Dizzy and Confused?
Richard Russell snippet
Dow Theory Letters
Sep 2, 2010
September 1, 2010 -- Many years ago I wrote a piece that I called
"The Perfect Business." That piece has been available
on my site ever since.
I've had more requests for that piece than anything I've ever
written. It seems to me that the criteria for the "perfect
business" is now more important than ever.
And why are those "perfect"
criteria so important? I just read a piece in Dennis Gartman's
always informative report. The piece was written by Porter Stansberry
on August 21.
Stansberry starts with the thesis that
you're in the process of starting a new business or expanding
your already established business. But wait, you've inherited
a greedy partner. Here's your partner talking.
"The deal is this -- I'll be your
partner in any business you start, as long as that business is
"But I can't give you any capital
-- you'll have to come up with that on your own. I don't give
you any labor -- that's up to you. What I will do, however, is
demand that you follow all sorts of rules about what products
and services you can offer, how much (and how often) you pay
your employees, and where and when you're allowed to operate
your business. That's my role in this affair -- to tell you what
"Now in return for my rules, I'm
going to take roughly half of whatever you make in the business
"You're also going to have to pay
me about 12% of whatever you decide to pay your employees because
you've got to cover my expenses for promulgating all of the rules
about who you can employ, when, where, and how.
"Now, after you've put your hard-earned
savings at risk to start this business, and after you've worked
hard at it for a few decades (paying me my 50% or a bit more),
along the way each year, you might decide you'd like to cash
out -- to finally live the good life you've been promised. Wait
I want part of that too."
Russell comment --
Well you get the idea. And oh yes, you might buy a lot of life
insurance. Because after you die, I'll take half of whatever
your estate is worth. One final thought, if you ever try to stiff
me or hide anything from me, I'll break down your door in the
middle of the night, throw you in handcuffs in front of your
wife and kids and threaten you with my crowd of agents, all carrying
automatic weapons. Then I'll throw you in the slammer, and you'll
stay there until we work things out to my satisfaction.
Wait, who's the guy who's doing all the talking and offering
you such a great deal? What, you haven't guessed? It's the US
government, your partner in success. What's this? Now you're
rethinking your idea about starting a new business? And your
neighbor is rethinking his fantasy of expanding his business?
Don't worry,guys, go ahead, you've got a big, powerful partner
who is "always there and ready to help." What
more could anyone ask for?
With this kind of partner, would you want to start a new business?
And we wonder why nobody is hiring.
It's the little guy, the moms and pops, who do most of the employing
in this nation. And mom and pop are tearing their hair out these
days, wondering how they're going to survive in the Obama world
of "tax hell out of the rich, and share the wealth -- just
spread it around." The rich man and the little guy are both
dizzy and confused. Maybe best to hunker down and see what Congress
comes up with.
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