Re:End Stock Buybacks, Save the Economy?
by ahelwer on Thursday August 23, 2018 @07:47PM
(#17831577)
Many corporations have used debt-financed stock buybacks.
Re:End Stock Buybacks, Save the Economy?
by spacehome on Thursday August 23, 2018 @11:01PM
(#17832465)
That money comes from future earnings. Averaged over the whole economy, it doesn't have a net effect.
At least those are not done through the exploitative appropriation of the surplus value produced by the worker.
Re:End Stock Buybacks, Save the Economy?
by ahelwer on Thursday August 23, 2018 @08:13PM
(#17831724)
Of course they are! The full debt will be repaid in time, with interest. Where does that money come from?
Sometimes the full debt is not repaid. In that case the money comes from the lenders and bond-holders and they never get it back. And the shareholders also lose everything in that scenario, of course.
Re:End Stock Buybacks, Save the Economy?
by longtermsec on Thursday August 23, 2018 @09:26PM
(#17832063)
The money for the interest payments comes from taxes!
Industrial Bank is #20 at $144k. That means that unless you work at one of the 20 companies on that list, your company is making less than $144k in earnings per employee. That profit is then taxed, and only a fraction of that is returned to shareholders, with the rest re-invested in the business.
So there's no way it's often hundreds of thousands.