Wednesday, June 11, 2008

Get those profits

Liberals want to grab those nasty profits from oil companies. Great idea. Who cares if those greedy Bush friends get leprosy and rot? Well, maybe nearly everyone. Here is a brief lesson on stocks. The value and hence the price of a stock goes up with earnings. Idiotic politicians should consider the following:

  • Almost 43 percent of oil and natural gas company shares are owned by mutual funds and asset management companies that have mutual funds. Mutual funds manage accounts for 55 million U.S. households with a median income of $68,700.
  • Twenty seven percent of shares are owned by other institutional investors like pension funds. In 2004, more than 2,600 pension funds run by federal, state and local governments held almost $64 billion in shares of U.S. oil and natural gas companies. These funds represent the major retirement security for the nation's current and retired soldiers, teachers, and police and fire personnel at every level of government.
  • Fourteen percent of shares are held in IRA and other personal retirement accounts. Forty five million U.S. households have IRA and other personal retirement accounts, with an average account value of just over $22,000.

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