by Henry Oliner | Apr 8, 2020 | Business, Economics, Politics
Generally, corporations avoid excess cash especially when it is low yielding. Their job is to generate cash and deploy it to generate a return on assets which with leverage becomes a return on equity. Using cash to buy back stock makes sense when you think your stock...
by Henry Oliner | Mar 25, 2020 | Business, Politics
Apparently, many people think buybacks are an inappropriate use of corporate funds and should be banned when receiving a bailout, which is part of the passed Covid Bill. I do not have a problem with that portion of the bill; buybacks are appropriate when you have no...
by Henry Oliner | Oct 27, 2015 | Economics
From The Wall Street Journal, The Fed Has Hurt Business Investment by Michael Spence and Kevin Warsh; During the past five years earnings of the S&P 500 have grown about 6.9% annually. As the table nearby shows the current profit picture pales in comparison to...
