[Milsurplus] Yalta Conference

[J. Forster]

Peter,

We basically agree but the trend to short term thinking was driven by the
tax code screwing. Long term CGs used to be a Tax Preference item. Years
ago (20-30) companies thought much longer term than now.

Also, selling out seed corn (like technology and factories) has made
things worse.

Anyway, they're both very destructive of the US industrial base.

-John

============


>   Not to diminish it's importance but I believe the lack of inflation
> indexing in the tax code is not nearly as important as the short term
> thinking of the investment community.  It is not just the Wall Street
> guys either, it is every investor who is in it for the short term play.
> It used to be, go invest in blue chip issues and gain over time, but now
> look at the millisecond timed trading.
>
> How about investing in new plant to build business over time?  I am in a
> company right now which did that and took a bath with their stock price
> with all sorts of analysts complaining about how much money was being
> spent.  It's like the expectation is that just by existing a company
> will make them money.
>
> The Japanese (and now more and more the Chinese) are looking out decades
> into the future and planning.  We are stuck arguing about quarterly
> numbers.  Who do you think will be better off in 20, 30, 40 years?
>
>
> On 11/6/2010 10:12 PM, J. Forster wrote:
>> I basically agree, but it's at least partly driven by Wall Street
>> vultures
>> and the tax code.
>>
>> The tax code favors short term thinking because Capital Gains basis is
>> not
>> indexed for inflation. This discourages long term thinking.
>>
>> Given this, Wall Street prefers the quick buck... waiting 5 years or
>> more
>> is not an option. They are barely willing to wait 'till the next
>> quarter.
>> I've watched small companies fill their loading docks with empty chassis
>> just to show quarter over quarter growth.
>>
>> How long did Sony work on VCRs before they made it big? 10 years? 20? It
>> does not happen in the US.
>>
>> FWIW,
>>
>> -John
>>
>> =================
>>
>>
>>
>>> I'm probably one of the toughest domestic hard cases there is, only own
>>> domestic vehicles more than 20 years old, ham rigs from Collins,
>>> VHF-FM
>>> domestic surplus with GLB synthesizers, you get the drift.  But, it
>>> goes
>>> back to things like this.  Back in the 50s, Philco stubbed their toe on
>>> their "Apple" color picture tube, wonderful idea, never were able to
>>> manufacture it.  Sony spent the development money and produced their
>>> Trinitron, same principles.  No domestic equivalent ever was made.  And
>>> it
>>> went on like that.  Domestic manufacturers were so focused on the
>>> quarterly bottom line, that they lost the ability to compete with
>>> constantly improving foreign products.  First Japan, then Korea, now
>>> China.  Cheap labor and cheap money always wins.
>>>
>>> YMMV,
>>> George
>>> W5VPQ
>>>
>>> ---------- Original Message ----------
>>> From: sdaitch at kuw.ibb.gov
>>> To: jfor at quik.com
>>> Cc: armyradios at yahoogroups.com, milsurplus at mailman.qth.net
>>> Subject: Re: [Milsurplus] Yalta Conference
>>> Date: Sat, 06 Nov 2010 22:29:23 +0300
>>>
>>> I'd bet the $10 million per day is probably a
>>> far more realistic cost estimate, but that is
>>> 5% of the originally touted number.
>>>
>>> I suppose we could all stop buying anything
>>> made in China, or Japan, or perhaps in the
>>> upcoming years, anything made in India, but
>>> we won't, will we?  No matter what laws,
>>> agreements and trade treaties we have, no
>>> manufacturer is forced to move manufacturing
>>> operations off-shore.  Having the ability to
>>> do so is not the same as being forced to do
>>> so.
>>>
>>> 73
>>> SHeldon
>>>
>>> ____________________________________________________________
>>> Globe Life Insurance
>>> $1* Buys $50,000 Life Insurance. Adults or Children. No Medical Exam.
>>> http://thirdpartyoffers.juno.com/TGL3131/4cd608b9cd6b9173b27st01duc
>>>
>>>
>>
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