Wednesday, October 22, 2008

Follow Up: What Type of Investors are SWFs

Well, if Nicky Sarkozy gets his way, they'll be the worst kind. Apparently he has fallen off the wagon along with the rest of our world leaders. He wants a Europe-wide SWF which has the following stated goal:

"buy stakes in companies with low share prices and protect them from foreign predators"

Strange, back in those naive, silly days of capitalism, a low share price indicated that the company had poor prospects and thus was not a good investment. Back then, the share prices suggested that these companies faced quaint capitalist problems like overbearing competition, bad management, too much debt, bad products, or litigation.

Thankfully, the New World Order has seen the light. They've finally recognized that economies following Marx, Engels, Lenin, and Stallin have always been so wildly successful and stable precisely because they outlawed those nuisances above. Just like the pickled corpse of Lenin in Red Square, they insisted on preserving their rotting businesses at the expense of focusing money and effort on fresh, vital ones.


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