Understanding Stock Splits: Their Mechanics and the risks to Financial Stability and the Economy
Stock splits are a common corporate action wherein a company increases the number of its shares while proportionally reducing the stock price. The company’s market capitalization remains unchanged, but shareholders end up with more shares. For example, in a 2-for-1 stock split, every existing share is divided into two, and shareholders receive an additional share for each one they hold, while the price per share is halved.
Private Companies as Political Entities and Foundations, the risk of Ponzi Schemes and Political Fraud
A more complex and under-examined example of Ponzi schemes can be found within private political foundations and political parties registered as private entities. Political organizations, especially in democratic societies, are often perceived as tools of collective decision-making and social change. This perception creates a fertile ground for fraudulent activities, where activists and supporters, driven by political ideology or passion for a cause, are deceived into becoming shareholders of an entity that is little more than a private company in disguise.
Lebanon’s struggle to implement the Taif Agreement and the resistance movements against Hezbollah
Lebanon’s social and economic struggle and instability have been a feature of the country for some decades, and the Beirut dock incident plunged once again the country into a profound economic crisis, exploited by Hezbollah extremist groups, that are destabilizing militia in the region. Among the reasons for continuous instability in Lebanon has been the lack of implementation of the Taif Agreement, while the Shia Hezbollah Militia have taken over most parts of Lebanon’s civil society enforcing a tight Sharija rule Theocratic regime, that threatens Lebanese civil society, Lebanon’ Parliamentary Sovereignty, and wider instability in the region.
Reformism as Demagoguery in a Partitocracy: The Masking of Corruption and Undemocratic Authoritarianism
Reformism, when manipulated by a corrupt political system, becomes a demagogic tool used to deceive the public and maintain power. In a system best described as a partitocracy, where political parties dominate government decision-making to serve their interests rather than the populace, reformist rhetoric serves to mask the inherent criminality and authoritarian tendencies of the ruling elite. This version of reformism does not aim for meaningful change but instead reinforces undemocratic policies that benefit corruption, opacity in political lobbies backdealing, and criminal organizations to perpetuate societal instability.