I have always found it odd that people that a breakup of the big banks like Citigroup, Bank of America, Goldman Sachs, JP Morgan, and Wells Fargo would somehow screw over shareholders.
As you probably know, the most legendary business breakup of all time occurred when the Supreme Court decided to break up John Rockefeller’s Empire at Standard Oil into dozens of baby oil pieces. Rockefeller was on a golf course at the time he found out about the ruling from one of his aides, and he reportedly responded to the news by saying “Buy Standard Oil” and then going on to sink a ten-foot putt (hate him or love him, you gotta admit that the big dogs of American capitalism lack the panache that the titans of yore possessed).
Of course, we all know what happened–the disparate parts became things like Exxon, Chevron, Conoco, Buckeye Partners, parts of BP, … Read the rest of this article!
I have long interested in discerning the contradictions between how the wealthy are portrayed in the popular culture and the mass media at large compared to their actual behaviors. This discrepancy has been most widely documented in the 1996 work of Dr. Thomas Stanley’s “The Millionaire Next Door”, who pointed the portrait of the typical American millionaire as a member of a two-member nuclear family that owns a small business or participates in a high-earning profession that drives a Toyota.
In my own observations of the behaviors of the wealthy, I have noticed the following behaviors:
The wealthy and fast-becoming wealthy have a ridiculously low spending to post-tax earnings ratio.
Most finance articles encourage Americans to save 10% to 20% of their annual income to retirement, speaking of the effort in an infantilizing manner as though you were telling a child to gin up and eat their spinach. The wealthy … Read the rest of this article!