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Asking Financial Advisers to Act in Their Clients' Best Interest Is 'Unreasonable' Now

A divided federal appeals court on Thursday tossed out an Obama-era Labor Department rule that required financial investment advisers to act in the best interest of their clients. In a 2-1 ruling, the 5th Circuit Court of Appeals said the fiduciary rule bears the hallmarks of “unreasonableness” and constitutes an arbitrary and capricious exercise of administrative power.

I'm reading Donald Trump's Art of The Deal so I'm sure he agrees with almost none of the following:

Let's go back nearly a century for a differing opinion on financial responsibility and related money matters:

“Money put into business as a lien on its assets is dead money. When industry operates wholly by the permission of "dead" money, its main purpose becomes the production of payments for the owners of that money. The service of the public has to be secondary. If quality of goods jeopardizes these payments, then the quality is cut down. If full service cuts into the payments, then service is cut down. This kind of money does not serve business. It seeks to make business serve it. Money that takes no risks in an industry, but demands its toll whether there be profit or loss, is not live money. It is not whole-heartedly in the business as a part of it; it is a dead weight, and the sooner the business is rid of it, the better.” Henry Ford, Today and Tomorrow, 1926, p. 31

“Live money goes into the business to work and to share with the business. It is there to be used. It shares whatever losses there may be. It is asset to the last penny, and never a liability. Live money in a business is usually accompanied by the active labour of the man or men who put it there.” Henry Ford, Today and Tomorrow, 1926, p. 31

“Business must be run at a profit (this will be taken up in a subsequent chapter), else it will die. But when any one attempts to run a business solely for profit and thinks not at all of the service to the community, then also the business must die, for it no longer has a reason for existence.”  Henry Ford, Today and Tomorrow, 1926, p. 29

“The profit motive, although it is supposed to be hardheaded and practical, is really not practical at all, because, as has been explained, it has as its objectives the increasing of prices to the consumer and the decreasing of wages, and therefore it constantly narrows its markets and eventually strangles itself.” Henry Ford, Today and Tomorrow, 1926, p. 30

“This makeshift of refinancing is a device of speculative financiers. Their money is no good to them unless they can connect it up with a place where real work is being done, and that they cannot do unless, somehow, that place is poorly managed. Thus, the speculative financiers delude themselves that they are putting their money out to use. They are not; they are putting it out to waste. I determined absolutely that never would I join a company ın which finance came before the work or in which bankers or financiers had a part. And further that, if there were no way to get started in the kind of business that I thought could be managed in the interest of the public, then I simply would not get started at all.” Henry Ford My Life and Work, 1922, p. 32

“Our policy is to reduce the price, extend the operations, and improve the article. You will notice that the reduction of price comes first. We have never considered any costs as fixed. Therefore we first reduce the price to a point where we believe more sales will result. Then we go ahead and try to make the price. We do not bother about the costs. The new price forces the costs down. The more usual way is to take the costs and then determine the price, and although that method may be scientific in the narrow sense, it is not scientific in the broad sense, because what earthly use is it to know the cost if it tells you cannot manufacture at a price at which the article can be sold? But more to the point is the fact that, although one may calculate what a cost is, and of course all of our costs are carefully calculated, no one knows what a cost ought to be. One of the ways of discovering what a cost ought to be is to name a price so low as to force everybody in the place to the highest point of efficiency. The low price makes everybody dig for profits.” Henry Ford My Life and Work, 1922, p. 115

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