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Because buybacks in any other fashion only increase debt. It's the shareholders cashing out, so rather than a failed business with shares of $0 value, they hav
by happymellon 3y ago
Because buybacks in any other fashion only increase debt.
It's the shareholders cashing out, so rather than a failed business with shares of $0 value, they have money and the loans are someone else's problem.
- robertlagrant 3y ago> Because buybacks in any other fashion only increase debt. What about using revenue to buy it? You don't have to use (or have) debt to buy something with revenue.
- happymellon 3y agoBecause revenue is pure income without taking costs into account. So you could still be giving away money to cash out that is owed to someone else? If your revenue is based upon fictional income then these privatised public services will become tax payer problems because they can't be shut down.
- robertlagrant 3y agoI'm not saying that it's impossible that buybacks increase debt; I'm just countering your claim that buybacks always increase debt: > buybacks in any other fashion only increase debt.