STOCKS, CAN’T LIVE WITHOUT THEM
That is one of our biggest problems now.
The Fed (Federal Reserve) is murdering savers by holding interest rates down. So, where can those retirees get enough money to live? Junk Bonds? Really!
The Fed is forcing people into the Stock Market.
As you know there are Private Corporations (Corps) and Public Corps. The Public Corps trade their stock on the Stock Markets, such as the NYSE. Private Corps do not trade on those exchanges/markets.
In the 80s, the Reagan Administration put through a law that allowed CEOs to be paid in Publicly Traded Stock. Until then, it was illegal to give Stock Options to CEOS or Presidents of Public Corporations.
That law incentivized the CEO to raise the price of the stock as high as possible which was good for the CEO and the stock holders.
AND VERY BAD FOR THE REST OF US.
CEOs started looking for profits everywhere to the long term detriment of the Corps and the Economy. They fired people to reduce staff, sent factories and jobs overseas, had tariffs lowered, lowered wages where possible, sent income overseas to sham subsidiaries untaxed, etc.
That law lead to the CORRUPTION OF PUBLICLY TRADED CEOs.
If the CEO does what is right for the Corp and the Economy in the long run, the CEO will be replaced by the stock holders with another CEO will go for short term profits and a higher stock price.
Traded Stock Corps are even taking on new debt to buy back their stock to make the Earnings/Share of stock higher. This gives the ILLUSION of a better Corp. But, it is just a SCAM. The Public Corp is even worse due to the new debt.
Until that law is changed back to prohibit the payment of CEOs in stock options, WE and the Economy are going from bad to worse.
Let the CEOs be paid in dollars, pay their taxes on those dollars at the rate we pay on our wages and then buy stock if they want to just like the rest of us.
Maybe then the CEO will think of the Public Corp long term and not just of some sham stock price.
By the way, what is the real value of a share of stock? Whatever a greater fool will pay! Just don’t run out of fools!
That is one of our biggest problems now.
The Fed (Federal Reserve) is murdering savers by holding interest rates down. So, where can those retirees get enough money to live? Junk Bonds? Really!
The Fed is forcing people into the Stock Market.
As you know there are Private Corporations (Corps) and Public Corps. The Public Corps trade their stock on the Stock Markets, such as the NYSE. Private Corps do not trade on those exchanges/markets.
In the 80s, the Reagan Administration put through a law that allowed CEOs to be paid in Publicly Traded Stock. Until then, it was illegal to give Stock Options to CEOS or Presidents of Public Corporations.
That law incentivized the CEO to raise the price of the stock as high as possible which was good for the CEO and the stock holders.
AND VERY BAD FOR THE REST OF US.
CEOs started looking for profits everywhere to the long term detriment of the Corps and the Economy. They fired people to reduce staff, sent factories and jobs overseas, had tariffs lowered, lowered wages where possible, sent income overseas to sham subsidiaries untaxed, etc.
That law lead to the CORRUPTION OF PUBLICLY TRADED CEOs.
If the CEO does what is right for the Corp and the Economy in the long run, the CEO will be replaced by the stock holders with another CEO will go for short term profits and a higher stock price.
Traded Stock Corps are even taking on new debt to buy back their stock to make the Earnings/Share of stock higher. This gives the ILLUSION of a better Corp. But, it is just a SCAM. The Public Corp is even worse due to the new debt.
Until that law is changed back to prohibit the payment of CEOs in stock options, WE and the Economy are going from bad to worse.
Let the CEOs be paid in dollars, pay their taxes on those dollars at the rate we pay on our wages and then buy stock if they want to just like the rest of us.
Maybe then the CEO will think of the Public Corp long term and not just of some sham stock price.
By the way, what is the real value of a share of stock? Whatever a greater fool will pay! Just don’t run out of fools!