To: Paul Fiondella who wrote (77643 ) 4/3/1999 3:44:00 PM From: billwot Read Replies (1) | Respond to
Paul-Re: Thus the owner of the productive goods, say Bill Gates, remain in control of the productive asset, Microsoft, even during the most severe depression whereas the owners of shares in Microsoft lose the value of their shares. Microsoft still produces goods and Bill still owns MSFT in any financial collapse. The shareholders, be they officers or outsiders, are the owners of any corporation After the cleansing, new capital costs less and capital shifts to productive investments again. more Investors would obviously pay less per unit of ownership, hence the additional capital would come at the cost of a relatively larger share of the "productive assets". Think about it-would MSFT gain a larger capital inflow from the issue of new shares if the market for the new shares was $150, or if they sold for $75 dollars. Greenspan's investment in Treasuries and not stock
