This link from The Montreal Gazette about Alan Greenspan was forwarded to me. I'm just going to cherry-pick a couple of things rather than delve too much into it.
Call me lazeeee.
"Yikes. If that phrase sounds familiar, you might be recalling the words of wealthy Depression-era banker Andrew Mellon.
As Herbert Hoover’s treasury secretary, Mellon advised him to “liquidate labour, liquidate stocks, liquidate farmers, liquidate real estate ... it will purge the rottenness out of the system. People will work harder, live a more moral life. Values will be adjusted and enterprising people will pick up from less competent people.”
I always found it interesting that the final score about the Depression was FDR 1 Hoover 0. There is a body of economic theory that argues FDR's policies prolonged it. In any event, we'll never know if Mellon was (or could have been) right will we?
"...Above all, he said, managers must broaden their vision. Obsession with quarterly results and shareholder enrichment are not a good guide to creating a healthy company. Better to think more about the company’s health and its 10-year outlook. And all stakeholders must be considered, not just its owners: “It’s very difficult to have a healthy company in an unhealthy city.”
When I was a broker I did find it odd, if not amusing and odd, if not not, amusing add and obsessive how the investment world would judge a company on a quarterly basis. Talk about weeding vision out of the equation.
Still, not sure if I agree that companies don't look at the long-term. I think most do. It's just a matter of common sense to ensure the viability of the company. For example, if I open a business, I will try to make decisions that consider long-term issues since I plan to earn an income out of it; to say nothing of preferring to increase the value.
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