Slow Stocks: How to Fix the Stock Market in five steps.

As I write this, millions of people are sitting nervously, watching their stock portfolios and wondering if they should panic, not panic, or panic and maybe do something about it. And they're wondering this because the stock market is, in a word, broken.

I'm not an economist. I work in the trades with my hands, and make money based on how well I do my job. And I figure that's what should matter even if you work with computer screens or in corporate boardrooms.

Here's an alternative market in five steps:

1. Companies issue stock in an IPO. Your IPO is valued based on your profits for the last ten years. That's what the company is worth. No fancy figures of formulas, you are worth what you made in the last ten years. All stock is voting stock - you actually own a portion of that company, and are represented by the Board of Directors. Representatives of the Board are available to answer questions you have about the company, up to one inquiry per year per stock, to a maximum of one inquiry a week. This inquiry can take the form of a phone message of less than five minutes or an email of less than 1000 words. All inquiries, by law, will be answered within 24 hours.

2. Consumers, funds, etc buy stock by purchasing it at the IPO price.

3. Every quarter, when earnings are released, dividends are paid based on those earnings. All of those earnings. If the company made $2M in profit and you own shares equal to 1% of the company, you make $20,000.

4. Stock is bought and sold through an auction system. If you would like to put stock up for sale, you have to declare it for sale halfway through the quarter. You earn dividends as usual, and then, halfway through the next quarter, the auction closes. All stock auctions begin and end simultaneously. This means the minimum length of ownership for a stock is 3 MONTHS.

5. Stock prices and returns are tracked transparently tracked using two indicators: Historic average auction prices, and historic dividends paid. If "financial professionals" get a fee for tracking down and providing the stock to you, it is visibly marked on your statement. Fees are ONLY payable as a percentage of dividends, and you can shop around for the best fee structure.

How to replace the current stock market with this? Don't. Offer this system as an alternative for companies looking to make an IPO. Current companies trading on the existing stock market can have an option to convert, based on the same IPO value. If the current value of the stockholder assets is greater than what it would be based on the Step 1 formula

And now, the why...

The stock market was designed as a simple system to help everyone participate in that great American (and now worldwide) dream: Owning your own business. You might not have the savvy to manufacture and sell steel - but someone does, and with some additional capital (money) they can build a bigger plant and produce better quality steel at more affordable prices, leading to more profit for them. So they offer stocks, which represent ownership in that company. They do the math, figure out their dream is worth $100,000 and that they're going to issue 10,000 shares at $10 a piece. For $10, you can OWN 0.01% of Brave New Steel Mills Incorporated. If they do better, their company becomes worth more, and both of you win. If they do worse, their company becomes worth less, and everyone loses. It's designed to be a mutually beneficial agreement.

And somewhere along the line, we got lost. We forgot it was about owning something, and we thought instead it was about renting something to try and make a quick buck. Day traders never own stock - they just lease it for a while and then send it off to someone else once it climbs in the slightest. Companies bet against themselves or others and use derivatives to create a system that looks like Las Vegas - except the house doesn't always win, and they're playing with YOUR money. Stocks are bought and sold based on speculation, futures, earnings forecasts, exposure... and based on what other holders of that same stock are doing. It's turned into a case of the tail wagging the dog.

We fix it by slowing down. By OWNING stock. If you own a car and it's giving you trouble, you take it to a mechanic and try to fix it - only if it's costly to fix do you sell or discard it. If you actually OWN stock, you don't sell it at the first sign of trouble - you try and fix the company first, through voting and board of directors meetings. Only when it's broken do you sell it - and you realize, because it's broken, you're not going to get what you paid for it.

The stock market is not a magic bullet to get rich quick - and all it's doing "magically" now is naturally responding to stresses it was never designed to carry. It's time to scrap this beater.

Imagine: Career changes

I am seriously considering becoming a freelance automotive light replacement technician (for the money) and an apple chutney specialty cook (for the joy). That is all.

