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alstry (36.12)

And The Ponzi Scheme Continues......

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April 12, 2010 – Comments (13)

Lowe's borrowing $1 bln, partly for stock buybacks

Borrow money to buy back shares.....and insiders are selling?????

Remember the days when Warren Buffett used to comment on topics like this......

Keep watching the ticker......tick, tock, tick, tock.....

Delinquent Loans up 21.3%

Tax Audits of Big Business Are Declining 

Interest Rates Have No Where to Go But Up

If you havn't figured it out by now........it doesn't change anything;)

 

13 Comments – Post Your Own

#1) On April 12, 2010 at 5:30 PM, alstry (36.12) wrote:

By the way, only part is going to buy back shares....the rest is going to pay executive salaries.......as your pension funds get raided again and you keep watching the ticker......

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#2) On April 12, 2010 at 5:51 PM, alstry (36.12) wrote:

More and more taxpayers evaporating before our eyes.........and so few care????

Cargo carrier Arrow Air May Cease Operation At its Miami Int. Airport Operations - 473 Layoffs

The Arlington Developmental Center - 183 More

I guess just Wall Street and Washington are where the easy loans are....especially if it is from your retirement account.....

College Graduates Struggling to Obtain Personal Loans

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#3) On April 12, 2010 at 6:04 PM, TLassen (61.13) wrote:

alstry.....And The Ponzi Scheme Continues...

pls explain why Lowe's borrowing 1B is a ponzi scheme. A ponzi scheme implies criminal intent are you suggesting this is the case here??

There are only two ways for companies to raise investment capital, through debt or equity; here they are going to use debt issuance (bonds or other obligations) to buy back shares. All that implies is a modification to it's capital structure, nothing else. Fail to see Ponzi scheme here. Please enlighten me.

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#4) On April 12, 2010 at 6:12 PM, alstry (36.12) wrote:

Last year government and Wall Street borrowed over $3 trillion dollars....ostensibly from our retirement/pension/and investment accounts.

If that money wasn't borrowed, our government and much of Wall Street would have gone bankrupt.  Madoff worked so long as he could raise capital and pay earlier investors.....not through earnings.

Washington and Wall Street have become not too different, the only reason Wall Street executives and government employees get paid is primarily from the proceeds of borrowing and not from productivity.

And when the game is borrowing and not productivity....any distinction from a true Ponzi Scheme is really one without a difference.

Why do you think practically every pension plan is underfunded and every city, county and state is running out of money......

I promise, one way or the other, you will understand very soon.

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#5) On April 12, 2010 at 6:29 PM, alstry (36.12) wrote:

There are only two ways for companies to raise investment capital....

Actually there is a third....and the only reason why we should invest in equities for the long run.....EARN IT!!!!

And since very few companies are earning money these days in the traditional use of the term....Wall Street and Washington are siphoning money from our retirement accounts to pay high salaries as the private economy in America shut down!!!!

Right now, tax receipts are so low due to so few working or so many earning much less....it will not be much longer before the nature of the game is revealed.

Budget Problems Building in Buffalo NY 

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#6) On April 12, 2010 at 6:46 PM, TLassen (61.13) wrote:

"Actually there is a third....and the only reason why we should invest in equities for the long run.....EARN IT!!!!"

nah sorry that's wrong. Investment capital is only RAISED two ways as I explained......what you refer to is profits of this investment capital. Employing investment capital to make profits is the name of the game in capitalism.

" Right now, tax receipts are so low due to so few working or so many earning much less....it will not be much longer before the nature of the game is revealed"

The operative word is 'right now'. As the economic outlook brightens tax receipts will increase, consumer spending by the 90% or so employed will improve thus creating demand for product and services resulting in creation of jobs, remember this is how jobs are created...and yes you will pay more taxes!Not the firs recession we have been through and won't be the last. 

In any case, please explain the Ponzi scheme element. Still don't see any criminal intent anywhere. This is how Capitalism works....

 don't wanna pick a fight with you, you sound like you need some cheering up :)

 

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#7) On April 12, 2010 at 7:09 PM, alstry (36.12) wrote:

Less than 50% of the population is employed...and that number is dropping rapidly as more and more lose jobs and others age.

Trust me on this one, absent a devaluation of currency and a dramatic rise in wages...tax receipts are not coming back anytime soon.

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#8) On April 12, 2010 at 9:34 PM, Donnernv (< 20) wrote:

Less than 50% of the population is employed?  You are off the tracks now.  Employed means working and being paid.

Are you counting children?  The retired?  And by your definition government employees are not "employed"?  Get a grip.

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#9) On April 12, 2010 at 9:49 PM, alstry (36.12) wrote:

Yes, as far as children and elderly....as they are a burden on society today....from a financial standpoint that is.....(government workers are simply getting paid with borrowed money from our dwindling retirement accounts that are being inflated with fraudulent accounting)

In the old days, the elderly and children worked and were productive members of society.  Many were active wage earners.  My grandfather supported his family at 12.......and although not the norm, it was not unheard of....

It appears you are a spoiled little brat.....you may want to read my next blog on the subject.

 

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#10) On April 12, 2010 at 10:09 PM, Donnernv (< 20) wrote:

Alstry:

I am hardly a "spoiled little brat"  I am old enough to be your father (now that's a scary thought; I'd have myself gelded) and I am hardly spoiled, as I personally earned every cent that I and my family have.

And through all the years, I've earned more than you will if you live to be 1000.  And, although retired, I still earn for me and my family more each year than you will in the next 20 years.

Pick an easier target; you have a loser in this combat.

And please detail how government workers are being paid from my retirement account.  I checked.  Nothing has been taken out as far as I can ascertain.

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#11) On April 12, 2010 at 10:16 PM, alstry (36.12) wrote:

I know you earned your money...I know more about you than you think.  My guess is we would be pretty good friends in real life.....maybe not.

As far as how much or little I have earned....I can tell you I have lost millions....beyond that, we don't need to get into a pissing match.

Right now, you earn your money based on fraudulent accounting.....as I told you before, nothing to this extent has ever happened in prior history, here or abroad.

And based on your tone and arrogance....you are not looking in the right direction....yet.  If I didn't actually respect you,  I wouldn't be this forthright.

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#12) On April 15, 2010 at 7:50 PM, TraderDonJuan (87.75) wrote:

Safeway did the same stuff while telling employees it was a "great buying oppertunity!" A store manager came back after Safeway annouced it's $1.5 Billion stock buyback and was told "Now is not a good time for you to sell your stock." meanwhile the fearless leaders at Safeway (Steven Burd) were selling $60 Million dollars worth of their own position which was given for non-performance ( The stock moves up on the buyback and not due to changes in the company's outlook and market share gains.). Next, Safeway caused a Short Squeeze one day causing the stock to jack up $6 (Great Buying by Merrill Lynch!) a share and Mr. Burd along with his fellow vectos at slash-and-burn-capital KKR holdings.  It is very common for insiders to use a buyback to absorb their stock which makes us shareholders feel like we are left holding the bag. Many store managers at Safeway were left holding stock options once worth a lot of money only to be left empty handed. So when I hear of a stock buy back it makes my sick when Form 4 Oracle shows all the insiders dumping! Good Post and keep up the good work!

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#13) On April 15, 2010 at 7:55 PM, TraderDonJuan (87.75) wrote:

My post should have read Mr. Burd along with his slash-and-burn-capital friends at KKR were selling most of their position into this stock buy back.  There are so many managers who listened to idiots tell them their Form 4 filings just meant they were diversifying while in fact the company's price was unsustainable. Sorry about the typo!

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