There is one connection in the current economic mess that I have not heard anyone talking about. Over the last 10 years hundreds of Mutual companies (companies owned by their customers) have been converted into Stock companies (companies owned by stockholders). This allowed companies to more easily raise money and do mergers via stock-swap. (A mutual company can only buyout another by means of cash.) But it also made these companies far more volatile, because the value of the company is inherently tied to stock price, and every monetary system was focussed on quarterly returns. How many banks that have gone under would have survived if they were still mutual companies?
Any economists out there who can speak to this?
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