Karen,
I rather think that the events of the past months have shown us that capitalism can't work - just as socialism can't work (as noted by Keith many times). The sooner we return to a free market the better. What Eisenhower should have called the military/industrial/political complex has allowed corporations to become huge behind their defensive shields. These are erected by the politicians and bureaucracy against outside competition (import protection) and inside competition (patents, copyright, and 10,000 other laws whose objective is to stifle the market). As corporations get fat and lethargic in an unfree market, they have only one direction open to them - merge with or buy - other corporations. They are persuaded by the stock market that the economy is good and they need take no precautions. You may have noticed that corporations in trouble have frequently begun their slides after merging or buying. This includes Vivendi, which you mentioned. Vivendi bought the publishing giant Houghton Mifflen last year - and will be selling it this year. The games men play (and women). They continue their antics even as the economy begins to weaken. They do what every salesman does. They emphasize their good points "We're the largest in the world" even as they avoid inadequate performance (we are restructuring), lay-offs (we are cutting costs), and poor sales (it's the economy, folks). The "investors" have little interest in what they invest in. They are interested only in the increasing value of their holdings. They don't care about CEO compensation, or anything else (many don't care about income). They start yelling when their nest egg becomes an empty shell, but what did they expect? They were gambling and they lost. Did they really think that when their shares doubled, tripled, quadrupled, over the years, that this meant the corporation was quadrupling its sales? So, Ken is making a lot of money. So what! He's responsible for my being able to globe-trot in my retirement instead of spending a weekend in Vegas. Leave him alone - if we replace him, the fire might turn to ashes. Couple of things to remember. If $10,000 worth of shares soared to $100,000, the owner will regard them as being worth $100,000 - quite properly. If they then crash to $30,000, he is less likely to say I've made $20,000, than to cry because he has lost $70,000. There again, when someone sells shares, it's because someone else buys. If someone sells cheap, then someone else buys cheap. However, philosophical musings don't make up for that $70,000 "loss". The modern capitalist economy with its labyrinthian regulations, privileges, coercive restrictions, and generous subsidies, needs the fresh air of a competitive free market. The problem with these governmentally created giant monopoly corporations is they have lost a basic requirement for doing business. Like the banks, since governments surrounded them with regulations, they need no longer be prudent. Harry --------------------------------------------------------------------------------------------------- Karen wrote: >RE: earlier FW posts on corporate debt and corporate scandals with global >links > >Keith & Chris: > >Have you seen any early reports in the UK and/or EU regarding the Aug. >14th deadline for US CEOs to sign off on their own books?Vivendi Universal >announced an unexpectedly large loss and will sell $9.8 billion in assets. >(<http://www.nytimes.com/2002/08/15/business/media/15VIVE.html>http://www.nytimes.com/2002/08/15/business/media/15VIVE.html) > > > >PARIS, Aug. 14 ><http://www.nytimes.com/redirect/marketwatch/redirect.ctx?MW=http://custom.marketwatch.com/custom/nyt-com/html-companyprofile.asp&symb=V>Vivendi > >Universal announced an unexpectedly large loss today and indicated that >the company would begin unwinding the media empire assembled by its >recently ousted chief executive, Jean-Marie Messier, by selling the >American educational book publisher Houghton Mifflin, among other assets, >in a planned $9.8 billion sell-off. > >The company also indicated it would consider selling its stake in the >American satellite television company ><http://www.nytimes.com/redirect/marketwatch/redirect.ctx?MW=http://custom.marketwatch.com/custom/nyt-com/html-companyprofile.asp&symb=DISH>EchoStar > >Communications which, like Houghton Mifflin, Vivendi acquired only last year. > >&and wondered about it. > >Karen ****************************** Harry Pollard Henry George School of LA Box 655 Tujunga CA 91042 [EMAIL PROTECTED] Tel: (818) 352-4141 Fax: (818) 353-2242 *******************************
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