Once in a while, a random comment on a random post on a random thread on a random site strikes me as worthy of a post here in these endeavors. What follows is such.
IBM's (and American corps generally) problem is that they've lost their marbles. Corps managements (the CxO class) are paid those big bucks because they are supposed to be smarter allocators of fiduciary capital into physical capital, and thus earn a real return. They've all, by and large, stopped doing that. There's a reason that up to $7 trillion is sitting in corporate coffers. Buy backs and dividends only move money from one subset of the 1% to another subset of the 1%. There's no growth, which all corps need, in the general economy. It's just circling the wagons against the 99%. A Robocop world, in fact. No idea how to generate real growth yields to accounting manipulation, aka financial engineering.
The latest scheme, not one IBM is party to that I've read, is 100+% car title loans to poor people. Such a great way to build growth into an economy.
Have a nice day.
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