Re:The Crash of ’87, from the Wall Street Players Who Lived It
by sokoloff on Tuesday October 17, 2017 @09:01AM
(#15490532)
I think you're ascribing more market->company linkage than is actually present, possibly significantly more.
The market (in general) rewards companies who show a prospect of increasing profits. In other words, they reward healthy company behavior the same way that a calendar would reward an effectively competing company or a biological entity (with continued survival and thriving).
It's an imperfect mechanism for sure, but in general, healthy companies get rewarded and unhealthy companies get pressure to become healthy or to die. I don't see that the problems outweigh the benefits.
The market (in general) rewards companies who show a prospect of increasing profits. In other words, they reward healthy company behavior the same way that a calendar would reward an effectively competing company or a biological entity (with continued survival and thriving).
It's an imperfect mechanism for sure, but in general, healthy companies get rewarded and unhealthy companies get pressure to become healthy or to die. I don't see that the problems outweigh the benefits.