Why I lost my job, and probably yours too

I lost my job back in January and this post by Mark Cuban really hit home with me.  I’ve seen several companies fail because they were pushed too hard, milked for everything the speculator investors can get, and then dumped when things inevitably go wrong.

Mark Cuban writes:

If you want to know where I think we have a problem, Im happy to share. Our government doesn’t know the difference between an investor and a speculator or trader.  If we did, we would understand that we should tax the trader/speculator more heavily than the investor.

The investor allows entrepreneurs access to capital and allows them to work with it and build businesses, which in turn build employment and do great things for the economy. The trader/speculator pushes companies to make more money now rather than invest in doing the right thing for the company. The trader/speculator dominates the stock market today, which in turn puts pressure on public company CEOs to cut jobs and play games with their financials in order to give the appearance of stability in a far from stable market. The investor understands the bigger picture and is ok if profits fall for several quarters or even several years as long as the company will maximize its return over the long run.



~ by spacemanalpha on August 23, 2009.

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