tag:blogger.com,1999:blog-5027562849054565148.post279829435617378017..comments2023-08-05T09:08:01.891-04:00Comments on Desperately Seeking Sanity: Proof of EntropyErik A. Princehttp://www.blogger.com/profile/07026166272308791091noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5027562849054565148.post-90599466420502381902009-10-29T09:13:03.555-04:002009-10-29T09:13:03.555-04:00This was from an email response:
I would like to ...This was from an email response:<br /><br />I would like to apologize for my brother, the communist. I can assure all that he was not raised that way, and can only hope that this is a passing affectation. Since Erik has steadfastly refused to publish my three previous blog rebuttals, and therefore I must assume other's conflicting responses, I'll elaborate on a few of the most obvious errors in his latest thesis.<br /><br />Wall Street does not punish companies that are "stable and profitable". Do I say this because of something I heard on the news? No, I say this because I own a few companies that are "stable and profitable". For example Dominion Resources (symbol D on NYSE) has shown consistent growth over the years in spite of being in a sector that is very much over-regulated. It also produces a sweet dividend exceeding the insulting and absurd 0.5% interest rate that my bank offers on savings accounts. Well managed, responsible companies are, and have always been a hedge against market volatility, and rewarded under our capitalist system.<br /><br />Citing a few specific examples: The Eron collapse had nothing to do with "Wall Street", but was the direct result of accounting fraud plain and simple. The author seems to imply that crime is a result of greed particular to the United States and therefore capitalism must be bad, when in fact accounting fraud is as old as the oldest profession. Then there are the "Mortgage crises". Clearly a result of people buying houses they could not afford with the blessing of congress and mortgage brokers more than happy to write the loans. A "Wall Street" problem? No, this had it's roots on Main Street and in a congress that sponsored the pseudo-corporations Fanie Mae and Fredie Mac. These entities buy mortgages on the secondary market, and sell them as mortgage-backed securities to investors. This is an important point. The government has essentially been selling their own dubious investment instruments to Wall Street. The "Mortgage crises" was a result of government intervention, mis-management and social engineering, not free enterprise or capitalism.Scottnoreply@blogger.comtag:blogger.com,1999:blog-5027562849054565148.post-86544143307622780832009-10-28T22:25:56.384-04:002009-10-28T22:25:56.384-04:00I think back to the movie "Wall Street" ...I think back to the movie "Wall Street" and the statement Greed is Good. <br />I can see that wanting more is a motivator. But I have to agree with you that getting more has to be done in a way that is sustainable. <br />I see the same kind of cavalier attitude in dealing with the environment. I remember having a guest over to my house one time during a particularly dry summer. I told them, when they were about to visit the bathroom to not flush if all was just liquid. I was told no way! NO WAY! It was more important that she was comfortable. It didn't matter that we were under such strict water restrictions that rationing was on the horizon. <br />I am not one to fly a "The Sky is Falling' flag but we have to be cognizant of consequences. Financial, physical, personal. Most of us are going to be around for more than the next 3 months, and perhaps we can learn to act like it. <br />This isn't about who is right and who is wrong. It is about coming together to find a better way. <br />Keep writing, Erik. You have a keen ability to rise above the fray and offer a new perspective.elliehttps://www.blogger.com/profile/14289981268032557941noreply@blogger.com