by Summary:
Hyper enrichment of a handful of radical corporate state supremacists wasn’t what classical capitalism was supposed to be about. Many companies are destroying themselves with the 'buy back' scam. The libertarians will argue that unfettered, unregulated capitalism and 'greed is good' will produce the largest growth and the greatest benefits for society, but we can see how this Ayn Randian selfishness only destroys companies. Excerpts: The monster of economic waste—over trillion of dictated stock buybacks since 2003 by the self-enriching CEOs of large corporations—started with a little noticed change in 1982 by the Securities and Exchange Commission (SEC) under President Ronald Reagan. That was when SEC Chairman John Shad, a former Wall Street CEO, redefined unlawful ‘stock
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Hyper enrichment of a handful of radical corporate state supremacists wasn’t what classical capitalism was supposed to be about. Many companies are destroying themselves with the 'buy back' scam. The libertarians will argue that unfettered, unregulated capitalism and 'greed is good' will produce the largest growth and the greatest benefits for society, but we can see how this Ayn Randian selfishness only destroys companies. Excerpts: The monster of economic waste—over trillion of dictated stock buybacks since 2003 by the self-enriching CEOs of large corporations—started with a little noticed change in 1982 by the Securities and Exchange Commission (SEC) under President Ronald Reagan. That was when SEC Chairman John Shad, a former Wall Street CEO, redefined unlawful ‘stock
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Hyper enrichment of a handful of radical corporate state supremacists wasn’t what classical capitalism was supposed to be about.
Many companies are destroying themselves with the 'buy back' scam. The libertarians will argue that unfettered, unregulated capitalism and 'greed is good' will produce the largest growth and the greatest benefits for society, but we can see how this Ayn Randian selfishness only destroys companies.
Excerpts:
The monster of economic waste—over $7 trillion of dictated stock buybacks since 2003 by the self-enriching CEOs of large corporations—started with a little noticed change in 1982 by the Securities and Exchange Commission (SEC) under President Ronald Reagan. That was when SEC Chairman John Shad, a former Wall Street CEO, redefined unlawful ‘stock manipulation’ to exclude stock buybacks.
The corporate giants are also demanding that Congress allow the repatriation of about $2.5 trillion stashed abroad without paying more than 5% tax. They say the money would be used to grow the economy and create jobs. Last time CEOs promised this result in 2004, Congress approved, and then was double-crossed. The companies spent the bulk on stock buybacks, their own pay raises and some dividend increases.
There are more shenanigans. With low interest rates that are deductible, companies actually borrow money to finance their stock buybacks. If the stock market tanks, these companies will have a self-created debt load to handle. A former Citigroup executive, Richard Parsons, has expressed worry about a “massively manipulated” stock market which “scares the crap” out of him.
Banks that pay you near zero interest on your savings announced on June 28, 2017 the biggest single buyback in history – a $92.8 billion extraction. Drug companies who say their sky-high drug prices are needed to fund R&D. But between 2006 and 2017, 18 drug company CEOs spent a combined staggering $516 billion on buybacks and dividends – more than their inflated claims of spending for R&D.
Evonomics: Ralph Nader: How CEO Stock Buybacks Parasitize the Economy
There are more shenanigans. With low interest rates that are deductible, companies actually borrow money to finance their stock buybacks. If the stock market tanks, these companies will have a self-created debt load to handle. A former Citigroup executive, Richard Parsons, has expressed worry about a “massively manipulated” stock market which “scares the crap” out of him.
Banks that pay you near zero interest on your savings announced on June 28, 2017 the biggest single buyback in history – a $92.8 billion extraction. Drug companies who say their sky-high drug prices are needed to fund R&D. But between 2006 and 2017, 18 drug company CEOs spent a combined staggering $516 billion on buybacks and dividends – more than their inflated claims of spending for R&D.
Evonomics: Ralph Nader: How CEO Stock Buybacks Parasitize the Economy