Saturday, November 14, 2009

Summary

Summary
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What we discussed are all inter-related. The change in one affects the other aspect of the Economy.
For e.g. Instead of paying a CEO $75Million a year as pay and compensation, if the pay is $2Million then the remaining $74 Million can be used to pay 20 employees with $100,000 for 37 years which is life time employment for 20 individuals.
Similarly instead of paying the CEO another $75Million the next year as pay and compensation, if the pay is $2Million then the remaining $74 Million can be used to pay the 20 employees with $100,000 for 37 years as pension which is life time pension for 20 individuals. This is economic stability and will not CAUSE RECESSION and individuals can happily retire at 60 years!

Similarly if a company is not rated on its quarterly profit but on its yearly profit and based on the safety reserve cash to survive/pay employees for the next 3 to 5 years then there will not be huge fluctuation in the stock worthiness of a company.
If purchasing and selling stocks on same day (single day trade) is stopped and if a retention period of 3 months to 6 months is mandated then there will not be artificial swings and collapse of companies because of happenings in Stock Market (Wall Street)


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-Suresh

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