Big Think

Mike Edwards commented on Re: What is your position on foreign direct investment? on February 12, 2008, 5:39 PM

Warrior13 is that spam? or even related to the question/topic?

Mike Edwards commented on Re: Has capitalism run amok? on January 16, 2008, 10:52 PM

Jkmosher mentioned that capitalism is based on balance, but it may be more accurate to say that markets are self-correcting. They are rarely static nor in balance. They constantly move towards equilibrium, but that point is constantly moving. In mentioning incentive problems no one brought up that there is a fundamental difference between the short term focus of the typical investor compared to long term focus of that a corporation needs for long term profitability and survival. The boards of directors are acting in their best interest and in the best interest of the stake holders by focusing on short term gains and returns, since this is what the stock price/returns are based on. Perhaps a fundamental change in how we invest is what is needed. IE be more like Warren Buffet and less like a lemming.