By Sell Puts
Many of you may or may not know California is on the brink of a fiscal collapse. Law makers in the state have been searching for solutions to the problem for the past five years. For those of you who would like a more in debt read on California's current fiscal situation, BeyondChron has a great article.
One interesting tidbit from the Beyond Chronical article i would like to share with you:
From a capitalist point of view i believe creating new business growth is a good thing in any environment, especially if the new industry provides needed tax revenue when all other taxation avenues are exhausted.Tobacco companies along with Federal/State governments will also benefit from the above scenario of "new industry creation", REVENUE! The tobacco companies have the resources to jump into the market taking over operations while also standardizing the packaging so the product can be efficiently and properly taxed. Lobbyists have actually got the proposition on the California ballot in time for November 2010 elections.
This will be very pleasing to shareholders of, the Altria Group (NYSE: MO) and or Phillip Morris. You can bet your bottom dollar these companies have contingency plans for potential legalization. These companies are capitalists with a LOT of R&D monies which funds much future thinking. For example, take a look at this article from 1976 published by the tobacco companies :
An excerpt from page 57 (page 67 of 77912-2673 in the archive)
One interesting tidbit from the Beyond Chronical article i would like to share with you:
According to Bloomberg News, the market believes a developing country like Kazakhstan, with about 15.7 million people, is less likely to default on its debt than California, which is the eighth largest economy in the world.One solution gaining traction is the issue of legalizing personal amounts of cannabis, it will be regulated and taxed. Bigger name news outlets have been slow to report on this story, though interestingly enough; smaller news outlets as far as Indiana are picking up on this story.
From a capitalist point of view i believe creating new business growth is a good thing in any environment, especially if the new industry provides needed tax revenue when all other taxation avenues are exhausted.Tobacco companies along with Federal/State governments will also benefit from the above scenario of "new industry creation", REVENUE! The tobacco companies have the resources to jump into the market taking over operations while also standardizing the packaging so the product can be efficiently and properly taxed. Lobbyists have actually got the proposition on the California ballot in time for November 2010 elections.
An excerpt from page 57 (page 67 of 77912-2673 in the archive)
(The tobacco companies) have the land to grow it, the machines to roll it and package itthe distribution to market it" (Reference 200.) In fact, some firms have registered trademarks, which are taken directly from marijuana street jargon. These trade names are used currently on little known legal products, but could be switched if and when marijuana is legalized. Estimates indicate that the market in legalized marijuana might be as high as $10 billion annually....
