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How can you possibly argue against the idea? Look up the profits of corporations and what their CEOs are getting. Trickle down, my butt.
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On the inflation front ...
- Thread Starter gmerkt
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How can you possibly argue against the idea? Look up the profits of corporations and what their CEOs are getting. Trickle down, my butt.
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I preferer "Voodoo Economics"
ETA: Just hit me that that was so long ago some of you will likely need to talk to your grandparents!
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To me it is just a kneejerk, or a cheap way of trying to gain support from people who blame everyone else for their dissatisfactions. There is a reason why executive compensation is high. People who aren't adjacent to that rarely understand why.
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I would like to hear more, if you don't mind. I can see why a guy would like to have money for a new Lincoln, but what CEOs make is obscene. I guess they can do it though, thanks to the American way. And lawyers, lots of lawyers.
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Ive known a lot of CEO's . Some were OK, some were douches to the 10th degree. They always kind of remind me of doctors. Similar levels of education and a lot of serious internships and jockeying for position. If anyone thinks their jobs are easy, they arent. Weight of the world sort of thing and its not the sort of thing that lasts a long time . Real cut throat stuff. No thanks. The money isn't worth it.
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Some CEOs have absurdly low "official salary", and write rest off as "donations/gifts"
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Or maybe someday even as "tips" depending on tax code changes
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Seems to me regardless of what happens to a company or its emplyees the CEO's have thier golden parachutes to fall back on.
I do the same, except I don't have the "donations/gifts" part.
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I don't think what they make is obscene. People who can do that deserve big compensation. Just like goood cardiac surgeons. And they give up their life for it. Some of them are teflon psychopaths, but most aren't.
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I have a saying:
"Don't get mad at the dog for getting into the garbage. Get mad at the person who left the garbage where the dog could get at it."
Corporate CEO's are just the garbage-eating dogs. They do what is best for them, given the circumstances. The real problem is those circumstances.
When I was young, long ago, most big corporations shares were held by wealthy individuals or families. These shareholders would use that power to put representatives on the Board of Directors to look out for their investment. Most were invested for the long haul, an insisted that the company be run to be profitable into the future. CEO's made reasonable money, and stayed with companies for entire careers.
The advent of IRA's and 401(k)'s changed that. Vast amounts of money poured into the stock market from these sources, and much of it was funneled through mutual funds or investment companies. I'll call these "Money Managers." Money Managers have one goal - maximum returns on investment.
Dividends get taxed twice, once when the Corporation takes the profit, and again when the shareholder gets the dividend income. This makes dividend-paying stock less attractive. Add to this the fact that growth of stock value isn't taxed until it is sold (or not at all, for Roth IRA investors), which makes "growth" stocks more attractive to Money Managers. Money Managers do not invest in companies for the long haul, but regularly move the investments to better-performing stocks. This creates an opportunity for CEO's to get into the garbage.
It has become common for CEO's to manage companies to increase stock values. The reason is that compensation is generally structured to encourage this. The shareholders (through the Money Managers) are rewarded well, despite the huge CEO compensation, so "everyone" comes out ahead, except most of the employees, and customers who get lousy products. But there is a sinister side to this.
CEO's look at companies as rungs on a ladder to even greater power and wealth. They don't expect to remain running a company for decades, or until retirement. They expect to move onward and upward within a few years. Why set up the company for long-term growth, if they can make a temporary surge in stock price and leave before the eventual cost has to be paid? For instance, cut research and development costs so the products become outdated and lose market share in a few years. Take the savings and buy back stock, which increases the value to current stockholders. There are other tricks that have a similar effect. Put this success on your resume' and move up to another, higher-paying, company. Let your successor deal with the eventual problems, and let the Money Managers move their investments to better performers when the chickens come home to roost. I call this strategy "Pump and Jump."
There is another, even more sinister, side effect to this. When stocks (and other investments) trade, there is a seller and a buyer. A "party" and a "counterparty." Savvy investors are always looking for a counterparty to dump their soon-to-be declining stocks on, because they want to sell before the price drop. While there are plenty of suckers out there to be counterparties, there are not enough of them to settle all these trades. Someone has to step up and buy some of these soon-to-be-declining stocks. Who could that be?
There are several types of savvy counterparties. Hedge funds have figured out how to make money on falling stocks. Some shrewd investors need losses to offset other income. Money Managers have room to buy some because they use falling stocks to offset profits, and their mass-market investors will accept total returns below that of shrewd investors. Where most of these stocks go? You guessed it! The big players, Money Managers. The little guy.
"Don't get mad at the dog for getting into the garbage. Get mad at the person who left the garbage where the dog could get at it."
