And the investment gods looked down on lower Manhattan and thought: "This is
good! We will create Financial Institutions that will help humans use money to
build commerce and industry through instruments called Stocks and Bonds.
Those men and women who wish to participate as owners of businesses will buy
shares of stock representing their interest in the fortunes, good and bad, of a
variety of companies; those who wish to loan their capital to entrepreneurs will
receive Bonds that document the promises made to repay their loans. Thus,
business and industry will have three ways to raise the capital they need to
grow,
to prosper, and to create jobs: Stocks, Bonds, Profits. Investors will be
able to participate in the process at varying levels of risk."

And the investment gods paused from their creative work and observed: "Keep
It Simple, Stupid, there is no need for anything else! Equity investors will be
able to spread their risk among many companies in various industries,
searching for growth of capital, and knowing that the better and more profitable
enterprises will acknowledge their participation with a profit sharing mechanism
called dividends. Additionally, they will be able to sell their shares to
others whenever they choose. The smart ones will be pleased with reasonable
profits. Fixed Income investors will receive periodic interest payments, at a
rate
determined by economic conditions at the time of their investment AND by the
credit worthiness of the business. The smarter ones in this area will understand
that the market price of these securities is rarely related to the safety
either of their principle or of their cash flow. Most investors will realize
that
it is wise to have both forms of participation, in varying proportions, at
different times in their lives. Most businesses will endeavor to have more
Equity
than Debt financing, to reduce the fixed costs of the enterprise."

"Ah," the gods exclaimed, "this really is good, and simple enough for any
human to understand. There must be penalties for those who manipulate this
system
to their advantage, or who attempt to predict, hedge, or index the price
movements of these sacred building blocks of the world economy. Complexity
breeds
confusion and opens the doors to larceny. Currency differences will be dealt
with by enterprise itself and not speculated upon by amateurs. Similarly,
commodity prices will be restricted to the use of their users, and no lay person
will be permitted to speculate in any man-made contrivance, such as: options,
indices, futures, derivatives, limited partnerships, variable products, etc,
unless and until they can demonstrate that they have a secure income stream that
will more than cover their retirement needs. By then they will have learned
that such exercises are both futile and unnecessary. These three sacred
Principles of Investing shall be etched in stone everywhere: Invest only in
Quality
securities. Diversify properly. Generate Income."

"There are just two more things to deal with," said the chief investment god.
"First, let no government, in any way shape or form, levy any tax of any
kind, either on the profits of business enterprises or on the interest,
dividends,
and capital gains earned through the direct efforts of individual investors.
Second, from this day forward, there shall be no such thing as a shareholder
class action law suit, and all investor complaints will be dealt with through
arbitration panels at shared expense, winner take all, and legal fees shall not
exceed $25 per hour for the winner only.

Let No Human Being or Corporate Entity Mess Around with these Rules of
Investment Nature! The investment gods have spoken."


Steve Selengut
steve@...
800-245-0494
----------------------------------------------------
Buy "The Brainwashing of the American Investor"
http://www.sancoservices.com/brainwashed.htm


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