Transcend: 6 minutes of your life that explain every other moment

A fascinating perspective on why we make decisions that you've probably never considered.

http://www.ted.com/talks/philip_zimbardo_prescribes_a_healthy_take_on_time.html

RMOJ: Ma'am, here is your ridiculously oversized garden tool

Had my upstairs neighbour ask for help when I got home starting her brand new weed eater.

And not just any weed eater, but a giant gas powered one, weighing about 40 pounds, complete with shoulder strap and safety switches in triplicate. It's enough weed eater to do a small acreage... and we have about, oh maybe 14 feet of fence in the entire yard to trim. Finally got it started, and my last look was of a gal wearing safety goggles and crocs and fearlessly wielding a weed eater that was almost as tall as she was.

RMOJ: Bird Sighting

The first snowfall of the year... it must have been late September or October. The weather has a way of changing pretty quickly here in Calgary, and it had warmed up somewhat on this day. I stepped outside on my deck to take out the trash. As I finished my business, I turned to climb the step leading to the door back into the house. Suddenly I noticed something unusual on the step. There was a small bird just sitting there. If I hadn’t noticed him, I might have stepped right on him.

The bird followed me with his eyes, so I knew that it was still alive, but for some reason he wasn’t moving. I went and got my camera and took a few pictures of the little guy. Aside from his head, he still wasn’t moving. I decided to chip away at the ice by his feet and finally he was able to fly away.

There is beauty everywhere when we take the time to notice it.

Imagine: God’s Will

It seems like I’ve been asking the same question for a long time: "What is God’s will for my life?" I’ve waited months - perhaps even years - without a clear answer. I've asked Him many times.

This question opens the door to a host of other questions: Where do I work? What projects do I take on? Who do I say 'yes' to? Who do I say 'no' to? Who do I choose to spend time with?

The list could be endless, and I don't usually come up with any answers.

"Does God really care for me?" That's a question that inevitably comes up for me when I continue down that path.

I was created by God, in His image, and surely there is a purpose for me. He blessed me with the talents I have, and he is excited about me. Even knowing this, I was confronted with the same question.

However, the clouds started to part when I stopped to ask "What is God's will?" instead of "What is God's will for me?" the floodgates suddenly opened. God's will is for people to come to Jesus. God's will is to heal broken people. It seems so obvious now.

The question is "What can I do to bring people to Jesus?", not "What is the meaning of my life?"

Imagine: Come as you are.

Friends and family will attest that I'm a pretty calm guy. When
wedding planning was running crazy, I was the calm one who followed
the plan and made sure things happened. I work in live event
production, an industry where EVERYTHING is subject to change, up to
the last minute. I'm the calm guy that makes sure it happens, that
corrects the mistakes before they're even made, and enjoys it.
Something's on fire? Alright, we'll put it out. Order got changed?
We'll run with it.

But there are two things that really get me riled up. The first is
board games. Ask my wife. We've had more arguments over board games
than almost anything else. She has board game related injuries. If
you want to come play Dutch Blitz with me, you have to sign a waiver.

The second thing that gets me riled up is people who say one thing and
do another. Who commit and then bail. And I don't think I'm alone.
I have a huge amount of respect for the people who say "I'm sorry, I
can't, I'm already booked." If it's important to you, make time, and
keep that time. A promise of "I'll be there" is important to keep.

This morning, I was teaching a class. Or was supposed to.
Registration was low - in fact, only one person registered. I was
asked if I wanted to continue. I said yes - after all, I'd rather
teach to one person then have to send people away because registration
was low. That seems a poor excuse to deny someone the chance for
learning. So I got up early on the weekend, set up, prepared my
materials, and waited.

And no one showed up. I could be still in bed, enjoying a good book,
sipping a cup of tea early in the morning.

If there was one thing I could change, it would be as Jesus said "let
your yes be yes and your no no."

I think it's because people are afraid to say no.

What do you think? Let me know what you've bailed on, or when you've
been bailed on - how can we work together to make this better?