CFPB structure is unconstitutional, Justice Department says

[akirby]

And the performance of Ford's stock price the past few days shows how important Ford's financial unit is.

 

What investors and stock analysts think is important and what is really important to Ford's bottom line are 2 different things.

 

A smart company doesn't make business decisions based on stock prices. If they make the right decisions for the business long term the stock price will eventually reflect that.

[jpd80]

 

Well, that all depends on how you weigh various factors.

 

On the one hand, the market can sort out bad players somewhat effectively over time; on the other hand, those bad players can get quite large and have quite extensive impacts when they fail, which argues against allowing them to grow and lend without restriction.

 

The CFPB is, at least in my estimate, a toothless wonder. It's like the NCAA: It has to give the appearance of doing something, but none of the people that dictate how it works want it to be capable of effective action.

So it was set up as a way of showing that the government was doing something

without actually affecting or influencing the market...got it.

Edited March 22, 2017 by jpd80

[jpd80]

 

What investors and stock analysts think is important and what is really important to Ford's bottom line are 2 different things.

 

A smart company doesn't make business decisions based on stock prices. If they make the right decisions for the business long term the stock price will eventually reflect that.

Correct.

Ford is in a great position in that stockholders have little or no influence in day to day running of the company.

In some respects, that's a great way to run the company because it prevents hostile take overs and stockholder uprisings.

 

I can only imagine what would have happened in 2006 if stockholder had control of Ford and not the Ford family....

[RichardJensen]

So it was set up as a way of showing that the government was doing something

without actually affecting or influencing the market...got it.

 

Pretty much. Periodically they have to do something noisy, and when there's a major scandal they have to "investigate".

 

The only executive agencies & laws with teeth are those that came from existential crises (the SEC, the FBI, RICO, etc.) Presentist bias aside, the '08 Crisis was nothing at all like the Great Depression.