Human Capital Markets
Mark Shefsiek stashed this in All In Ideas
If corporations are people then let's go all in --- make people corporations.
The beauty of being a corporation is that you can sell stock or float a bond or two. Lets go all in and create a market for people. A real traded market where we sell human capital not like these lame labor markets we you have to apply for work and produce at a minimum showing up for work.
We can't buy and sell people. That is insane and immoral and we tried that for a while. However, we have human resource offices and are being told to "invest" in your children. Again, lets go all in. We are not buying the person we are merely buying what they are worth.
So what is a person worth? A person is worth the discounted sum of earnings/profit. For example I am 45, not working and no real interest in working as I am raising three children. I might go back in a few years, and would project to earn maybe $600,000. So I sell say 10% of myself in the form of shares with $60,000 Initial Public Offering. It probably would not get a lot of demand for obvious reasons.
But what about my 3 year old? A true unknown commodity. How about the yet to be born Clinton baby ? Clearly he/she is worth more because of retained earnings from parents and potential for the "brand" recognition alone. Just look how Chelsea's worth exploded when her father was elected POTUS. A Baby Clinton IPO would have Goldman Sachs all over it, just like they are for its grandparents.
But here is where it gets really interesting. We would also set up derivative markets.
I may not be worth much now, but if my human market takes off I would make billions. A call option on me could have huge huge upside. On the other side, while Baby Clinton is worth billions pre birth, he/she may end up a Dartmouth beer pong champion and you would want to hedge that risk of a Lindsay Lohan/Bieber style meltdown.
While picking human winners and losers would be tough (who would have nailed the LeBron James IPO i.e. his birth) there is an intrinsic value at birth and odds increase and decrease at key life stages. So we will have to have the NSA file annual reports. But. there is a solution to this difficulty.
Goldman and Bank of America Etc can pool them into collateral debt obligations. We could have a Ohio high risk human CDO, sub prime as it were. Or the prime offsprings of Fortune 500 executives. What could go wrong?
I see how this could come across as absurd but stay with me. This way children corporations would have funding, subprime people would have minimal needs like housing and public schools and baby Clinton needs 10million dollar condo, nannies and 40k a year preschool. It is only reasonable. At later stages, say a little kid gets drafted to NBA or gets into Yale, they could do secondary offerings or float bond to pay for university. If you owned the Harvard Class of 2000-2010 (Zuckerberg) issues you would be banking coin as the kids say. But Akron public subprime would be a huge win as well and maybe better on percentage basis.
See the whole thing makes sense. Capital markets are the savior of humanity. The greatest invention ever. The problem is because of strange ideas, people have not been able to sell themselves in the free market.
Now that corporations are people obviously people are corporations.
Next installment. The development of human capital markets and high frequency human trading
Stashed in: Investing
There are some athletes like Vernon Davis who have incorporated.
How is that working out for them?
His IPO was buying interest in Fantex, not him. Illiquid market traded 28 shares today. Lol
But they declared div. roflfao
Okay, so Fantex is a step in this direction, but you've taken it to the next level.
Shouldn't every American want to self-incorporate?