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Boeing is like most big companies part of the capitalist system where shareholders expect an annual rate of return of 5 to 8%. Every company that does not deliv
by mo_42 3y ago
Boeing is like most big companies part of the capitalist system where shareholders expect an annual rate of return of 5 to 8%. Every company that does not deliver this rate will fall out of the game.
Some of the shareholders are completely innocent people like some family who's saving for retirement via an ETF. It means that if Boeing is not growing at the rate of other companies, it will fall out of some stock market index and hence the ETF. Before that, it will probably be removed from many other portfolios that are managed by people directly.
Both sides of the game are people trying to do the best. If the managers decided to invest heavily in the next years and make losses, they'd be kicked out of that position and replaced by some who continue running this game.
I think politics is the only way out of this. It won't change until people can convince politics to regulate some areas more strictly or putting higher penalties on some mistakes.
- renegade-otter 3y agoMany of these vultures would be heavily cuffed if stock buybacks were curtailed, as they were a long time ago. Once you get a vulture in who is there for the quick returns rather than for what the job should be - growing the business - it's all over.
- whiterknight 3y agoCounter example: there are companies in the S&P that are not disasters and have good careers.
- NotYourLawyer 3y agoBusinesses exist to make money. Stock buybacks and dividends are the only reason the company was ever funded.
- thedoctor79 3y agoI don't know if this comment is satire or not, but I thought the company existed to provide a fast and (relatively) safe means of travel over long distances to people. I guess the old engineering adage applies here too: fast, cheap, safe, pick any two.
- NotYourLawyer 3y agoNo, that’s just how the company makes (made…) money.
- aaomidi 3y agoStock buybacks weren’t always legal.
- NotYourLawyer 3y agoCall it dividends then. Same thing but different tax treatment.
- eastbound 3y ago> Boeing is like most big companies part of the capitalist system where shareholders expect an annual rate of return of 5 to 8%. Boeing is the most governmental company there is. They are heavily subsidized, for example to “create jobs” in poor areas where social peace is needed (and I’m only talking about massive incentives they pocket from local governments, not even starting on defense contracts). That frankly means they hire factory workers going in and out of prison. As you may imagine, those are not the best employees. If an airframe is cut at the wrong place, they still put it in the plane, leaving gaping holes representing more than 50% of the extruded structure (it had happened in 2013 on …80 planes). > I think politics is the only way out of this. Boeing keeps receiving subsidies from politicians. It’s the exact opposite of a private company, it’s the symbol of why meddling politicians with USA jewels ends up as an eagle’s fest. The FAA seems to be bribed all the time. At the same time, it’s a giant geopolitical asset to project the power of USA onto the world, which is why it’s protected from any inquiry upon its corruption. Partisans are always prompt to blame it on the stock exchange and speculation and claim it should have more ties to the political powers that brought it there. American politics will not do anything about it. If anything, I can only see the EU forbidding Boeing planes from EU soil that would begin to solve the situation. Heck, USA should forbid Boeing planes from USA soil.
- jimnotgym 3y ago>Boeing is the most governmental company there is. They are heavily subsidized, for example to “create jobs” in poor areas where social peace I thought Boeing received subsidies to keep it alive, because it is in a strategic war industry? I thought the social stuff was a side effect.