On Sat, 14 Mar 2009 11:47:39 -0600, F. George McDuffee
wrote:
GeoLane at PTD dot NET wrote:
snip
For anybody above the lowest tax bracket, stocks are a better place to
save than a savings account for tax reasons alone since stocks are
taxed at a lower rate than dividends in order to encourage people to
invest in our companies.
snip
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While widely touted, "investment" as used here is another
word/mind game. When you by a stock or bond on the secondary
markets you are investing in the "market" and not in a company.
Strictly speaking the only time buying a stock invests a dime
into a company is at the IPO. After that it is simply
speculators swapping stocks back and forth, with *NONE* of that
money going into a company for investment, economic expansion and
job generation.
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Here is an example of an actual investment into a company. Note
this was a direct purchase of stock from the company with the
money going to the company rather than the purchase of shares on
the secondary market with none of the money going to the company.
===========
Abu Dhabi Deal a 'Stroke of Luck' for Daimler
By Hasnain Kazim and Bernhard Zand
Abu Dhabi has bought a 9.1 percent stake in Daimler in a deal
analysts say has come at just the right time for the German
automaker battling the global economic downturn. The stake is
expected to shield Daimler from a hedge fund takeover.
It was the kind of news the German stock market had evidently
been waiting for -- after the emirate of Abu Dhabi said on Sunday
evening it was taking a 9.1 percent stake in German auto maker
Daimler, the stock leapt as much as six percent. By midday on
Monday, the stock was still up around two percent. Analysts said
the investment by the oil-rich sheikhs would stabilize the
Stuttgart-based company which is suffering from the global slump
in auto sales. Daimler, they said, had found a new strategic
investor with a long-term focus.
While Daimler AG is world-famous, its new shareholder, Arab state
fund Aabar, is little known in Germany. The company belongs to a
complex web of state-owned and semi-state-owned investment
vehicles set up by the sheikhs of Abu Dhabi to multiply their
petro dollars.
Aabar is controlled by the state fund International Petroleum
Investment Company (IPIC), which has an investment portfolio
estimated at more than $14 billion. Daimler could use liquidity
at this time of crisis in the global auto sector.
snip
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http://www.spiegel.de/international/...615042,00.html
Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).