Lol

Just what I was thinking lol, all the airlines are on the verge of bankruptcy and could have had more emergency money on hand if they didn't blow it all on stock buybacks.

Also, many companies used previous "bailout" money for stock buybacks. The economy would have been much better served by giving money to the poor and middle-class, demand-side stimulus, so there would be demand for products making it worthwhile for businesses to make investments. Without the demand, buybacks or parking the money in the bank were the businesses' only real options.

Exactly what I thought after she said it

@@Felddagryph No, with buybacks the money goes to shareholders. Many of which are the middle class you are referring to

Marius I RIGHT. Smh. Atleast stock prices are worthless right now. Easy to make money later

Not really ironic. It's being recommended because lots of people are searching for it.

Why do you think so many CEOs jumped ship?

This is not ironic at all... As news of bailout being tied to buyback is coming out, many people search videos on what buyback means and the youtube algorithm tags the topic to show up in recommended videos

Not a bailout. Unlike 2008, where companies were bailed out of its own mistakes, the government has forced business to shut its doors. This is relief due to intervention into normal markets. Necessary intervention. But not a bailout. If I take a sledgehammer to your your vehicle......paying for the repairs is not a gift. It’s retribution.

It's always inspiring to hear from a veteran investor who has weathered the storm and come out on top. When your portfolio turns from green to red, it might be unsettling, but if you have invested in great companies, you should just keep adding to them and stick with your plan.

@@McElvinn I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years.

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Good call! The construction industry has an incredibly hard time in taking in skilled labor. It takes years to have a fully trained tradesman from within. In my case, the majority of professional tradesman were there for ten or fifteen years. We rarely see someone stay the first year because of the physically demanding nature. Licensed trades like HVAC, electricians, and lineman are losing a lot of seasoned workers within the next 10 years. The US is scrambling to find professionals as is.

Yep, demographics are also shrinking, corporations still falsely believe that the labor shortage will go away, it's only just beginning. Automation won't save them either.

@@richardwieder885 that's a different trend. Most millennials or Gen Z don't want to work in the labor intensive industry when there are other platforms to make a liveable wage.

@@sarfrazahmed8178 The thing is not everyone is smart enough, sociable enough, competent enough and clean enough to do the types of jobs they think they are entitled to. I see it all the time in my line of work, my company opens the door to anyone who can talk on the phone and pass a test, we pay 50k for licensing, literally giving these kids what they think they want, and yet they still leave after a year because "work life balance". Most millennial and gen z are perpetually unsatisfied due to the subversive idea of self esteem entering collective consciousness. Every fleeting thought is valid, every impulse and every whim is just, and every opinion is warranted in their minds. I love watching them break down crying realizing they are fundamentally broken, then they leave and either retreat to the basement communist tier or go work 3 minimum wage jobs because it allows them to coast. Not everyone can work a white collar job, but everyone thinks they are better than blue collar, and when they realize they aren't, they are mad at the system when really they should be mad at themselves

@@alexanderbankowski5617 ok boomer

Yes. Boeing is the great example of it.

Gabriel Calderón There are few rivals because companies were allowed to buy out their competitors. The executives don't care because they won't be around when the company goes under.

Short term wizardry > long term vision.

DaG life Wow you are really spamming that referral link aren’t you?

Gabe Shakour can u tap the link and sign up I don’t think u well 😂 it’s cool if you don’t but don’t know nobody hustling game lol 😂 peace and love good vibes only bro bro

I've been investing with TERESA JENSEN WHITE's guidance for a few years and I couldn't be happier. Her company has given me the best ROI while preserving my capital and has the most thorough investment guidance out there. It also never burns my money with speculation or poor philosophies of risk management.

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Terisa Jensen stole from me.

Aged like milk

I was coming to comment this lol

I wonder how many poor Conservatives are still claiming "small Government" and "let the market decide"? We're basically spending tax dollars and risking inflation to bail out companies that failed to save money for a rainy day, all because they were more interested in propping up a fake financial image.

@@chrisjfox8715 it is stupid to think that people would recommend the same policies in normal time as they would in extraordinary times (such as when government asks a third of companies to stop producing in order to protect people's health). And if you think the rules of business should be the same in extraordinary and ordinary times then you don't understand much about economics. Companies and their shareholders shouldn't be punished because they are stopping their activities to help a worldwide effort: they should be helped.

