I know that a lot of people are upset about the growing power and influence of the wealthy. In and of itself this does not bother me. If the pie was growing for everyone I would be inclined to view the concentration of capital into fewer hands as a good thing.

Here is one reason why. From CNBC

Influential hedge fund manager David Einhorn has called for Microsoft Chief Executive Steve Ballmer to step down, saying the world’s largest software company’s long-time leader is stuck in the past.

Einhorn’s Greenlight Capital hedge fund has been a recent buyer of Microsoft stock, which at under 10 times expected earnings is regarded by many as undervalued.

Einhorn is buying up Microsoft with the intention of firing Ballmer and getting the company to do something constructive with its pile of cash. Perhaps, pay it out to investors who can put it to use elsewhere? One can only hope.

However, even if they actually bring in some new folks who can drag Microsoft into the 21st century that’s a win.

In a world owned by Index Fund 401(k)s this sort of thing isn’t possible. Investors with an interest in actually allocating capital are a key part of this whole capitalism thing. That almost necessitates a concentration of wealth.

Why this has to be inconsistent with a quality education system, high investment in domestic infrastructure and decent state-provided retirement package for Joe Six-pack, I have no idea.

If there were any grand bargains to be struck wouldn’t this be the one we want?

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