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What would you do as President/Prime Minister? (pg. 2)
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| Krypton |
| quote: | Originally posted by jerZ07002
there is a thing called mineral rights in property. the minerals are part of the property. taking the oil from the property is taking part of the property. |
You've misunderstood the plan. No oil is "taken from the property". The oil is sold to the state oil company. The state oil company would not take or confiscate <-(capitalizt) the oil. Nobody's property rights are violated. The only thing they are required to do is sell the oil to the government.
| quote: | | as i said, securities (companies) are valued based on either discounted cash flows or assets values. you can't derive the expense of a company (the market price at which the government company will purchase the oil from drillers) by the stock value. that just makes no sense at all. |
Here is a slight moderation to my original plan. 49% of the company equity would be sold on the open market. Additionally, securities directly tied to value of a barrel of crude would also be sold on the open market, but the securities underwriting would be controlled by the government. Additionally, the government would have the option to dilute the value of the securities in the even of a speculation bubble. So there, two completely different types of securities. One tied to the state oil company equity, and the other tied to the commodity itself.
| quote: | | EDIT: traders absolutely care about DCF. A traders jobs is to earn a profit on a deviation from that value. traders aren't just buying securities because it's the cool thing to do - and if they do that trader won't be employed very long. |
I don't know a single trader who considers a discounted cash flow valuation in his day trading. I believe they use news feeds and technical analysis. DCF analysis is categorically fundamental analysis.
| quote: | | how would this be different. a government controlled entity could do the same. |
Spend more than it makes? Not exactly in this case. This is because the state oil company would not be drilling, exploring, refining, or distributing any of the oil. Capital expenditures would be almost nil. The expenses would be in the realm of maintaining whatever buildings are occupied by the company, employee's wages, etc.
| quote: | | the oil rights are part of the persons land. |
The oil is not confiscated by the government. The oil is required to be sold to the government. Two different things. |
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| Krypton |
| quote: | Originally posted by LatinLover
Attack Iran |
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| LatinLover |
| With Kryptons economic policies this country wouldnt even survie the implementation of such policies. |
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| Capitalizt |
| quote: | Originally posted by LatinLover
Attack Iran |
The sad thing is, he's serious. |
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| Krypton |
| quote: | Originally posted by LatinLover
With Kryptons economic policies this country wouldnt even survie the implementation of such policies. |
LOL..
90%+ of the world's oil reserves are under the control of majority government staked oil companies...
My plan still leaves plenty of free market trading of the commodity, but prevents Wall Street jizzing all over gas prices. But we all know you're totally for unfettered capitalism in the hands of a greedy few. |
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| Capitalizt |
| Is there something wrong with greed krypt? ;) |
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| Krypton |
| quote: | Originally posted by Capitalizt
Is there something wrong with greed krypt? ;) |
Unrestricted greed, yes. I don't want some banker on Wall Street to be able to get 1:50 leverage and play Russian roulette with people's livelihoods.. |
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| LatinLover |
| quote: | Originally posted by Krypton
LOL..
90%+ of the world's oil reserves are under the control of majority government staked oil companies...
My plan still leaves plenty of free market trading of the commodity, but prevents Wall Street jizzing all over gas prices. But we all know you're totally for unfettered capitalism in the hands of a greedy few. |
Comparing your economic policies to Jimmy Carters, I am pleased to tell you that Jimmy is a big "success" compared to yours. |
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| LatinLover |
| quote: | Originally posted by Krypton
Unrestricted greed, yes. I don't want some banker on Wall Street to be able to get 1:50 leverage and play Russian roulette with people's livelihoods.. |
Better yet Krypton wants to draw the line on how much you can earn. |
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| Krypton |
| quote: | Originally posted by LatinLover
Comparing your economic policies to Jimmy Carters, I am pleased to tell you that Jimmy is a big "success" compared to yours. |
My economic policies? I laid out an energy policy. Jimmy Carter? WTF are you talking about? |
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| jerZ07002 |
| quote: | Originally posted by Krypton
Here is a slight moderation to my original plan. 49% of the company equity would be sold on the open market. Additionally, securities directly tied to value of a barrel of crude would also be sold on the open market, but the securities underwriting would be controlled by the government. Additionally, the government would have the option to dilute the value of the securities in the even of a speculation bubble. So there, two completely different types of securities. One tied to the state oil company equity, and the other tied to the commodity itself. |
how would the government dilute the value of the security? if the process is too easy noone would buy the security.
| quote: | Originally posted by Krypton
I don't know a single trader who considers a discounted cash flow valuation in his day trading. I believe they use news feeds and technical analysis. DCF analysis is categorically fundamental analysis. |
day traders aren't the type of traders i was talking about. there aren't many goldman traders that will buy 100 million on the company's acccount based on simply newsreal. people spend their lives valuing companies based on cash flow, asset values, etc...
| quote: | Originally posted by Krypton
Spend more than it makes? Not exactly in this case. This is because the state oil company would not be drilling, exploring, refining, or distributing any of the oil. Capital expenditures would be almost nil. The expenses would be in the realm of maintaining whatever buildings are occupied by the company, employee's wages, etc. |
teh treasury doesn't spend more than it collects either. congress appropriates more than the treasury collects.
| quote: | Originally posted by Krypton
The oil is not confiscated by the government. The oil is required to be sold to the government. Two different things. |
being required to sell to the government is taking a property right from land owners. one of the rights that comes with land is the right to sell to whomever the owner wishes. when you are required to sell to a mineral right to the government you really have no right. this is the same as eminent domain. correct me if i'm wrong, aren't you against eminent domain? |
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