This guy Gets It. Problems I see with current business: * Finance. A company that makes real goods or services is lucky to get a 5% annual return on investment. Play games with international finance and you can get 200%. Until, of course, the whole thing collapses on your head. Solution: Glass–Steagall. Obama could simply issue an executive order denying FDIC insurance coverage to any institution that does investment banking. * Stock market. The only way to make money on a stock is to sell it. Therefore, the market is strictly concerned with the stock price, with no concern for the future. Solution: Bring back the concept of dividends. Pay dividends from pre-tax income (side effect: no profit, no dividends. And you cant pay dividends with accounting tricks; folks are going to cash the checks.) Stockholders wont stand for things like huge CEO salaries if its coming directly out of their pockets.
Posted on: Sat, 28 Jun 2014 03:48:10 +0000