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    Saturday, January 31, 2009

    Not a time for profits?

    So, President Obama thinks now is "not the time for profits." The O admin also decided that Citibank's previously planned purchase of a new $50M corporate jet (retiring two older jets) was not in the best interest of...someone.

    A couple of questions on these:
    1. How many workers did it take to design, build, market, sale, and deliver that $50M aircraft? How many more $50M planes are not being delivered because recipients of the taxpayer's money are not allowed to either spend as they please, or carry through with previously (board-approved, most likely) plans? How many additional people will lose their jobs because of government meddling in public companies? Of course, the government didn't ask these questions (or didn't care) when they passed ridiculous laws like Sarbanes-Oxley, either, so why should they now, when WE MUST DO SOMETHING!
    2. Since these banks, etc, are publicly traded companies (in most cases), shouldn't their boards and shareholders be making these kinds of decisions and not (after the fact), the government?
    3. If now is not the time for profits, when is the time?
    4. Is this part of an Obama signal to all businesses, that if you make a profit, BEWARE! the government intends to get its hands on it somehow?
    As a stockowner, I happen to like profits. It makes the stock prices in my portfolio go up. As an employee of a public company, I like profits, it means we can invest in new technologies and products, and we can start projects to bring those things to market, we can hire more people to make them happen, and we can reward those people who excel with nice bonuses and pay raises.

    So, Barack Obama, I think now IS the time to make profits, but, I am a filthy, nasty capitalist pig.


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