Thursday, August 7, 2014

REPOST: Stossel on Vanderbilt's GREED


  1. I agree with this video. It is important to continue to be innovative and want more. It's not a matter of greed its a matter of "giving the people what they want"

  2. The question at hand is does this management team have a better plan that Larry-the-liquidator to increase shareholder value and wealth?

    The text notes that you create wealth when you move an asset from a lower to a higher valued use. Did anyone hear the President of the cable and wire company say what their plans were? How they were going to deploy the assets and capital they had to increase shareholder value? I didn't hear anything about that.

    Larry-the-liquidator isn't offering much either except to say that if you take his price for the shares - you have some cash - and he'll make a return on his investment of buying shareholders out by selling off pieces or bundled pieces of the company. His share offering doesn't mean that he's creating wealth - just shifting money around.

    Who is right here? Neither are making a good case for shareholders. One is appealing to their sense of community spirit (but no plan for how they will win) and the other is basically scaring them to sell their share to him.

    Additionally, Larry's plan would mean that all workers would most likely lose their jobs - they would lose and the communities they live in would lose as well in the context of the local economy.

    It would have been better to hear more facts and plans than the emotional appeals we saw in the clips.