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Zero companies receiving the bailout money are going to buy back stock with it. This whole charade is just a big feel good bit of nonsense for main street. Wha
by endorphone 7y ago
Zero companies receiving the bailout money are going to buy back stock with it. This whole charade is just a big feel good bit of nonsense for main street.
What people are complaining about is that previously these companies did buy backs. Boeing did buybacks (when they were profitable, though they cancelled them when the 737 MAX disaster began). The airlines did buybacks. Etc.
People are complaining that if these companies all sat on enormous war chests they wouldn't need help now. But that has never happened and will never happen like that because it would be ludicrously inefficient for the market at large.
- donavanm 7y agoDon’t forget that the total free cash flow returned via buybacks and dividends wouldn’t have been enough even if they had chosen for inefficient allocation of capital.