Originally Posted by deltabound

(as airlines are mentioned specifically, by name in this article, and airline CEO's are adamant that they will not accept loans with "no stockbuyback" clauses, this timely)The S.E.C. Rule That Destroyed the Universe

Anyone who wants to grok the genesis of the absolute evil that are "stock buybacks" needs to read the Rolling Stones article about the CFR Rule 10b-18 that changed everything way back in 1982. Prior to this rule change, a company repurchasing its own stocks in quantity was generally regarded as outright illegal stock price manipulation. With executives subject to jail time if they got caught. Previous to this rule, profits were mostly returned to shareholders via dividends or reinvested into the business.

From the article "Board members chosen by shareholders could raid their own companies assets to buy stock and goose share prices... Employees, customers, and society were suddenly in direct competition for resources with executives and shareholders. Should a company invest in a new factory, or should it just deliver instant millions to shareholders and executives paid in options?"

If you want to understand why trillions in profits for decades have been dumped into executive compensation and giant hedge fund stock holders, look no further. It's immoral, anti-capitalist, highly destructive, but thankfully, fixable. And now might be the time.