One should not lose sight of investments that have the potential to pay huge returns and dividends. Like oil and gas. Like Gulfslope Energy.
The interview on Cavuto reveals that ‘Woke’ investing was a big contributor to the failure of the bank.
The message was that, when investing with the focus on climate change, ESG, and renewable energy rather than shareholder value, then not only could returns on the investment not be realized, but the investment itself may be settled for pennies on the dollar when it all collapses.
And on top of that, it appears that some bank officers ‘cashed out’ by selling off their stock before the collapse. And if they get away with it, a sad state of affairs for the only losers, those shareholders.
The moral to this story is that if your funds are an investment, not a ‘contribution to a cause’, and management is not supporting the interest of the shareholders as it’s first priority, then ‘Get Out!’ while the getting is still good.
Politically motivated investing for purely ideological reasons risks a lower rate of return and in extreme cases, gross loss of principal. Perhaps that is why BlackRock, Vanguard, and State Street are all abandoning ESG investing. They have seen the handwriting.
Look at Russia and China. Even much of Europe and the UK. Is this the standard of living you find appealing? Three generation households with six to a room are common. No, I am not talking about the ‘fat cats’. But the typical productive worker trapped in such a society. No wonder the world beats a path to our door. Opportunity draws them here.
The progressive vision may be to bring the less fortunate up to parity with ‘equity’, but the consequence of this approach will actually be to bring everyone down to the level where no one has anything. That is, unless you are employed by the government and are the beneficiary of their gracious good will.
The non-productive can never reach parity with the productive without harming efficiency and reducing output. It is a skill issue and that is what must be addressed. Teach them to read and do basic math. To be on time at work. Pass a drug test. Then they have the opportunity for a better life.
Since there is no initiative to work for the same wages as paid to those who do not work, many workers will allow someone else to carry the load.
The result? No one does enough. Lower output. Poorer quality. Lower standard of living. It has never worked. Anywhere. Anytime.
The ‘equity’ of this action will be that no one has anything. Except ‘fat cats’ skimming off the top.
Please notice that, without the wealth produced by the most productive elements of our society, there would be nothing to redistribute. A case of the parasite killing the host? Exactly. And that is the problem with equity. How will it be paid for with no wealth? That is why it always fails.
So, Joe’s executive order to allow pension funds the option to purchase ESG investments has been blocked by both Houses of Congress, and absent his veto, we are spared for now.
But recognize the jeopardy these socialists in government can put all of us in by simply changing investment rules (ERISA) to allow willing bureaucrats to invest your money to further their political ambitions rather than your financial goals. This will not be the last act in this play.
Best to stay informed.
Mrs. Smith.
