radar.

"It's pretty hard to think that there's only room for Wal-Mart and
Target," said Whitman.


© 2004 The Post-Standard. Used with permission

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