Corporate CEO's are just the garbage-eating dogs. They do what is best for them, given the circumstances. The real problem is those circumstances.
When I was young, long ago, most big corporations shares were held by wealthy individuals or families. These shareholders would use that power to put representatives on the Board of Directors to look out for their investment. Most were invested for the long haul, an insisted that the company be run to be profitable into the future. CEO's made reasonable money, and stayed with companies for entire careers.
The advent of IRA's and 401(k)'s changed that. Vast amounts of money poured into the stock market from these sources, and much of it was funneled through mutual funds or investment companies. I'll call these "Money Managers." Money Managers have one goal - maximum returns on investment.
Dividends get taxed twice, once when the Corporation takes the profit, and again when the shareholder gets the dividend income. This makes dividend-paying stock less attractive. Add to this the fact that growth of stock value isn't taxed until it is sold (or not at all, for Roth IRA investors), which makes "growth" stocks more attractive to Money Managers. Money Managers do not invest in companies for the long haul, but regularly move the investments to better-performing stocks. This creates an opportunity for CEO's to get into the garbage.
It has become common for CEO's to manage companies to increase stock values. The reason is that compensation is generally structured to encourage this. The shareholders (through the Money Managers) are rewarded well, despite the huge CEO compensation, so "everyone" comes out ahead, except most of the employees, and customers who get lousy products. But there is a sinister side to this.
CEO's look at companies as rungs on a ladder to even greater power and wealth. They don't expect to remain running a company for decades, or until retirement. They expect to move onward and upward within a few years. Why set up the company for long-term growth, if they can make a temporary surge in stock price and leave before the eventual cost has to be paid? For instance, cut research and development costs so the products become outdated and lose market share in a few years. Take the savings and buy back stock, which increases the value to current stockholders. There are other tricks that have a similar effect. Put this success on your resume' and move up to another, higher-paying, company. Let your successor deal with the eventual problems, and let the Money Managers move their investments to better performers when the chickens come home to roost. I call this strategy "Pump and Jump."
There is another, even more sinister, side effect to this. When stocks (and other investments) trade, there is a seller and a buyer. A "party" and a "counterparty." Savvy investors are always looking for a counterparty to dump their soon-to-be declining stocks on, because they want to sell before the price drop. While there are plenty of suckers out there to be counterparties, there are not enough of them to settle all these trades. Someone has to step up and buy some of these soon-to-be-declining stocks. Who could that be?
There are several types of savvy counterparties. Hedge funds have figured out how to make money on falling stocks. Some shrewd investors need losses to offset other income. Money Managers have room to buy some because they use falling stocks to offset profits, and their mass-market investors will accept total returns below that of shrewd investors. Where most of these stocks go? You guessed it! The big players, Money Managers. The little guy.
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Sub-$3 gas is making a comeback. Dozens of states could be below $3 by Thanksgiving | CNN Business
The oil market is in another tailspin. OPEC+ is scrambling to stop the bleeding. And gas prices are falling fast – with more to come.
amp.cnn.com
This will be just in time for a series of fall cabin property trips, assuming work remains relatively slow.
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I got 2.7 gallons of fuel for $10 today. Inflation seems to be heading in the right direction.
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I'm seeing 2.55 here
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3.75 here and that's at Costco
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Where art thou @bolus ?I dont eat bread anymore but it is $13.39 a loaf for the basic Loves white in Hawaii.
A loaf of bread for $13.39? Sticker shock spurs formal complaint from lawmaker
A loaf of bread for $13 triggered this councilmember's ire.www.hawaiinewsnow.com
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3.05 at Towne Pump, Albany
The "younger generations" would be happy to buy a home at all, just to get their foot in the door before that door shuts completely. Even the bargain bin houses are close to out of reach
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Even manufactured homes and mobile park spaces are getting up in price for less value, and it seems more and more real estate corporations and investors are buying up mobile parks and raising rents
Mobile home rent increases skyrocketing as corporations take ownership
Rent in the U.S. is up over 20%, according to rent.com. Mobile or manufactured homes have historically been one of America’s most affordable housing options, but now investors are buying mobile homes parks and jacking up the rent.
www.foxbusiness.com
Investors are buying mobile home parks. Residents and governments are pushing back.
Amid an affordable housing crisis, some states are looking to help low-income residents stay in their homes by helping them purchase the land their manufactured housing sits on.
www.route-fifty.com
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There is plenty of work in the trades and they pay well. The only thing is you have to be when and where they tell you to be. Learn a skill and don't try to make a living wage off from minimum wage.
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