They can sell all those precious shares they bought back to the federal government whenthey need a bailout

yoshi101 You never want companies saving money. It’s better for everybody if the company distributes that wealth.

@@sliickers its better for the economy if they dont do buy backs while going into debts

sliickers - Pretty sure you don’t want companies going out of business either, and that’s what strict free market capitalism would have them do right now without any cash reserves.

@@kinghassy334 Well no, not exactly. They are giving money back to investors with buybacks. The investors can use that money for more capital investment, boosting the economy. It also increases the companies earnings, which they can use to expand or upgrade their business. Most companies don't do this however

@@sliickers :D :D :D You are awesome!

Nargis Hoque they knew

Funny thing is on this was illegal until Reagan made it legal again. Somewhere between the 1940s and 1970s it was illegal to do stock BuyBacks because of the fact that the companies weren't giving back to their employees until it was essentially made illegal and created the great economic boom between those times and made affordable cost a living a real thing.

Sykotik Shadow oh wow that’s interesting, thank you for sharing!

@@nargishoque6007 check this out. kzfaq.info/get/bejne/r9J8h7CK2ZiYnHU.html and along with the lowest percentage interest rates we have ever seen it's making it easier for people who have money the rich stay even richer and not invest into these companies that they buy and sell off for more profit then when they bought it. Essentially the world's economy will go bust.

@@SykotikShadow The real reason was lack of foreign competition for a brief window of time post WW2.

@Red Divinity I too love speculating in the comment sections of KZfaq videos

Red Divinity this is not at all what it is hahaha

Exit strategy! 2008?

Disguised insider trading

Selling shares has lower tax rate than getting dividends because it's based on proportional capital gains. This is why investors love buybacks and sell shares over getting dividends.

How do you feel about dividends?

Jeremy 😂😂😂

Also makes the executives’ stock options worth a lot more

@@INeedMySpaceTech dividends drop stockprice, not increase it

@@vinaymane5538 his point was that it doesn't grow the company either

Manipulate? If that's what you want to call it, but it's not like the effect isn't real. No matter how you increase the EPS, it's still increased. As a shareholder I support buybacks.

It’s their money, they can do what they please with it. Every company manipulates their stock, it’s part of the game

barebearburiesbarrysberries no, wealth taxes have never worked in history. If you want a strong middle class you need a strong currency. Wages don’t keep up with inflation so weaker dollar means asset prices inflate and the rich pay off their debt quicker than a regular ole joe. It’s a sick game they designed, we just have to play it and take over

Keoni Mana that’ll never happen until we see a full on revolution. But I do agree, it’s the only fix. We need a hard reset on this economy

Manipulating in the sense of decreasing price fluctuation. Just a smart way of getting rid of unused cash.

It's funny how this video doesnt mention a company has the option to raise wages for its worker as a reward for thier hard work at 1:24. Corporate media is so subtle.

@@kinghassy334 pretty incompetent of the corporate shills to forget to omit higher wages from their Chuck Shumer quote at 3:27 isn't it?

@@kinghassy334 please stop pretending you have any understanding of the economy or business while at the same time being a Bernie Bro.

Easy formula really, buyback and drain ensuring at anytime the company has only $5 worth of gas in the tank....crises will hit once every ten years, and governments will bail you out aka stimulus...this cycle repeats once a decade and each time the ordinary taxpayer is used as a wedge to normality via high taxes, low wages, higher cost of living etc etc.

Can someone explain why they were illegal and why Reagan made them legal?

No the problem with buy backs is that a companies leadership is judged on stock performance and buybacks are an easy way to goose them divides have no such moral hazard, then again I also support banning leveraged buyouts for a similar reason

Teringventje It rewards a company for doing NOTHING of value to the economy. Of course it should be illegal. Company’s started to become corrupt beginning in the 80s, when these became legal

Teringventje By nothing, I mean that it encourages companies to increase stock prices, which the vast majority of Americans have no stake in, rather than anything that actually improves their products or services.

Teringventje And shareholders have little to no value to society. Stakeholders do. This benefits nobody but shareholders and execs and doesn’t even ensure the stability and longevity of the company in the long term. Overall, it promotes short term profit at the expense of long term prosperity

but it does trickle down. Unemployment is at lowest rate in decades.

