- Jun 6, 2007
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It is really irritating the foolish commentary one hears that in America corporate buyback of their stock is some kind of problem and this activity should be restricted. Many of these commentators believe that if that activity is stopped America's corporate executives will use the money they would earmark for stock buybacks to increase wages for their workers or increase capital spending or start new businesses. These commentators are acting like simpletons that don't live in the real world; America's executives are not going to increase wages they pay market rate that's it (look at all the money they got from the 2017 tax cut legislation one time bonuses aren't wage increases) and they aren't going to do significant capital spending they only do cap spending if there is a good return on capital and if such profit opportunity existed they would already be pursuing it there is plenty of financing available in our society to pursue good business opportunities. If proponents of this foolish policy have their way what America's executive will do with that stock-buy-back money is the executives will increase their compensation and bonuses and increase stock dividend. Good simpletons that is really what America needs to see their shockingly over compensated executives have their compensation increased could these people be any stupider! As for increase in dividends that is not a bad outcome but it is a better outcome for the American people if we let Americas's executives buy back their stock because that increases the value of their stock, remember stock price is based on earning per share and if one reduces the number of shares it increases the earnings per share, and many many Americans have 401K savings plans heavily invested in stock and the country should want to grow that savings plan as much as possible for those people because many of those people will be living solely off their social security income and their 401K income - a related note should mention that some 401k owners direct dividend money to themselves, don't save it, they use it to live off so it would not be there for their retirement.
You advocates of this misguided policy really need to get your heads out of the hole in the ground you have it in you're being ideologues and not considering the full ramifications of what your doing and you're going to end up hurting a lot of Americans! If you want want to advocate for something good in regard to America's executive advocate for them to operate on a modified fiduciary duty basis toward their stockholders for the balance of the year, for the nest three fiscal quarters America will be in a recovery mode in terms of businesses earnings their earnings likely won't be at stable and at relatively normal levels until the latter part of this year it would be great if America's executives didn't use their standard formula for deciding staffing levels during this time but hold off as much as possible and to the greatest extent as possible in regard to cutting staff because each of those cut staff will be an American family that will be hurt by the lay-off!
This writer is one of the many Americans that thinks that this Senate Republican Stimulus bill that plans to inject one trillion dollars into the U.S. economy to get her to recover from the Coronavirus crisis is too small it won't be enough to spare many Americans from experiencing devastating harm. In watching CNBC earlier today they had a guest on a David Bailin who is a Managing Director of Citi Group's Private Bank and he gave some excellent analysis on the economic ramifications of this Covid 19 crisis and he seemed to me to be spot on in regards to identifying what wisdom calls for when he said the stimulus package from Washington needs to be three to four trillion dollars in terms of the stimulus that it is injecting into the economy so that it can prop up individuals who have lost their income or have had it significantly reduced because of the crisis and get small business up and running until the economy begins to normalize in three to four months! Hopefully, members of Congress won't be ideologues but will pass legislation that solves the major problems this crisis presents our nation and pass it quickly!
You advocates of this misguided policy really need to get your heads out of the hole in the ground you have it in you're being ideologues and not considering the full ramifications of what your doing and you're going to end up hurting a lot of Americans! If you want want to advocate for something good in regard to America's executive advocate for them to operate on a modified fiduciary duty basis toward their stockholders for the balance of the year, for the nest three fiscal quarters America will be in a recovery mode in terms of businesses earnings their earnings likely won't be at stable and at relatively normal levels until the latter part of this year it would be great if America's executives didn't use their standard formula for deciding staffing levels during this time but hold off as much as possible and to the greatest extent as possible in regard to cutting staff because each of those cut staff will be an American family that will be hurt by the lay-off!
This writer is one of the many Americans that thinks that this Senate Republican Stimulus bill that plans to inject one trillion dollars into the U.S. economy to get her to recover from the Coronavirus crisis is too small it won't be enough to spare many Americans from experiencing devastating harm. In watching CNBC earlier today they had a guest on a David Bailin who is a Managing Director of Citi Group's Private Bank and he gave some excellent analysis on the economic ramifications of this Covid 19 crisis and he seemed to me to be spot on in regards to identifying what wisdom calls for when he said the stimulus package from Washington needs to be three to four trillion dollars in terms of the stimulus that it is injecting into the economy so that it can prop up individuals who have lost their income or have had it significantly reduced because of the crisis and get small business up and running until the economy begins to normalize in three to four months! Hopefully, members of Congress won't be ideologues but will pass legislation that solves the major problems this crisis presents our nation and pass it quickly!
