[GTALUG] Are you on the watch list?

[Russell Reiter]

On Jul 16, 2016 8:14 PM, "Alvin Starr" <alvin at netvel.net> wrote:
>
> On 07/16/2016 07:22 PM, Russell Reiter via talk wrote:
>>
>> On Jul 16, 2016 4:54 PM, "James Knott via talk" <talk at gtalug.org> wrote:
>> >
>> > On 07/16/2016 04:42 PM, Russell Reiter via talk wrote:
>> > >
>> > > > The wallstreet guys came up with a method to manage risk and it
>> > > worked well till everybody used it then all the risk was back but in
a
>> > > slightly different form.
>> > >
>> > > Could you clarify that? I think I have a different opinion about wall
>> > > street risk management than you do.
>> > >
>> > > Sub prime mortgages decimated Fannie May & Freddy Mac. Enron wiped
out
>> > > pensions and Bernie Madoff got 150 years in the slammer for his Ponzi
>> > > scheme, pretty much all within the last decade.
>> > >
>> >
>> >
>> > A big part of the problem is business has been claiming they need
>> > deregulation to grow. Well, that,
>>
>> I recall it more as threats to relocate to jurisdictions with lesser
regulations, which they did anyway after getting major concessions from
unions and government regulators.
>
>
> Rule #1 is corporation executives are responsible to increase shareholder
value.

The golden rule is that they with the gold make the rules.

> If you do that by killing millions of people your obligation is to kill
them and increase the profits.
> There is no obligation to deliver a safe or quality product or service.

There is an implied warranty of serviceability which is attached to every
product in the market. Shoddy and inferior products increase liabilities.

It took real balls for executives to take corporate jets to the meetings
where they requested their corporate welfare payments. That was a
monumental disservice to Enron and other employees who lost pensions.

> The guy who bought the low margin low volume drugs and increased the
prices by a few thousand times did the right thing.
> He is in jail not for breaking some other unrelated rules.

I'm not sure I understand what you are saying here. He's in jail for not
breaking unrelated rules?

>
> Rule #2 is do whatever it takes to increase  your personal compensation.
>
> With those 2 simple rules most all of the business events of the last 50
or so years make sense.

There is a global economic crisis unfolding. Part of the problem is the
number of untrained investors and unscrupulous advisors. The other part is
that there are two many professionals who don't work in what they trained
for but rather engage in property and other speculations.

The real fact is that investing is an art and there are no simple rules.
The market has always been too volatile for such simplicities.

I have a friend, a lawyer and a smart guy. He took a year off from his
practice to work in the FOREX market. At the end of it he made $5.000.00
less than the previous year in a legal practice.

>
>
>
>
>
> -- Alvin Starr || voice: (905)513-7688 Netvel Inc. || Cell: (416)806-0133
alvin at netvel.net ||

Sent from mobile.
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