Goldman Confirms By The End Of The Year Corporations Will Have Bought Back 1 Trillion In Their Stock

Discussion in 'The War Room' started by PEB, Aug 6, 2018.

  1. PEB

    PEB Atomic Butt Drop Champ :)

    Joined:
    Jan 20, 2004
    Messages:
    13,647
    Likes Received:
    10,532
    Location:
    SPACE THE FINAL FRONTIER :)
    Well so much for the rocket fuel that was going to drive companies into hiring more employees. As President travels around talking about low unemployment many are still not feeling it. In fact Goldman Sach announced that corporations have already used the tax break to buy back over 700 billion on their way to a trillion by the end of the year. This break was to generate new stimulus and create new jobs and companies would be buying new hardware. What is really happening the tariffs followed by questions about the long term health of the economy have driven companies into buying back their stock instead of investing it into new business.

    https://www.nytimes.com/2018/08/06/...rkets-next-1-trillion-milestone-buybacks.html

    "American companies are set to hand a record amount back to shareholders in the coming quarters.

    Corporate boards have authorized the repurchase of $754 billion of stock so far this year, up 80 percent from the same period last year, according to a Goldman Sachs report. And that figure could reach a record $1 trillion by the end of the year.

    The surge in buyback announcements is likely to stoke further debate about the $1.5 trillion tax cuts enacted late last year. The overhaul reduced the corporate tax rate to 21 percent from a high of 35 percent and provided a permanent break on overseas profits. The White House and congressional Republicans said the tax bill would encourage companies to make long-term investments and would provide “rocket fuel” for the American economy. Democrats argued the legislation would lead to an increase in share buybacks and wouldn’t stimulate corporate investments.

    So far the pace of hiring has picked up this year, though wage growth has remained stubbornly slow, and business investment in equipment increased more slowly in the first half of the year."
     
    Higus, Rod1, M3t4tr0n and 4 others like this.
  2. panamaican

    panamaican Senior Moderator Staff Member Senior Moderator

    Joined:
    Aug 18, 2009
    Messages:
    34,715
    Likes Received:
    30,835
    Hmm, it's almost as if this exact same thing happened last time.

    I recall something about insanity and doing the same thing over and over again, something, something, expecting different results. It's on the tip of my tongue. Damn, can't remember. :D
     
    Revolver, Higus, Rod1 and 12 others like this.
  3. andnowweknow

    andnowweknow The Giant On Whose Shoulders You Stand

    Joined:
    Aug 10, 2013
    Messages:
    9,809
    Likes Received:
    6,355
  4. Orgasmo

    Orgasmo Red Belt

    Joined:
    Dec 13, 2013
    Messages:
    9,336
    Likes Received:
    12,094
    Location:
    Vancouver, BC, Canada
    Don't worry guys! The more we feed the rich, the more crumbs will drop from their table to our plates.

    [​IMG]
     
  5. Edison Carasio

    Edison Carasio Excellence of execution belt Platinum Member

    Joined:
    Feb 13, 2007
    Messages:
    22,762
    Likes Received:
    51,338
    Omg y u hate rich people????? Y so jelly lib!
     
  6. BangersAndSmash

    BangersAndSmash Purple Belt

    Joined:
    Apr 28, 2015
    Messages:
    2,141
    Likes Received:
    2,834
    Exactly. Big business get restless because they aren't making enough profits, blames regulation for "stagnant growth". Government capitulates and deregulates the financial industry. Financial industry has unprecedented growth for a time, even though said growth is only felt by the richest companies and investors, then the ultra-risky speculation bubble bursts and ruins the economy for everyone. Public gets laid off, gets angry and demands blood, but Wall-Street deflects and accepts "new regulations" instead of getting punished. Economy returns to normal, people return to work, economy has stable growth numbers, but big business gets restless because they aren't making enough profits.....
     
    Rod1, TheWorm, helltoupee and 10 others like this.
  7. Cubo de Sangre

    Cubo de Sangre President of the War Room

    Joined:
    Mar 3, 2014
    Messages:
    37,507
    Likes Received:
    39,051
    Location:
    Hell
    Sounds good for the ol' 401(k).


    [​IMG]
     
  8. RerouteToRemain

    RerouteToRemain Silver Belt

    Joined:
    Sep 2, 2012
    Messages:
    11,601
    Likes Received:
    12,394
    Location:
    AZ
    Meanwhile wages adjusted for COL and inflation are down.

    [​IMG]
     
    Rational Poster, Madmick, PEB and 4 others like this.
  9. Ottawaguy

    Ottawaguy Gold Belt

    Joined:
    Oct 6, 2008
    Messages:
    17,279
    Likes Received:
    27,983
    Location:
    On my bike, or gone fishing
    Did Reebok get a tax break? Expecting UFC fighters to start rolling in dough anytime now.
     
  10. Trotsky

    Trotsky Gold Belt

    Joined:
    May 20, 2016
    Messages:
    16,912
    Likes Received:
    40,857
    It's so strange how these non-human entities legally required to pursue only profit keep making business decisions only in the pursuit of profit.

    I bet if we give them a bit more they'll share it with workers, though.
     
