Tuesday, July 22, 2014

Medical Marijuana Stocks up For Grabs. Come One Come All.


Marijuana law reform continues to creep its way into the headlines. Sometimes it's just to sell papers. This specific situation seems to be a bit different. Medical and recreational marijuana growers and store fronts are making millions. The problem isn't the income. It's the fact that these small businesses can't even put the money in the bank. Marijuana money is still considered illegal federally. If a bank were to take the money they could get hit with charges on money laundering. This forces these small businesses owners to stash hundreds of thousands of dollars in walls and under mattresses. This is definitely not good.

These small business owners can become victims of heists, kidnappings, and who knows what else. These citizens must be able to put their money away for their safety and the safety of the community. They pay taxes on the revenue after all. Which brings us to our next point. Is the government having this same issue with the taxes dollars they are charging these businesses? According to USA Today both state and federal government tiers have no problem depositing the tax dollars paid by these small businesses. Once again our government leaving a highly unfair taste in our mouths.

The fact is we are going to have to wait this one out. This is part of the process of making an illegal law legal. After the prohibition it took quite a bit of time for the liquor industry to resume its normal flow. That situation was even easier as it had been legal before. The only downfall to waiting is gangs and cartel might take advantage of these sitting ducks. That's not something anyone should want. For now it looks like these guys are going to have to spend some of that capital in protection. This is just one man's opinion.

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