Tuesday, March 11, 2014

Bill Ackman shows why hedge fund slime tactics need to be regulated

The NYT has an expose of the lengths to which Pershing Square Capital boss Bill Ackman will go to lobby regulators and elected officials to aid him in his campaign against Herbalife.

I've never bought a Herbalife product and generally can't get too enthused about any direct-marketing scheme, be it Amway or Mary Kay or whatever, but like them or not they've been a part of the business scene for generations. Whatever flim-flam and unrealistic expectations they're peddling pales in comparison to what Ackman is doing.

Among other things, he's giving hedgies a bad name. This isn't "capitalism", it's rank cynical opportunism. It's a bully trying to destroy the value of another company with tactics made possible by his deep pockets and political connections.

What would stop this foolishness? A 100% tax on non-productive economic activity. Take the incentive away completely. Let Mr. Ackman and those like him use their talents and their money to make constructive contributions to the society they're a part of.

Many, many entrepreneurs have proven that can be profitable too.

No comments:

Post a Comment