Here Are Three Reasons Why The New York Times Is Dead Wrong About Cannabis

Last week, The New York Times ran an editorial piece with the headline, “Do We Really Want a Microsoft of Marijuana?”

The author of the report, Christopher Caldwell, opines that the SAFE Banking Act would disproportionately help giant operators at the expense of smaller companies. That, in turn, would usher in a dystopian future in which multinational businesses develop new flavors and products to turn America’s children into a nation of potheads.

I read a lot of wrongheaded news and misinformation pieces about cannabis, but this one may be the winner in terms of getting things wrong.

In barely 1,000 words, the author makes three points that need addressing.

The first is the overall theme. We absolutely want a Microsoft of marijuana!

We want one as investors, as consumers, and as supporters of the industry. Microsoft Corp. (NASDAQ: MSFT) has its flaws, but overall, a lot of people have benefited from the success of the tech company. We can partially thank Microsoft for reliable computer operating systems, sophisticated spreadsheets, and cheap cloud computing that allows us to share our ideas in real time all over the world.

Do we want a company with the resources to improve the accuracy and speed of cannabis testing, one that can grow more precise strains for medical patients, and one that can perfect security and seed-to-sale tracking?

I want those things. So do you.

And he doesn’t know it yet, but so does Mr. Caldwell. Here’s why…

Why We Want the Microsoft of Cannabis

The second issue I had with the article was that Mr. Caldwell imagines that sophisticated banking will turn “an artisanal space into a corporate one.”

He has it backwards.

The Next American Aristocracy is expected to be fueled by today’s cannabis boom. If you take advantage now, you could enjoy the kind of wealth “that lasts generations.” Click here to see for yourself

As he acknowledges, there is already big business in cannabis. Billionaires fund several multi-state operators (MSOs), and multinational companies – like Constellation Brands Inc. (NYSE: STZ), Altria Group Inc. (NYSE: MO), and Molson Coors Brewing Co. (NYSE: TAP) – are in the business.

Huge companies have the tools to get in the industry without banking.

It’s the smaller companies that are threatened by the continued absence of banking, and it’s not even “sophisticated” banking services that they can’t access.

We’re talking about basic banking services like checking accounts, credit cards, merchant services, and wire transfers.

Since small businesses would continue being barred from banking, Mr. Caldwell’s proposal would cause the very concentration of big business that he seems to oppose.

My Third Issue

Mr. Caldwell seems convinced that the only likely outcome of larger companies coming to dominate the cannabis industry is a horrifying future – an industry full of Joe Camels and OxyContin, to use his examples.

He is wrong about this, too.

Since their IPOs, the top pot stocks on the market have seen windfalls upwards of 1,700%, 3,800%, even 5,800%. Everywhere you look, people are making a fortune off this agribusiness boom. And you can, too… Just click here to see how

The legal market has compliance departments, lawyers, testing equipment, and executives who are following the laws.

That’s not the market to worry about. The real concern should be with illicit markets.

The illicit market is where children are buying cannabis. The illicit market is where people are killed in drug wars and from unsafe products.

It is this part of the cannabis market that lacks the accountability Mr. Caldwell wants to see. The illicit market does not have multimillion-dollar brands that would become worthless in the event of a scandal. These illicit dealers don’t stay up at night worrying that the state is going to pull their licenses.

And most relevant to Mr. Caldwell’s article, the illicit operators are the ones who benefit from an all-cash industry.

The SAFE Banking Act would bring the legal industry into the financial system, where regulators can track transactions. The individuals working in the legal cannabis market are among the most ethical people I’ve ever met in any industry, and I am proud to be in an industry where they lead the way.

Cannabis is about much more than just profits. It saddens me to see someone predicting that a whole industry will go the way of Joe Camel when the majority of the sector is more akin to the thousands of ethical companies across the world that take pride in their products and give positive contributions to their communities.

My Final Thoughts

I have read Mr. Caldwell’s book, “Reflections on the Revolution in Europe: Immigration, Islam, and the West,” and he is clearly an intelligent and thoughtful person.

He is someone interested in much deeper analysis than is evident from his latest column.

So to me, his report on the cannabis industry is merely proof that almost everyone is uneducated about something.

I would encourage Mr. Caldwell to meet some of the people running cannabis companies – big companies, small companies that aspire to be big, and companies that are perfectly happy staying on the craft side of the business.

I think he’d come away as impressed as I am, and I’m certain he’d be convinced that they should not be denied a checking account.

The Newest Potential Moneymaking Trend in Cannabis

 This may be the greatest thing to ever happen to cannabis investing.

Forget buying traditional stocks – these newly allowed Cannabis Lots can deliver 200%, 500%, 1,000%, or more gains in just days.

And in this special presentation, America’s No. 1 Pattern Trader will walk you through exactly how to put the profit power of Cannabis Lots in your own hand.

Click here now to see it in action.

Follow Money Morning onFacebook and Twitter.

About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and visitors become smarter, more confident investors.To get full access to all Money Morning content, click here.

Disclaimer: © 2019 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.