Investment/Economy Thread

[WrongBaldy]

[WrongBaldy]

thoughts about adding russia to G7? i think bould be good idea

[blah3]

thoughts about adding russia to G7? i think bould be good idea

Yeah Russia is like a mafia runned economy, I don't think you could rely on their rule of law.

[WrongBaldy]

https://www.washingtonpost.com/busin...=.658d1408d7bc
pretty good read

[blah3]

https://www.washingtonpost.com/busin...=.658d1408d7bc
pretty good read

Yeah, that guy is conflating two separate things. Buybacks using borrowed money and buybacks using extra revenue because of tax cuts. Two entirely different things.

[GreatWhiteNorthRaven]

Yeah, that guy is conflating two separate things. Buybacks using borrowed money and buybacks using extra revenue because of tax cuts. Two entirely different things.

[WrongBaldy]

Yeah, that guy is conflating two separate things. Buybacks using borrowed money and buybacks using extra revenue because of tax cuts. Two entirely different things.

his main 2 points are
-not much innovation /growth is happening organically
-corporate debt is out of whack

[blah3]

his main 2 points are
-not much innovation /growth is happening organically
-corporate debt is out of whack

Nope what he is doing is taking the idea of too much debt (which is clearly bad) and applying that to buybacks based on money kept from the tax cuts trying to paint that as bad as well.
These are two wholly separate things.

He is simply assuming that there is no growth opportunities because of buybacks but not considering that investment in growth opportunities are occurring and buybacks are occuring AFTER those investments have been made with excess cash. While debt is bad, it is also bad to have excess capital just laying around after growth opportunities have been funded.

[WrongBaldy]

buybacks are due to excess cash and based on earnings growth its mostly reduced share counts.
so yes extra cash is not needed bc all capital alloction has been acocunted for so money goes to shareholders
not employees, or more capex, or whatever

[WrongBaldy]

Corporate tax cuts and resulting debt were useless. It’s not like corporations and paying off debt

[blah3]

Corporate tax cuts and resulting debt were useless. It’s not like corporations and paying off debt

I don't get how corporate tax cuts correlate with 'resulting debt'.

[WrongBaldy]

tax cuts = less tax revenue = higher govt bond sales to fund deficit = higher total debt