LOL.

Was there ever really a golden age of allocative efficiency?

Isn’t the goal of most private equity strategies to eventually dump their stock, to cash out, even if it means paying big-board fees? (Did I say “dump” – I meant, lovingly “share”, pun intended).

You ignore the role of price discovery. Apple may not have issued since forever, but they sure like the currency of a highly valued stock, even more so when everyone can see just how big it is.

I’ve written further about this, please see: http://bit.ly/gG7npz.

Thanks.

No kidding Felix? So Chuck actually said that….recently? Wow. Well, it’s surely a treasure for some of us.

It’s been my experience that the buyer gets to pick the name of the new firm.

Well I can sleep better now knowing that the cradle of capitalism was up again today on little volume.

MIA

http://en.wikipedia.org/wiki/Dividend_ta x#United_States

Maybe you could offer your opinion on the following sometime: If we’re shifting from a model of broad shareholder ownership, how much of this is attributable to loss of confidence in gatekeepers (rating agencies, auditors, analysts, etc.)? What different means of monitoring management will arise from the new forms of ownership? Will the old institutional gatekeepers evolve and adapt to the new ownserhip arrangements, or will they be replaced by something entirely new–and if so, what?

Just a suggestion….

WALL STREET’S DEAD END AND THE TFD GLOBAL GOVERNANCE SYSTEM
February 14, 2011
Felix Salman, the finance blogger at Reuters, argues in the New York Times of February 14, 2011 that Wall Street is heading towards a dead end. Since 1997, the peak year with its 7000 public companies, the listing has steadily gone down, so that presently only 4000 are listed. Those that are listed do not reflect the vibrancy in the economic sector where innovative companies such as Apple find their financing from private and, generally, large institutions. Thus, American style capitalism of shareholder companies that are part of a regulated financial system is disappearing.
One of the effects of this decline is the increased and unregulated power of large financial institutions and super rich elites who determine the direction of the various markets in the global economy. Their decisions do not foremost allocate capital based upon the need of the real economies of nations and regions, but upon their outsized desire of making money on their money by betting on those markets. Given the lack of an effective global regulatory structure, much of this “investing” is not monitored, let alone regulated. While nations battle with huge sovereign debts and have to resort to drastic budget cuts, huge global financial resources with its increasing financial concentration are directed towards non-productive users.
Should nations and civil society try to reform the present financial system and make public exchanges more effective in allocating capital for the real needs of people and planet? Should developing countries continue to set up their own stock exchanges or opt for an overhaul of the global financial system? How should the international community deal with a connected global economy that is so well described in Connected by Daniel Altman who analyzed the global economy by watching it for 24 hours on June 15, 2005 and who, several years later in Outrageous Fortunes , has been looking for the “deep factors” that would determine its future?
The Tierra Solution gives an answer to those questions. Its TFD global governance system would utilize a carbon-based international monetary system to combat the climate crisis by advancing low carbon and climate-resilient development. It would monitor and regulate all the various sources of financing, be they stock exchanges, private funds, sovereign wealth funds, hedge funds etc., and thus create a level playing field in the financial and monetary sectors. By being able to monitor, regulate, and engage in credit and money creation its Global Central Bank would have the authority to direct the world’s existing capital and the new credit and liquidity requirements for climate and development policies, programs and projects towards productive uses in the real economies of its member nations. Though this high level of collaboration of a global monetary union may seem unattainable in the next couple of years, the vision of and reason for such global governance system may be precipitated during this decade by an ever increasing awareness of the ineffectiveness of the present monetary and financial systems and the ascendancy of financial black markets and by the global serious impoverishments in food, health and housing of a looming climate catastrophe.