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The National Economy is not their concern. Profits are.
It is supposed to be the politicians concern though to serve the best interests of the Nation, but
when The Big Multinationals fund their campaigns and you have thousands of Revolving Corporate Politicians as well in DC, the results are hardly surprising.
In this Global Economy, Emerging Markets is where the money is and they have purchased politicians to lead them there at the citizens expense.
It is really not a new thing either.
Some of the Biggest US Corporations funded Hitler's War Machine prior to WW2 and also sold Saddam Hussein Chemical Weapons among other things.
If we ever go to war with China, The Multinational Corporations favorite trading partner, they will also throw useful Americans into the fire to fight for them.
They will always sell out their country if there is a profit to be made elsewhere.
A lot of the Corporations moved to China in the 90's when the economy was good, but 10 million in profit over 1 million is even better.
When is it enough?
So, if YOUR boss offered you a RAISE, you would TURN IT DOWN.
"When is it enough?" What a stupid question. If you don't know by now, you never will.
pknopp, The F1000 earnings though, in aggregate, are at record highs, which means corporate profits overall are at record levels.
Instead of looking for doom and gloom that does not exist, enjoy this. It has been a long time coming.
No, I am not going to enjoy the government reinflating bubbles that are only going to pop.
A company owns 1000 shares of it's stocks. It buys back 1000 shares at $100. The government infuses the markets with billions of dollars and their stocks go to $150. They are showing a huge gain but it's not based upon any sort of solid fundamentals.
What is being discussed is the real economy and differences in stock market percentile increases among companies in the same industry tend to differentiate who is doing better or worse in the real economy.
No it isn't. It is asking why aren't the companies that are doing well investing back into the fundamentals of the economy.
ie: expanding, hiring, etc. And that is because there is no reason for it. There is no need not being met. If the economy was booming as well as the stock market all of this would be happening. The Wall Street boom can be contained within a computer.
Those who thought that companies out of the goodness of their hearts would hire people they do not need because the government filled their accounts with money are fools.
Doing more, with less, would actually prove the economy isnt recovering, since these individuals dont have jobs and thus not able to contribute to the economy.
I agree. The economy is plodding along while Wall Street is booming. In a solid economy with a good foundation those two things do not happen like that. Not only are businesses doing well because of the Wall Street boom, they are also using this time to cut back because they know it can't last.
Actually, that $100 that you pay for the stock is invested in the company. You become a part owner of the company.
While you are buying an ownership interest in the company, that $100 you pay for the stock, the company doesnt see a dime of. That money goes to the seller of the stock. The only time the company sees any money is if its newly issued stock, which then dilutes your ownership interest and causes stocks to normally fall in value. The company/owner, divested their initial ownership during the IPO.
Quote:
Originally Posted by nononsenseguy
Selling shares of stock is how a company raises money for expansion.
Actually no, selling shares of stock is how owners of companies divest their interest. Bonds are how companies raise money for expansions. Buying into a stock already previously on the market doesnt give a company any money at all.
They can issue new stock of course, through IPO's but that actually causes stocks to usually fall in value, not increase.
And the question is, why are they not expanding with the money rolling in from the record rise in stocks? (I've already addressed the question)
Because the company doesn't see the money from the continuing sales of stocks. The company sold their ownership during the IPO, so when a stock transfers again, that simply changes who owns the stock. There is no money going to a company during a stock transfer unless the company itself is issuing new stock, which would dilute ownership interest and normally cause stock values to fall.
If you buy an IPO and pay $100 a share, this sell out puts the company on the stock exchange, but this $100 goes to whoever owned the company, (like Bill gates)
I then buy that stock off you for $10,000 a share, this simply means the company overall value is now 100 times what it was, but that $10,000 goe sinto your pocket, the company itself doesnt see a dime of it.
So while the stock market would skyrocket, this doesnt give the companies any new capital, it simply moves the money from my pocket, to yours, which doesnt increase the economy either since we're just changing who's holding the cash.
Because the company doesn't see the money from the continuing sales of stocks.
Yes, on my part it was a simplistic statement. In the big picture you are right but companies do many times own large portions of their own stocks.
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