A New Way Of Looking At Stocks, Profits, & The Economy...

[Old_Mil]

"By federal law, all publically held corporations either doing business in the US, trading on US exchanges, or headquartered in the US would be required to pay as divided a rate equal to or above the prime lending rate annually."

Sort of like the old "banks must pay 5% on savings accounts" rule that worked so well for a number of years.

What say you?

[Free Market Capitalist]

Bad idea, especially right now.

1) it would be unfair to some businesses who have strategically no dividend for growth or just to survive to suddenly have to pay one, it's like changing the rules in the middle of the game.

2) the prime lending rate is managed by the government, it's fraudulent. if rates were allowed to float and trade naturally on the markets without government intervention, that would be one thing.

3) i think what's happening now, the cleansing of corporate america is the best thing. hopefully we'll learn our lesson and not try to manage, burden and regulate the winners that emerge from this mess and allow them to thrive and create jobs, stimulating the economic growth.