Lumuhuku

Arbitary Obsessionist's Blog : Ambition is redundant. In life, mission is everything.

Congratulations to every American!! You just became a shareholder, without even being asked for!

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It is said that equities (stock markets) in the long run do give much better returns than other asset classes. So is it not good to have a lot of shareholders? Pretty good I say. But it is good only if everyone becomes a shareholder by his or her own decision.

Sooner or later, this big $700 Billion Bailout is going to be a reality. Even if it is not passed again, still a lot of taxpayers money has already been invested in the companies on verge of collapse. So is it not a case of “people being forced to become the shareholders of dying companies?”

Today, every tax paying American has a become shareholder. Whether he likes it or not.

Now if the taxpayers are saving the financial system by buying up risky organizations, they should also get the share in some of the upside at the companies thus bailed out.

Now just think about the following and you will see how complicated things will become, very soon…

    1. Did you want to have share ownership of such temporary things? Will these survive even after the bailout?
    2. How will you resolve the conflict between wanting the banks in which you invest to make a lot of money and not wanting them to charge you $200 or $500 for turning in your credit card payment a day late? 😉
    3. Does this mean that all Americans get to go to shareholder meetings?

So, lets see if the house of representatives pass the bill or not. Even if they don’t, the process of damaging the US economy was started 7 years back.

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