    Rod1, Quipling, Prokofievian and 10 others like this.
  11. deviake

    deviake NightwingBJJ Belt

    Joined:
    Jan 2, 2015
    Messages:
    7,119
    Likes Received:
    6,748
    Location:
    3, 2, 1, lets jam
    Big gubment is the problem, all these pesky regulations and red tape. The free market solves everything. Don't mind all the history to the contrary, if we just keep getting rid of rules and allowing the wealthiest people to contribute less and less, everything will smooth out as it always has when money and power in a society become concentrated in the hands of a few.
     
  12. Grenz

    Grenz Purple Belt

    Joined:
    Dec 12, 2015
    Messages:
    2,489
    Likes Received:
    3,957
    Location:
    Canada
    Wait a second here! So what this article says is that companies bought back their own stock instead of giving raises and creating more jobs?! Why would they do that??? It's almost like the only ones they're beholden to are the shareholders whose shares now increase in value. Business - who knew it was so complicated?
     
    Rod1, Cuzcatlan, phipps66 and 4 others like this.
  13. GSP_37

    GSP_37 Steel Belt

    Joined:
    Aug 27, 2007
    Messages:
    27,338
    Likes Received:
    10,395
    Location:
    Hawaii
    Should make a zero capital gains tax holiday to get them to sell a chunk and spend the proceeds on US of A goods and services.
     
  14. GSP_37

    GSP_37 Steel Belt

    Joined:
    Aug 27, 2007
    Messages:
    27,338
    Likes Received:
    10,395
    Location:
    Hawaii
    The accumulated corporate earnings belong to the shareholders. The stock buybacks reduce the outstanding # of shares and mathematically make earnings per share higher, therefore the stock should be worth more. The buybacks give the shareholders control over the timing of the recognition of their income (gain) via timing their stock sales for capital gains.

    If the corporations alternatively just paid a big special dividend, it's a taxable event and the shareholders have no control over the timing of that income recognition.

    If the corporations alternatively just gave out raises and bonuses, that doesn't help shareholders (business owners) because a lot of the employees are dumb and lazy and don't deserve more compensation.

    Is there even enough future business to warrant hiring more people, especially considering the trade war will fuck with business revenue?
     
    JonesBones and Grenz like this.
  15. GSP_37

    GSP_37 Steel Belt

    Joined:
    Aug 27, 2007
    Messages:
    27,338
    Likes Received:
    10,395
    Location:
    Hawaii
    You forgot to mention lazy and dumb unionized government employees who are inefficient and incompetent.

    One rich taxpayer pays way more income tax and property tax than many poor people combined. You could argue the poor are contributing less and less and consuming more government assistance. My cable bill and cell phone bill has fees and taxes used to subsidize or fully pay for poor people to have better cell phones than I have.
     
    usmctanker242 likes this.
  16. JonesBones

    JonesBones Excuse my contraflow

    Joined:
    Sep 28, 2011
    Messages:
    24,524
    Likes Received:
    9,752
    Location:
    New York
    You guys could, you know, buy shares in Goldman Sachs. Stop complaining.
     
    Cuzcatlan likes this.
  17. PEB

    PEB Atomic Butt Drop Champ :)

    Joined:
    Jan 20, 2004
    Messages:
    13,647
    Likes Received:
    10,532
    Location:
    SPACE THE FINAL FRONTIER :)
    It even gets better 30 million Americans will see that they have not taken enough out for taxes at the end of the year. IRS will be sending them a bill to make up the difference and this is specific in President Trump's tax break. That's right besides seeing their wages down due to inflation will also see that that they have not taken out enough and IRS will be looking for some more money.
     
    HomerThompson likes this.
  18. cincymma79

    cincymma79 Silver Belt

    Joined:
    Dec 15, 2013
    Messages:
    11,757
    Likes Received:
    7,901
    Make dire prediction
    everyone circles up to jizz on each other’s feet and scream maga
    Prediction doesn’t happen
    Repeat
     
    usmctanker242 likes this.
  19. Trotsky

    Trotsky Gold Belt

    Joined:
    May 20, 2016
    Messages:
    16,912
    Likes Received:
    40,857
    Would you feel comfortable telling that to a 50 year old woman working two cashier jobs for 60 hours a week to make ends meet, who hasn't the slightest bit of knowledge about stock trading?

    I'm not condescending. I'm genuinely interested if you feel that is proper advice to give to the working poor.

    Did.....did you read the OP?

    It happened. What literally everyone with an ounce of sense said would happen - happened.
     
    Rod1, TheWorm, Falsedawn and 6 others like this.
  20. deviake

    deviake NightwingBJJ Belt

    Joined:
    Jan 2, 2015
    Messages:
    7,119
    Likes Received:
    6,748
    Location:
    3, 2, 1, lets jam
    <36>

    The wealthy have all sorts of ways around paying taxes (not even getting into the massive tax cuts they just got), including buying politicians to get the policies they want. The poor are not to blame. Immigrants and poor have long been used to distract the working/middle class from the upper class taking off with all the money. We're seeing it right now. This strategy is as old as dirt itself and there's mountains of empirical evidence and history to back that up.

    Also, companies paying low wages and shit benefits increases the use of social programs. That should explain itself.

    This is well documented. There is no trickle down. There is trickle on, as in shaking their dicks on the rest of us. I could go

    d e e p e r

    but I don't care to take the time to do so. If you don't see it at this point then

    <Fedor23>
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.