Mohacsy's Safe Portfolio Member Forum

[trkyhntr]

Wonderful article on CNBC this morning in which they bemoan the fact that a whole lot of cash might come back to the USA from overseas. Their reasoning?
Quote:
The majority of funds repatriated by U.S. companies in the future is likely be spent on shareholders rather than investment in capital and people, Blackstone Vice Chairman John Studzinski told CNBC at the World Economic Forum in Davos on Tuesday.
"I would guess that two-thirds of the cash will go back to share buybacks and extraordinary dividends - so I think one of the things that's disconnected right now is this notion that all the money's going to go back to building plants and creating jobs," posited the senior managing director at the world's largest alternative investment firm.
http://www.cnbc.com/2017/01/17/most-repatriated-us-cash-will-go-to-shareholders-not-society-blackstone-vice-chairman.html


My question is very simple: When a company pays its shareholders a dividend, where does that money go? Answer is also very simple: It goes to people who do something with it. They might spend it, invest it, or just save it. All of those things are simply horrible, right? Much better to have those corporate executives line their own pockets with it, huh?