Beal and Presto

The November 16 Issue of Forbes magazine carries and article on National Presto, a 100 year old mid-West company that makes pots and pans and bullets and other items, and has been majority held by one family for 65 years. Seems that during the boom times they held onto a lot of cash, knowing full well the bust was coming, but the SEC sued them for Forbes admits Forbes criticized the company, and the SEC sued the company and wonon a charge they were really amutual fund. (The SEC lost on appeal.)

Now that the bust has happened, this cash rich company is buying up shell shocked boom times companies for dimes on the dollar, and continues to do well. Can you imagine what it took to fight the SEC? So if you are smart in america, and do business well, expect to get sued by the SEC. If you are a arch-criminal like Bernie Madoff, expect to get recurring passes.

Beal Bank had a similar experience during the boom, when it would not make bad loans, the Feds moved in. Of course, bank that made bad loans are now bailed out. REgulation is no place for govt.

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