Chapter 28 Judges and media who know nothing about economics
In August 2007, the Second Court of the Supreme Court of Japan issued a final judgment on the acquisition of a Japanese company by the American hedge fund Steel Partners.
Japan's Supreme Court has rejected Steel Partners' provisional application for an injunction against Bulldog Flavoring's "poison pill" practices.
That said, the Supreme Court approved Bulldog Flavoring's "poison pill" strategy and dismissed Steel Partners' claim.
After receiving the Supreme Court ruling, Steel Partners' public trading price of Bulldog Seasoning's stock fell to 425 yen from the previously announced 1,700 yen.
When I read the verdict, my first feeling was that the judge who handed down the verdict knew nothing about economics.The judges clearly expressed a negative attitude towards the investment behavior of Steel Partners in pursuit of their own interests, and they definitely believed that the behavior of buying and selling stocks in pursuit of interests was bad.
The Supreme Court's ruling is the product of full reference to the decision of Bulldog Flavoring Company's board of directors.The "poison pill" can be understood to mean that if it meets the wishes of Bulldog Flavoring shareholders, then it is legal.When a dispute arose over whether it was legal for someone other than Steel Partners to quadruple, the judge's attitude was "as long as the quadruple is willing, it's fine."
After this judgment was handed down, I issued this warning to people:
In this way, what will be the final result?
My worries are self-evident.
Many foreign investors saw Japan kicking out Steel Partners and concluded, "This country is not worth investing in." In the end, they sold their Japanese stocks instead.
Even without an event like Steel Partners, Japanese stocks would fall.
The decision of the Supreme Court was well received by the media at the time.Because they expected the same outcome of the acquisition turmoil, that is, in their eyes, Japanese companies represent "good" and "victims". It is a happy event.However, these are values that have nothing to do with the economy, and it would be a mistake to report on this acquisition storm with such values.
When pursuing responsibility, people often think of government agencies and politicians first, and of course the media should also bear a lot of responsibility for this.
This is the hateful thing about the Japanese media. Their consistent position is always to regard themselves as "victims".For example, in the media that caused an uproar due to the issue of earthquake resistance fraud, the media would only shout such things as "sister teeth are hateful", "the guy who approved the design is to blame", "the residents are the victims", "demolition and rebuilding, tinkering will not help " and the like.
But please think about it calmly, the house involved in the sister-tooth show incident is 30% cheaper than usual.In any case, the buyer must bear certain responsibilities.People who buy these apartments, even if they think about it from a common sense point of view, will know that such a cheap thing must have certain risks, so it is not for them to think about it.
Of course, if you look at it from the perspective of the "victim", these views of mine are pure nonsense.
So, people who bought these shoddy apartments thought, "I bought it thinking it was cheap and high quality, so I should renovate it."
In Japan, some companies make money by whining.In NHK's programs, a few seemingly miserable people are often invited to tell how rough and unfortunate their experiences are. In fact, many people just get cheap and behave there, just for show.
What I can't figure out is why the Japanese nowadays don't have the ability to discriminate against the things that are forced into them?When there is a problem, it is either "careless" or "too careless".
The more this is the case, the more politicians will do whatever they want, and the more the government will create regulations and institutions that strengthen its power.
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