@@joshn2342323 Look up underemployment.

@@joshn2342323 sorry what was that?

@@joshn2342323 it all implodes when people are focused entirely on short term gain with stock buybacks. Here we go again. Another goverment bailout for all of those "saavy" businessmen.

I noticed that as well.

Thats called salary

Just look at 3:30! Do not speak if you don’t watch thé video until the end !

If a company goes bankrupt, no employee will bail the company out.

owners of the company earn theirs "wages" in the form of share buyback. Nobody will own stocks of they will not be compensated for that - people will buy cars and houses instead of stocks and there will be no jobs for workers.

Aquí en México ya tampoco quieren invertir, ya todos se van para Indonesia :(

@@arcodax3302 Que lastima.🙁

You mean china,,there is not such a thing as Investing in Mexico anymore. Producing in china is way cheaper than in Mexico nowadays.

@@ricardoramos3754 China relocate low skill to Vietnam and other neighbor countries.

Just so that Karen doesn't have to spend an extra dollar or two...

That would be socialsm!!1

@@epzilon1 A company using their money to pay their employees a higher wage? That's socialism? LOL

Those evil corporations!

How about that money is completely worthless, only artificial numbers. If we went back to gold standard there would be more wealth circulation, and the middle class wouldn't look like a finished apple.

@@911aaron Giving people higher wages would just increase the prices of everyday items and food. This is how it's been since the 60's, gradual increase in minimum wage, but massive profit growth on their companies. See more regulations really just hurt the small business owner which hurts you.

It's their money and flipping a hamburger isn't that hard

That's not how economics works. Employee compensation is a function of the labor market, not how much cash the employer happens to have saved up. Companies do not exist for the purpose of employing workers. That would be make-work.

Companies only pay employees what they are forced to. That is the definition of capitalism.

@@johanocampo5422 I guess you have never recieved a messed up order? Flipping a hamburger is very hard. Go get a job at a fast food chain. I bet they fire you in a week.

Employees getting paid according to the value they bring to the market place. That is Capitalism...

Depends if they just diluted the shares out again with options for execs. GE was doing huge share buybacks before they went down. They could use all that cash now and do the same buybacks for a fraction lol.

What you profit from today you'll have to pay for tomorrow. The biggest bubble in history will eventually pop and it will take a long time to come back from.

lol building castles in the air. remember, nothing comes for free.

It's all temporary because the corporation winds up in massive debt from the buybacks then will not be able to service the debt and then goes under like Sears, Kodak, GM...

Ray Bod Sears Kodak & GM (GM shouldn’t even be on your list) didn’t go under because of “debt”, they went under because of competition. These “buybacks” (in this example) we’re executed with “stockpiles of cash”, 1:20 not lines of credit.

Cool, I had no idea. I'm fairly sure we don't have that in Sweden, despite our systems being more similar to each other than to the American system.

@@lindhe it exists - "Arbetstagarrepresentant". Though, it's not a requirement to have.

That's why Germany has so many benefits, jobs and companies.

Hasn't Germany been on the brink of recession for a while?

and the video should be those 10 seconds, thats it.

Bailouts with what? It's not like the government currently has the tax revenue for it.

good call Trump is already lining it up for them again in the energy sector . everyone in the working class should be getting their torches and pitchforks ready

Spot on Hugo things are looking worse everyday.

you literally predicted the future

Issuing shares AFTER a crash won't net a whole lot of profit.

Because politicians are totally corrupt.

Chainsaw Aardvark Cause Merica

How _would_ it be? I don't think you understand the practice

@bigbrotherau05 They didn't omit it. It's right there from 3:20 where they said that Chuck Schumer and Bernie Sanders pointed out those same issues you mentioned. And by the way, it's not WSJ's argument that the profits should go to shareholders, they are just pointing it out that it is the argument companies used to justify share backs.

what you mentioned is deducted as employee cost before profit, it's not the profit.

Very True. Financial freedom is all about taking ownership of your own finance, having a dependable cash flow flow that allows you to live the life you want. Not worried about how you'll pay bills or sudden expenses.

Stock trading is a surefire avenue to generate passive income en route to financial freedom.

