Quote:
Originally Posted by Bill Bumface
Disagree. While yes, buybacks can be totally benign in some scenarios, we now see buybacks at levels never seen before across industries.
This indicates that capital is so plentiful, that businesses can't keep up with allocating capital to their core value creation streams. It's a cheaper/easier lever to pop numbers for quarterly reports to make the execs look good. The whole point of capitalism is that capital gets allocated to value creation, and value creation has a side effect of job creation. The entire system is so slanted toward corporations right now that they have to find a way to basically dispose of their excess capital.
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I know this reply is almost a month old, but I missed it. I don't really know where to start with an answer for your statement since it is so detached from reality. You clearly don't have a good understanding of business or the oil patch; your post reads like a typical leftist uneducated "hit piece", the call out of "corporations" as being evil is a dead giveaway.
Normally I'd point out that buybacks have very little impact on ability to "pop number for quarterly reports" given they are effectively a long term investment in your own company. Would you accuse Exxon of trying to make their numbers "pop" by investing in BP shares? It is effectively the same thing.
But in all seriousness you're actually right, most companies in the North American oil patch have so much excess capital right now they are just doing these evil corporationy corporation buybacks to line their own pockets with corporation money - that it is sick! Golden parachute executive bonuses too $15 minimum wage wealth distribution 1% equality for all. Just another trick by the bourgeoisie to keep the proletariat down.