Will pot be big business?

It will be interesting to see how it develops here in Washington. What we're hearing is that our shops should be open sometime this summer. It seems like they've taken their time and trying to get it right. It will be 18 months or more since the measure passed to the time that it actually hits the stores.

The initial reports out of Colorado are saying that revenues are outpacing expectations.

As far as the stigma goes, I don't really see that. I don't know if you saw any of the national coverage when Colorado went live, but customers were lined outside waiting and no one seemed to care that the camera crews were there.

It's interesting that there's that big a lag for stores to open.  Is it because of bureaucratic stuff?  I'm guessing whoever is first-to-market in a given area can make a killing.

I didn't see the coverage, but I can imagine that there are plenty of people who don't care if they're seen buying pot, but when I try to imagine people I know or work with, I'm guessing it would give them pause, at least at first.  Doctors? Teachers? I don't know, I don't think it's a big deal, and I don't think it will deter folks for long, but I wonder if it might give operations that are more off the beaten path an advantage. 

Probably not.  Then they'd all just see each other at that place;)

Hmmm.  Ok.

I wonder what the work-around is then for people who are buying and selling these stocks?

AG Holder thinks it CAN be done....

http://www.thefix.com/content/attorney-general-open-banking-pot-business

 Buying and selling of stocks is a legal activity.  INVESTING in a company that does illegal things is also legal. (I mean, there's lots of investors in JPMorgan, and they've done a ton of illegal things.) 

Are all banks federally regulated, or only the ones that offer FDIC/SLIC deposit insurance?  Is there a market for a bank (shadow bank?) that offers uninsured deposits?

Thanks for that link.  Interesting.

Also, for those who might be interested, CNBC has this on tonight at 10 Eastern

Right?

coughhalliburtoncough

It's a long list. There's a work-around.

It also appears that there are banks, and major ones, willing to take on the risk...

I'd like to see the first cannabis-based MF or ETF :)

Let me be open here.  I can't stand the smell of Pot.  And since legalization here, you smell it everywhere.  (I'm not exaggerating)  I've seen people in their cars with bongs in their lap.  People smoking in parking lots, parks, etc..  So I will say I'm not happy.

But...  An interesting peice on the news this morning.  More that 40% of sales are on edibles.  If that continues to rise, then I would have less problem with it.  At that point it is to me the same as alcohol.  And while I don't like the idea of a new vice for people, and I will continue to abstain, people should make their own decision.  

Hopefully we don't end up a state of stoners...   

Bongs in their lap while driving?  That's not good.

Edibles are a game changer.  I can't imagine why anyone would want to put smoke in their lungs if they can get the same high off of an edible. 

Is THC a carcinogen (or other health risk) if consumed as an edible?

It's been big business for as long as I have been alive. 

I think that Eric Holder has already conveyed to the banks that they can open accounts for the MJ distributors and they won't face any adverse actions by his office. I don't know that he has the legal authority to grant them this "waiver" or what the next administration could do. 

That is one of the big problems the MJ distributors are facing is what to do with the cash. I'm not sure what the credit card companies are doing?

Are there any of the MJ companies publicly traded?

I saw a report yesterday of a guy who is making a killing running a security company. He can't hire guards fast enough to cover the pot shops and to move their money around for them. 

Lookie there, stoners creating jobs in this economy. Maybe we should legalize MJ in Washington DC and see if it does us any good.

Wasn't the Kennedy family involved in the Rum business in the 20's & 30's?

The biggest problem with ill gotten gains is how to convert the cash into "usable" money, it appears that the road for MJ money is currently being constructed. 

Once it's legal everywhere there will still be a huge black market to deal with......especially if they undercut the price of legal weed.  It will be very hard to enforce unless the weed you had in your possession had a tax stamp or something similar.  The more regulations that govt. puts on weed the bigger the black market will be.  Personally, I don't see the point of all the regulation.  It's just a money grab the same as it always has been. Grow your own!

More info and a list: http://www.thcbiz.com/marijuana-stocks.html

It seems like big banks will and future administrations will bend over backwards to try to get/keep as big a share of this cash as possible.

And NXS brings up a good point.  How will drug cartels get their piece back?  It won't make sense for businesses (and taxes) to push a price, if you can get the same good on the street for less.

I'm sure it's going to sound like I'm trying to be a smartass here, so big disclaimer: I'm not :)

Is there any kind of precedent with state v federal laws like this?  It kinda makes sense that the AG would give a directive in this instance, if for no other reason than the purported 'pulblic safety" issue of large amounts of on-hand cash.  At the rate it takes Congress to do anything, I'm not convinced that would have happened (could still happen?) efficiently enough to handle the issue and the AG would have had to do or say something anyway.

I know it's de rigueur to be critical of this administration, and I can certainly do that :) but I'm not sure this wasn't a good call.