Wall Street and other stock markets have continued their drop, and the panic is amazing to watch. Bit scary but also a bit, well laugable really. Now I know, stock markets are how business gets investment capital, or at least that was its purpose. If a corporation wanted to get a lot of investment money, it traded on the markets, but is that its purpose today?

The Stock Market is like the original Las Vegas Casino, in my mind. It just seems like so many people are guessing at this or that, and not following any of the business principles I always followed, or tried to. I mean for myself, it seems rather comical & sad, as these people rush around selling and selling, because they are afraid. That is the bottom line, they are afraid, and so want to cash in now, which really makes no sense to me. It is a knee jerk reaction from those are supposed to know better.

World stock markets tumbled Thursday, with benchmarks in Tokyo and Seoul losing almost seven per cent each, after recession fears sent Wall Street plunging and Japan suffered its biggest drop in exports in seven years.

The slide in Asian and European shares extended a global sell-off that accelerated overnight amid lowered projections for U.S. economic activity next year from the Federal Reserve and worries over the fate of America’s Big Three automakers, which are pleading for emergency loans from Washington. (source – CBC News)

Now I don’t understand this. If the United States expects lower growth, that really isn’t such bad news. I mean if I ran a huge corporation, I’d be looking at ways to garner my share of that growth, by marketing strategies, by product control, cost control. I sure as hell wouldn’t be pulling my hair out, because frankly, a solid company will survive. What is really at the heart of this bullshit, is that there are no longer solid companies, because instead of tending to business, they have opted to lavish themselves with corporate jets they couldn’t afford. They have squandered money by adding stereo systems to cars, instead of looking for ways to make the car different in style, and also economical in cost.

Instead of looking to make toys do more, they have opted for cheap glittering paint jobs, that are toxic to the very people they are selling to. Instead of creating brand loyalty, they have opted for shoddy workmanship or products that simply won’t last the first day of use. They can talk about ‘best warranty in the industry’ but try and collect when their product fails. If they had simply tended to business, this nightmare wouldn’t exist.

The uncertainty facing companies around the world was evident after U.S. consumer prices fell one per cent last month, the largest amount in the past 61 years. While beneficial to consumers, lower prices hurt corporate profits and raise the threat of deflation. (source – CBC News)

I mean let me see, prices drop so it hurts the profit of companies. Like if prices drop from their inflated level, and become more affordable, it doesn’t hurt corporate profits, but helps spurs more sales. Okay so instead of making a record amount, they make a more realistic profit, how is that bad?

Truth is, in the old days when we had strong economic growth, it was from prudent fiscal management, limited perks and bonuses, no golden parachutes for corporate big wigs that screwed up, and business used a portion of profits to re-invest in itself. That simply doesn’t happen today, which is why business is in trouble.

The Auto Industry KNOWS that fossil fuels are going to rise in price, as the supply dwindles. No matter how many new drilling ventures are started, fossil fuels are not limitless. There is just so much under the earth, and IT WILL DRY UP. So instead of developing new fuel sources, they have squandered the money on corporate jets, fancy office towers, and tailor made suits. Oh they took care of their workers too, giving them discounts to buy their crap, and have enticed whole generations to buy their goods, not by making them fuel effecient, not by making them unique in style, not by making them safer or affordable, but by putting GPS in them, by putting seat warmers in them.

The fact is simple, if business wants to survive, it needs to move away from its path of obulence, from greed, and deliver a product that people will want to own, want to purchase. They need to develop new ways to produce goods, that employs people for a fair wage, and not ship it all elsewhere. They need to plan for 20 or 30 years ahead, and invest income back into new equipment that is fuel effecient, not just for the next quarter’s profits.

Financial Markets need to reflect reality. To say a company that has a solid growth of 30% each year should not be downgraded, but lauded. To insist on returns that are simply unrealistic, like 200% or more, needs to stop being the benchmark. How a company deals with maintaining its base, how it has employees that have been there for years, not months, should count. Time that bonuses paid to CEO’s and others, was based not on some agreement, but on results.

In short, time to return to real values, not the phony conservative values of doing whatever it takes, for business. Time to do what is right, FOR THE PEOPLE.