tag:blogger.com,1999:blog-9040807413744183436.post4133524850616286896..comments2023-10-23T00:53:05.301-04:00Comments on Heretic: Power and privilege; death of the common stock. (rant)Stan Bleszynskihttp://www.blogger.com/profile/03922719716458272303noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-9040807413744183436.post-19588930559729310052008-11-03T20:40:00.000-05:002008-11-03T20:40:00.000-05:00I doubt if it would have had any effect. I suspec...I doubt if it would have had any effect. I suspect that the problem is more fundamental: I suspect that any scheme with tax deferral or without will not work until the current "boomers" generation of managers and business "leaders" retire. <BR/><BR/>You are dealing with the inept generation of people born from late 1940-ties until early 50-ties, who believed that houses would never fall, that stock valuation of 100 (P/E) was good and real and that one can generate wealth by firing engineers, scientists and other creative "nuissance" people, ship their companies to China and make money selling financial contracts between institutions. <BR/><BR/>This is a generation of people who invented ISO9000 and believed in the virtue of following procedures but not doing anything substantial, never rewarding creativity and competing like dogs everyone against everyone.<BR/><BR/>You will see, once they are gone, everything will start working again even under the current rules!Stan Bleszynskihttps://www.blogger.com/profile/03922719716458272303noreply@blogger.comtag:blogger.com,1999:blog-9040807413744183436.post-71018053938566170432008-10-31T15:10:00.000-04:002008-10-31T15:10:00.000-04:00Given the tax preferences for pensions and 401k(s)...Given the tax preferences for pensions and 401k(s), mutual funds and other intermediaries own most of the stock. Most people are not allowed to own individual stocks through their 401(k)s.<BR/><BR/>Want a real stock market? A good first start would be to abolish all such tax deferrals. Then, fund Social Security through a consumption tax. That way, you get an implicit deferral that is relevant even to minimum wage workers, with complete flexibility on where to invest: stocks, bonds, land, dump trucks, partnerships, tools, etc.Carl M.https://www.blogger.com/profile/01278814334603631598noreply@blogger.com