I've earned over $100k in the last 4 months and i'm looking to diversify by getting into rental properties

Smart idea, i do not have the temprament to go into the stock market now. I do not want to get burnt, we need a UNIVERSAL BASIC WAY to ensure FINANCIAL FREEDOM!

Getting burnt entails not taking the right steps before engaging the markets. If you're considering investing the stock markets in a bid to build your wealth you'll definitely require some professional insights

What happens then

@@AliA-by2ju the company bought it's shares at let's say 1000$ a share. Then the market plummets (600$) and this share can't be sold at the same or higher price. It's a net loss for the company (1000$ - 600$ = 400$ loss). Basically corporations gambling their own profit. I'm sure the board members were betting the prices would continue to rise and they would sell their own stock for extra profit. The bad thing is investors thought they were buying quality stock, instead it ended up being just junk stock. And that's from big corporations which were estimated as low risk investment.

@@lamcho00 thank you

Zeitgeist

Yeah!! This period of time is right.

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You actually expect unbiased reporting from a paper called WSJ?

Fernando D if you had seen the video until the end, you would have seen that they talk about higher wages and retirement benefits

3:30

It's called Salary.

Yet when we say the government should use spend that money on treatment for diseases those companies cause we get called entitled lazy and "stealing from the successful'

Exactly

Look at the airlines now 🤷🏾‍♂️

How arrogant of you to say. This has been discussed and largely agreed upon by people who's say no longer seems to matter...that's you and I

There's nothing artificial about it

Kevin Kang already there bro, stock price goes up, up and up!

Companies don't buy back shares for more than they are worth on a P/E or P/B basis (company Boards would not let that happen as they don't want to be sued), so buybacks can't over value a company. Only ignorant investors, like those who own shares in Tesla, a structurally unprofitable company, create overvaluations.

The argument is that dividends are taxable while the buybacks are not

@@wallacewoodworks9582 but buyback is on paper, no money flows to the stockholder. Dividend is real money to stockholder. Buyback is used to inflate or prop up share price so the execs get bonuses

will liam oh I agree, I would prefer the dividend personally. Just sharing the case for buybacks :)

No, that's correct. That's one of the major reasons companies do it

@Combatant Analysis i would for sure!

Why is your letters fat?

PRESIDENT - He bolded them

@@theradicalaxe553 No, because he is black and fat.

@@president-8253 why racism on such a topic ?

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James they could just issue more shares without buying back

MORSE Don’t you have to pay capital gains tax when you sell the shares (in the buyback) which would include the premium above the market price that is ordinarily offered in share buybacks?

No, they get their compensation package, same as before

Lol there are always people and brokers selling shares on the open market.

Bailouts aren't an option for most companies. The Feds only use them on companies they believe will cause suffering if they fail.

I would imagine that they won' invest it into the company whose shares they just sold.

@@Tamperkele So? If it's not the most productive use of their money, then they _shouldn't_ reinvest in it.

@@PrezVeto Of course, but selling the stocks isn't the problem here. It's when firms choose to buy back their own stocks instead of investing that money back into the business.

Your comment is pointless. Nobody said that fool. You aren't clever

There’s nothing I love more than ETFs, investing the least in it is better than waiting on this wrong government manipulating everyone, kudos to your hardwork.

How can I get to learn and understand how to go about this more? Can you help out

You can look up videos on KZfaq and use google but I work with a trade analyst Eddy Bruke. You can also look him up if interested. Connecteddybruke@gmail,

loser. What a boring life

Way to go! I hope you’ve had more profits by now. Cheers

So employers are not obligated to pay employees? Didn't know Milty advocated slavery too..

Yup it's gonna happen again and I Will be here benefitting from it :))

Magix why’s that

@@andrewd9387 house prices go down and and People need to sell The house to not go bankrupt and im here to buy that house reqlly cheap and sell it expensive 10 years after

@@magix4152 it's nice to look at it like that but your pfp suggests you aren't a Mr money bags real estate investor

@@PixelBoyMiner i like how u can see All of those things just from a profile picture :)

Alcohol was also once illegal. Is a documentary about alcohol a "whitewash" for not mentioning the reasons of the temperance zealots?

@@PrezVeto Slavery was once legal . . . does that mean we should go back to a bad idea? Of course not! Because in an honest wholehearted analysis, ALL the moral and ethical implications are addressed. Nothing is left out, or whitewashed.