04-11-2013, 02:08 AM
I fear the stock market positive response to the quantitative easing is simply a reflection of more money being spent at the NIKKEI casino as opposed to more money being actually invested in economic growth (i.e. demand and subsequent supply). This I fear has been the case with the US economy. Wall Street is no longer about being a source of funds for growth capital. It is now largely a playground for the "investing" public and more money into the economy just provides stock market price inflation.
When you think about it, how many companies have you seen in a negative light when the need for a secondary is mentioned? Say the word "secondary" and investors scatter these days. Announcing a secondary is like declaring yourself a leper. Shouldn't raising capital through secondaries be seen as a primary purpose of the stock exchanges and thus a good thing?
What's my point? I don' know. IOC's secondary was put to good use finding more gas. Japan needs that gas to grow their economy. How does Japan finance that purchase? Doesn't really matter to me I guess so long as IOC is the supplier.
When you think about it, how many companies have you seen in a negative light when the need for a secondary is mentioned? Say the word "secondary" and investors scatter these days. Announcing a secondary is like declaring yourself a leper. Shouldn't raising capital through secondaries be seen as a primary purpose of the stock exchanges and thus a good thing?
What's my point? I don' know. IOC's secondary was put to good use finding more gas. Japan needs that gas to grow their economy. How does Japan finance that purchase? Doesn't really matter to me I guess so long as IOC is the supplier.