GM plans to spend $10billion

[multigraincracker]

on stock buy backs in the next year. I guess the new contract is pretty affordable for them.
Got this from Michigan NPR site.

[Thunderbeast]

1. With the transformation of the industry...

General Motors can't think of ways to invest in research and innovation. Apparently the future looks like the sixties to them.

They will inevitably come back to taxpayers seeking another bailout, or cry that they can not meet energy or emission mandates.

You are watching an epic failure of management.

[multigraincracker]

2. All buy backs do is to

increase share price and dividends
Management that are compensated with stock options are the big winners. That’s money that could be spent on product improvement and upgrading plants plus research and product development.

[maspaha]

3. I think it was our pal Reagan...

And his cult that opened the door to compensation by stock option and company stock buybacks. It’s obviously a way to short term artificially inflate stock price to advantage those exercising options. Before the conservative godfather, the practice was either strictly regulated or illegal.

Of course I took advantage of these opportunities at my previous employer, but I always felt it was a little dirty. Less dirty when the company was privately owed by the employees, but filthy dirty once it went public.

We’ll talk hypothecating stock another day