Signature Bank earnings down. That may not be so bad.

I wish we had not gotten everything so backwards.

It used to be that there were companies, who wanted to make money, and customers, who wanted to spend less (and get more). There was an old saying, “the customer is always right,” or “the customer is king.” Companies did what they could to attract and retain customers. Without the customers, they knew that they had nothing.

Now, enter stockholders. Suddenly these companies have a new source of revenue, and a new set of deliverables, that has nothing to do with whatever it is that they “look like” they do. It’s just a return-on-investment scenario. Companies are favored that are making the most money. Investors naturally think it’s a great thing if companies they have a stake in are making a lot of money. But so too do people who don’t own the stock. They get confused, and all up in the hype. Random people think it’s great for these companies to be making huge profits. They think it’s a sign of healthy economy if companies are making a lot of money.

If a company is making a lot of money, though, the customers are getting less, and paying more. There are no two ways about it. Everybody behaves as if they own shares in X Company, even if they don’t, and they all get super excited when the stock performance numbers are good. But those shareholders, or wannabe-shareholders, are the exact same people who, when wearing their consumer hats instead of their shareholder hats, will complain about the prices, or that they aren’t getting enough for their money.

It’s kind of like the “aspirational voters,” who vote Republican because that’s how they see themselves – they want to be rich people – even though every time they do so, they are actually rewarding the people who are cutting their chances of “making it,” that much more. They are voting against themselves as they actually are, and voting for themselves as they wish they were.

Signature Bank earnings down $100 million thanks to dud taxi loans

So yeah, Signature Bank’s earnings are down. This is a bank that said yes to the medallion loans when other said no. This is a bank that said yes to the company I work for (disclosure), and gave the most favorable rates for business expansion. This is the bank that will open a branch office on the 12th floor of an office building at $50 a foot rather than using street-level retail spaces at $250+ per square foot. From a customer’s perspective, this is a great bank (as banks go). Perhaps from a stock-ownership perspective, it’s not.

But we have to ask ourselves, who, really, is king nowadays? It’s certainly not the forgotten customer any more. That’s just the poor sod who actually buys the products. The only players you ever hear about are the shareholders. But far more of us are customers, of far more companies, than we are shareholders.

Why are we continuing to vote against ourselves?

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