We often wonder if there is a “virus” on the loose that infects people’s brains, making them want to admit unsavory characters into the US such as terrorists, mass-murdering gangs like the MS-13, and the rest of the world without vetting.
The virus seems to have infected people around the world and it’s becoming more prevalent with each passing day. It has a propensity to infect politicians, media personalities, uninformed college students, and those who make a living in front of a camera, such as porn actresses. Silicon Valley social media firms have become afflicted by this virus as well.
Now comes Senator Elizabeth Warren with a plan to end “evil capitalism” as we know it. Is she infected? She is clearly getting ready for a run at the White House for the next presidential election.
Below is an excerpt from an intriguing article written by Ken Grant, Founder of General Risk Advisors, LLC:
Bad News: Liz Warren to Take Over Market; Good News: Trump Wants to Spread Out the Damage
I am happy to report a couple of small steps towards the narrowing of the chasm that separates right from left in this increasingly divided nation; one which, if taken to extremes, threatens to destroy what has been one hell of a ride since WWII at any rate.
First, it would appear that contrary to widely, er, socialized perception, Senator Elizabeth Warren (D-MA) does not wish to destroy capitalism as we find it. In fact, she wants to help, and, seeing as how she’s a Senator and all, she has actually introduced a bill to strengthen its foundation.
Specifically, the blood-chillingly named Accountable Capitalism Act (what are the chances that she did NOT choose the acronym to match that of Obamacare? Answer: slim) would require domestic companies with $1B in revenues to apply for a national charter, presumably controlled by enlightened Washingtonian political insiders.
Under the proposed regulatory regime, companies would be impelled to operate in such a way as to maximize benefits to ALL stakeholders – including (one can assume) employees, regulators, customers, community, creditors, and maybe even competitors (I mean, after all, don’t your competitors have a significant stake in your fortunes?).
Presumably, shareholders are not to be excluded from this warm embrace (because seriously, don’t shareholders need love like everybody else?), but not under prevailing terms of monogamy.
In fact, if I properly understand the provisions of The Act, being overly attentive to the actual owners of your enterprise can land you in hot water with Sen. Liz: a place where (trust me) you do not want to be.
The bill also proscribes that at least 40% of Board Seats of chartered companies must be assigned to employees, and prohibits top executives from selling shares, whether purchased on the open market or acquired as part of a compensation package, until, well, until forever.
What, in heavens name, could possibly go wrong?
Well, for one thing, investors in enterprises who must, as a price of doing business, de-emphasize shareholder interests might not be willing to pay as much for the privilege of ownership – particularly when one considers that there’s a whole wide world – full of companies that are willing to place their objectives at the highest level of the priority chain.
In addition, Corporate Research and Development efforts that might’ve otherwise driven whole new innovation/monetization cycles might not do enough for employees or the community to meet the newly engineered underwriting standards. Management teams, confused and disincentivized by the Act, might make suboptimal decisions.
Yup, on the whole, I’m forced to conclude that the passage of The Act would be a market short.
Entire article: onzerohedge.com
Our view: To be fair, she has a plan that should get some backing from the American public.
Sen. Elizabeth Warren wants to ban members of Congress and the White House staff from owning individual stocks and replace them with government-managed investment accounts.
Those are just two of the dozens of proposals comprising the Massachusetts Democrat’s sweeping new legislative package, the Anti-Corruption and Public Integrity Act, which she unveiled Tuesday. Warren said the bill is designed to “eliminate the influence of money in federal government.”
Warren’s bill would impose a lifetime ban on lobbying for presidents and federal lawmakers, while also barring U.S. lobbyists from using foreign cash to influence American policy. It would slap new taxes on “excessive lobbying” of more than $500,000 a year, and it would bind Supreme Court justices to a code of conduct recognized by other federal judges.
We didn’t know she could do the impossible. If she succeeds, her nickname should be changed from Pocahontas to Wonder Woman!
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