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This is why the public ownership model is bound to fail, and already the most successful companies are avoiding it as long as possible or entirely.
by ggg9990 9y ago
This is why the public ownership model is bound to fail, and already the most successful companies are avoiding it as long as possible or entirely.
- dpflan 9y agoDo you mean fail as in become socially and perhaps politically unacceptable ways of doing business?
- ggg9990 9y agoNo, I mean being outcompete by other businesses, in China and locally.
- lawnchair_larry 9y agoI think you have it backwards. CEOs can cook the books far easier if they are not a public company. Meanwhile, in China: https://www.reuters.com/article/us-china-anbang-regulation/china-seizes-control-of-anbang-insurance-as-chairman-prosecuted-idUSKCN1G7076 https://www.reuters.com/article/us-china-anbang-regulation/c... The reason that companies are not going public as quickly is because they aren’t making money, not because they are making too much money.
- imglorp 9y agoAlan Greenspan, on his way out, famously said > he had made a "mistake" in believing that banks in operating in their self-interest would be sufficient to protect their shareholders and the equity in their institutions. Greenspan said that he had found "a flaw in the model that I perceived is the critical functioning structure that defines how the world works." It's not a stretch to apply it to all C-levels at all public companies: they will absolutely manipulate the company to benefit themselves at the expense of the shareholder. https://www.cbsnews.com/news/greenspan-my-faith-in-banks-a-mistake/ https://www.cbsnews.com/news/greenspan-my-faith-in-banks-a-m...
- gowld 9y agoHe built his entire career, as a leader of USA financial policy, as a hardcore Randian Objectivist (he was a close friend of Ayn Rand herself, probably the most powerful Randian in the world), and then on the way out said "oops, I was wrong"?
- cromulent 9y agoYes, he did. "You found that your view of the world, your ideology, was not right, it was not working?" Greenspan agreed: "That's precisely the reason I was shocked because I'd been going for 40 years or so with considerable evidence that it was working exceptionally well."
- JoeAltmaier 9y agoThis is my sister's observation after 20 years in manufacturing. All her experiences at the executive level were of folks manipulating the company to get their bonuses regardless of the damage they did. They'd simply move on when a company failed. She got sick of it all after 20 years, and now runs a chocolate shop in semi-retirement.
- rbanffy 9y ago> They'd simply move on when a company failed. And often the failing company would even pay for the outplacement consultants.
- dsacco 9y ago
- lev99 9y agoThe public ownership model is awesome at raising capital.
- rbanffy 9y agoSo are Ponzi schemes.
- harryh 9y agoMe: Looks back at the incredibly successful 400 year history of public companies. You: Notes a small amount of manipulation by CEOs and says public ownership is doomed. thinking face emoji