Would you be buying Goldman Sachs stock right now because you believe its price won’t go down considerably for the next few years since the government will do whatever it can to make the company prosper, or, would you rather buy something else in some other country?
Not a bad idea. Does this have anything to do with this? http://www.businessinsider.com/chelsea-clinton-engaged-2009-11
Big business and government now literally in bed with each other.
Hahaha.
If were talking about what I’d do for my own personal benefit and income, I’d probably buy stock in Goldman Sachs. Now that the government has given so, so much of its constituents’ money to the company, they literally cannot let them fail or all hell would break loose. But when it comes to principle, I would buy something else simply because of the fact that I had to bail them out. And, overall, I’d definitely go on principle. I’ll much rather help out one of the companies that didn’t accept bailout money, just like I purposefully avoid going to Wal-Mart at all costs (no pun intended).
Just because they can’t let them fail doesn’t mean their stock price is going to go up or even stay steady.
what the heck is wrong with WAL-MArt??? to me they are the best friend of poor ( and not so poor) folk, unlike tha guvment.. other than accepting money pushed in their face by communities that want a store… but I know it is popular to bash them for every malady know to man… bet you all wish you bought their stock 10 years ago
I thought Wal Mart is the good guys
Walmart makes 3 dollars for every 100 you spend at the store. A WoW subscription costs more than this…
So Brian - I just have to ask?? what principal keeps you from entering wally world??
Those poor small business owners who can’t keep up with competition
Take a look
I wouldn’t buy GS for the same reason I wouldn’t buy US treasuries… both organizations are (in real terms) bankrupt and propped up only by the blood-money spoils of the US-inflationary empire. Any wise investor must incorporate political reality into his investment decisions but it is my policy to avoid explicitly political investments. Unless you are one of the insiders and you know what’s going to happen, just stay away. A person can make money when TPTB have painted themselves into a corner (for example, buying commodities, especially gold, because TPTB have left no other option for themselves but to print money and lots of it) but this is different than freely participating in the political business machine. It’s too dangerous for those who are not in the loop. Anyone who doesn’t have a relative on the board of GS should stay away.
Clayton -
Thank you. That is the exact link I was going to post. Aside from the fact that they receive government subsidies, I don’t like to shop at stores that aren’t specialty stores. I like stores that sell one ‘genre’ of items, not everything in the world. Personal choice.
Any company coddled by government has an unusual tendency towards performing very badly as a business. See the American automobile industry.
As a matter of fact, while playing Transport Tycoon, I tried to grab every subsidy offered by every local town. I figured I’ll quickly start up a business in the town offering the subsidy, run it while I still have it, get the supernormal profits, and then sell all the assets when the subsidy is withdrawn. I did make a lot of money.
Problem was that I was running inefficient, third-rate services only because I could do it for less money and get more for it. That hit my company ratings very hard. On top of which, the computer AI competitors did not bother with subsidised services since I had grabbed all of them, and instead focused on investing big sums of money on more large scale investments run on full capacity. So those guys were running long truckloads of steel over long distances in short time, and getting some fat cash for it.
So while I had an advantage over them for two years, those competitors decimated me in the third and left me far behind in all future years.
An ironic thing: Capitalism punishes greed. 