If this is your first visit, be sure to
check out the FAQ by clicking the
link above. You will be required to register
before you can post: click the register link above to proceed. To start viewing messages,
select the forum that you want to visit from the selection below.
There are two significant problems here, first being that in today's market place 'every body and their cousin' seems to be monitoring the stock market minute-by-minute and far too many have thier hands on the trigger, so to speak. The least little new or indication cause too many to react in a 'knee-jerk' fashion and others quickly jump on the trend. This causes wild swings that can be most disturbing.
Twenty or thirty years ago, one might read of such news the following day or at least a few hours after the happening and then pick up thier phone and speak to their investment counselor or the local stock agency. They'd often get a "we'll watch it" or some other comforting line that says, "Calm down, it's just a bump" and that it'll straighten itself out. Brokers and counselors were used to such things and often looked at longer trends before making a decision. Today, there are too many who simply panic and have the technology to add to the panic within seconds.
The other part of the problem, as I see it, is that such happenings are quick to be labelled "political". It's like it not the fault of the company, it like the administration is picking on them because they are a supporter of the other party. Ridiculous I think, but then again, not impossible. But if you are a violator, then what is the easiest defence? Sort of like the days of war crime trials when one would often here, "I was only following orders".
The bottom line is that we'll have to wait and see. Supply of such commodities like wood are often very blurred and even for a company seeking the cheapest supply channels, it's not exactly clear navigation. The global supply chain is frought with almost impossible channels of source.
Well, the "Lacey Act" and it's development first came to my attention with the Gibson Guitar Co. raids.
I play for fun so the story caught my eye a couple of years ago. I looked into it pretty good in relation to Gibson and it looks to be nothing more than government gone crazy in that case. (I think the Honey Conspiracy above can be seen differently because of such blatant mislabeling, concerted efforts to blatantly lie, and potential health dangers.)
It was like "Let's take this law and see if we can interpret it in such a way to make them look as if they were doing something in violation...."
Now get this, in the end Gibson settled with the government because it was going to cost too much to litigate. The settlement? They paid a total of $350,000.00 in fines and THE GOVERNMENT GAVE THE WOOD BACK THEY SEIZED THAT WAS IN QUESTION THAT BROUGHT ON THE INVESTIGATION AND THE RAID!
That's the equivalent of you getting stopped, having a gun that the officer interprets to be illegal, he arrests you, then figures his interpretation may not be right, he fines you $350.00, and then gives you the gun back.
Anyway, there is a video at the bottom of this that is interesting. Only like 6 or 7 minutes long.