Friday, May 29, 2009

Costco snubs Wall Street

Thumbs up to Costco for disappointing Wall Street analysts like moron David Schick who thinks that the way to run a business in tough times is to cut employees rather than profits. Costco apparently knows better.

The idea that speculator profits come first, and employees and customers second, is what got us into this current mess. America has to move past the idea that traders who merely buy previously owned shares in a company but contribute no new capital or useful work are a privileged class who are entitled to anything. They should be the lowest class, like India's untouchables. Be thankful you get anything when all you did was buy shares that were previously owned. Trading paper is not work and adds no value.

Ignoring fluctuating stock prices and focusing on business fundamentals as Costco and a few other companies are doing is what will get those companies through this recession and out the other side in decent shape.

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