Venture capitalism is not only good but is a way of life in the United States. Vanderbilt, the railroad magnate knew he could not put together enough money to build new rail lines and stock companies with engines and cars, build stations etc. He gathered people together that could; thus, corporations were born. In some early stages, government became involved through not only the commerce clause of our constitution but because of states rights and the need for rights to use great amounts of land, etc. Some projects were so large they were beyond the means of private investors. Venture capitalism was born. This is all good and glorious, however, it didn’t take long before these people, lead by Vanderbilt even before his time “working on the railroad” before he started to undercut steam boat competition for freight and passengers by using his superior capital position to lower charges for services below operating costs; thus, vulture capitalism was born.
Once Wall “Streeters” with their Masters of Business Art (MBA) got their hands on the concept, good old fashion morality not only went out the window it became something to scoff at. Prices of stocks and bonds became based on future profits and not on locks and mortar. Name an MBA that will tell the truth about his past, present, or future profits, especially if not regulated. If you think it will be hard to get them to tell the truth about these things, try asking them what they did to make their money? Cornelius Vanderbilt to Bain Capital.
No comments:
Post a Comment