About corntrollio

corntrollio


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In United States
Registered Apr 29, 2010

corntrollio's most recent comments:

  • On 11 Apr 2014 in Without iwog and roberto has pnet become too "fair and balanced" (aka lopsided, corntrollio said:

    bubblesitter says

    Well, no one was expecting the dotcom burst.

    Except for people who asked about profits...

  • On 11 Apr 2014 in What happens when Americans don't have health insurance, corntrollio said:

    Strategist says

    The purpose of corporations is to maximize shareholder value.

    Again, a huge myth:

    http://www.truth-out.org/news/item/22530-the-myth-of-maximizing-shareholder-value

    However, as Lazonick points out, when the shareholder-value mantra becomes the main focus for companies executives usually concentrate on avoiding taxes for the sake of higher profits and don’t think twice about permanently axing workers. They also increase distributions of corporate cash to shareholders in the form of dividends and, even more prominently, stock buybacks.

    When a corporation becomes financialized in this way, the top executives no longer concern themselves with investing in the productive capabilities of employees, the foundation for rising living standards. Instead they become focused on generating financial profits that can justify ever higher stock prices – in large part because, through their stock-based compensation, high stock prices translate into megabucks for these corporate executives themselves.

    It’s not a pretty state of affairs. Lazonick discusses how we evolved from a society in which corporate interests were largely aligned with those of broader public purpose into a state where crony capitalism, accounting fraud, and corporate predation are predominant characteristics.

    Lazonick makes a very powerful case that the ideology of “maximizing shareholder value” primarily works to the benefit of the very corporate executives who make corporate resource allocation decisions, and who derive high levels of remuneration from munificent stock option awards. As for the rest of us, we’re left to fight over the crumbs.

    A link to a previous article referenced within that one is also instructive:

    http://www.nakedcapitalism.com/2013/10/why-the-maximizing-shareholder-value-theory-of-corporate-governance-is-bogus.html

  • On 11 Apr 2014 in Middle Class was "Fed" to the Sharks, corntrollio said:

    Reality says

    That's why those junk papers were rated AAA, so the savers of the world would buy them.

    Are you talking about institutional investors or grandma?

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