Here's A Question

It works until it doesn't I guess.

 

If you follow JeffMacke over on twitter, he's been harping on buybacks and their ineffectiveness (to do whatever it was there were supposed to do) for awhile now.

Just this afternoon:

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She shold be trading penny stocks. She won't have to worry about dividends or stock buy backs!

 

Granny tried but after the 90's She got tired of soiling her britches.

 

Hot damn. Macke's still around huh? I'll check that out. I always liked him. Did cnbc fire him or did he just quit... way back when? He was the only one I listened to.

Thanks for that. Cool.

 

That's one way to look at it, but what if a particular bank goes bankrupt and ALL stocks go down. Does this mean NO ONE is doing their job?

 

%%
Good points;
actually that means capitalism + short sellers are dong their job. Even though- watch out for Liars like Putin of the ''evil empire'' he lied + said a bear market is a failure of capitalism.LOL-LOL

 

Let me correct myself. The objective of CEOs and board is to maximize shareholder value--not necessarily making the stock go up. This could mean 'just' ensuring survival in the event of a severe external environment.

 

Compared to what? It's tough to compare it to a different path when in reality we only realize one of those paths.

I personally am not a huge fan of buybacks and dividends as it is a sign that the company is running out of opportunities to deploy capital.

 

Don't belittle dividends. And dividend re-investment plans. GE is not running out of opportunities. Dividends are the reason we have markets in the first place, albeit that is no longer the case it would seem.

But I totally agree on buybacks.