Just this week,...
AG Jeff Sessions rescinded previous guidances that had permitted states to legalize cannabis with little-to-no federal interference in the matter. And a number of states, like Colorado and Washington, have legalized cannabis for either recreational and/or medicinal purposes.
You can now find thousands of dispensaries in different states around the US, despite it still being a federally prohibited substance.
Since Sessions decided to make that announcement, cannabis-related stocks have taken a dive, with some of them seen to be falling as much as 35 percent or more.
Terra Tech is known as the largest US pot stock and it's been down about 35 percent since the news came out. Whereas Canopy Growth Corp is the largest Canadian cannabis stock and it's been down about 9.9 percent.
However, industry analysts are suggesting that this recent announce by Sessions isn't going to ease the nerves of investors who up until now might have been unsure about getting invested in this market industry. With the worry about whether or not the federal government can crack down at any moment, it's no wonder why that would scare some investors away.
Aside from that concern, there are other challenges as well that come along with investing or working in this market space, such as trying to find financing, insurance, banking help etc. Many banks are unwilling to deal with entrepreneurs, lawyers, investors etc, who are involved in the cannabis industry because of the federal war against the plant that is still going on and has been for decades.
At the moment, many cannabis advocates aren't taking the threat too seriously.
This is because a great deal of people have demonstrated support for legalization for either medicinal or recreational purposes and they hope that prosecutors and law enforcement are going to focus on bigger threats.
Prohibition still doesn't work...
One area in the US that's referred to as the marijuana capital of the country is Humboldt, California.
Here you can find many different growers, some who've been doing it for many decades while many others who've only recently gotten on-board since the switch to legalization. Police in the region have used incredible amounts of resources trying to crackdown on these growers and according to their own statements, while they are busy closing one or two of those growers, there are dozens of other ones that are popping up at the same time. It's like playing whack-a-mole, and they'll never be able to keep up.
You can see the same thing with dispensaries, who after being closed are able to open up within just a few hours or the next day, trying to continue with business as usual. What else might have been accomplished with the more than $1 Trillion that has been spent on the war on drugs ? And despite all of that effort, the drugs are still winning and it's the American people who've lost and continue to lose; so long as lawmakers and enforcers bother themselves with matters that shouldn't concern them.
Pics:
via consumerreports.org
via tumblr / the-anarcho-raver
via google finance
Tumblr via EndTheDrugWar
Sources:
https://www.vox.com/policy-and-politics/2018/1/4/16849866/marijuana-legalization-trump-sessions-cole-memo
https://www.vice.com/en_us/article/43qnpn/even-republicans-hate-jeff-sessionss-new-weed-policy
https://finance.yahoo.com/news/heres-one-industry-trump-harming-194437152.html
https://finance.yahoo.com/news/marijuana-stocks-getting-slammed-reports-154718568.html
https://www.theglobeandmail.com/globe-investor/investment-ideas/marijuana-analysts-arent-too-worried-about-the-attorney-generals-order-just-yet/article37505937/
https://www.rollingstone.com/politics/news/why-america-cant-quit-the-drug-war-20160505
https://www.forbes.com/sites/artcarden/2012/04/19/lets-be-blunt-its-time-to-end-the-drug-war/#6794ee14ea35
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