The Economy thread

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how is it weakness to show that your company has longevity as well as profits as their goals? It just doesnt make sense to me. It has nothing to do with slowing the gains but putting more in reserve and not earmarked as profit to be distributed, this would lower the payout for investors and bonuses for whoever is tied to profits but if used as a long term plan that is implemented properly the loss would be marginal when spread out over the life of a company. then they would be able to ride out any bubble burst or even full on depression while still being viable.

I understand it completely from an individuals perspective, the company gives zero fucks about the guys actually doing the work and wouldnt skip a beat to screw the little guys over. So, naturally if theres no level of actual loyalty going both ways then people are going to get what they want without regard to the company as a whole. But, this is something that falls onto the shoulders of the higher-ups that allowed those things to go through without giving a damn. nobody thinks long term about anything now, people are only concerned with the here and now which results in all kinds of skewed and odd speculations.

It's weakness because the #1 goal of EVERY CEO is to "maximize shareholder value". If you are making money with a product, the worst thing you can do is tell someone that you might not make as much on that product tomorrow. Look at Apple, the moment someone says, "they might not sell 80324023 iphones in Mongolia next year", novice stock traders lose their fucking minds. Short term stock gain is your sole goal in why you get hired. You aren't hired to create a long term, sustainable company, but rather maximize stock share in the shortest time possible. The shareholders don't want 5, 10, or 20 year returns, they want immediate, 15-20% EVERY YEAR. Then they get out.

Trust me, i get the whole reason people do this, but the fault lies with whoever owns/has controlling votes in the company. People keep allowing this to happen because they just want more more more then wonder why all of a sudden a company that was worth 50 billion is bankrupt and the stocks are worthless. the whole greater good argument isnt even really a good one. not doing stuff like that, or investing in companies that run like that is not so much about the greater good, it about the personal individual good of longevity and reliability. I'd much rather take a slightly lower payout knowing that the company has a solid plan and reserve that ensures that I will have a strong investment over the next 20 years than getting a little more and always wondering if this quarter is going to be the last.

Whoever it is that hires the CEO's, VP's, etc. are the ones to blame for things continuing on that path. and i know that they are doing it for the same reason that the guy on the lowest level does it: to get as much as they can as fast as they can. nothing will be learned until complete collapse happens though, but even then people will always buy into the I can make you rich quick schemes.

The board of directors vote on a new CEO. The board has stock shares. The CEO is hired to drive the shares up. The CEO then drives shares up, the board of directors takes profits, CEO retires. Look at every big company. Hell, look at Boeing. When the mindset is, "hey, i'm rich and cashed out, screw the next guy", there will always be a problem. But the only people who can fix the problems are the ones that actually profit from the problem!!!

Look, I get it, it's a shitty deal for Average Joe. That's why I always stressed to my investors, "follow the big money. the hedge fund guys. buy what they buy. sell when they sell".

We're all along for the ride. The sooner you accept that fact, the easier life gets.
 
Ive accepted that im along for the ride no matter what, im in no position to change things and probably never will. But, that doesnt mean that I will ever believe that it is ok, or even sustainable. we will just keep crashing and crashing with the so called "great recessions" and nobody will ever learn the lesson. Plain and simple: its just stupid.
 
Ive accepted that im along for the ride no matter what, im in no position to change things and probably never will. But, that doesnt mean that I will ever believe that it is ok, or even sustainable. we will just keep crashing and crashing with the so called "great recessions" and nobody will ever learn the lesson. Plain and simple: its just stupid.
you are left with one option....learn how to profit from it.
 
you are left with one option....learn how to profit from it.

If I had a couple more nickels, and a few more brain cells, today could have been a real good day. Lots of crazy short term stuff happening. Great entry prices in some stocks that aren't going anywhere. And some good shorts.. My own company is down 30% from last year's average price and is a bargain long term.
 
i'm with this guy
bubbles come and go, history repeats itself.
the rich ride the bubbles up and the poor ride it back down.
 
I'm not so sure it's a buy yet.... i forsee more tanking.
I turned dripping off on most of my larger div holdings last fall which means i have some cash sitting waiting to pounce on some cheap shares.
 
At this point the drop in oil price is due to several influential factors...first off, demand has gone down globally, and especially in China as their economy slows. But at the same time that demand has gone down, you've got OPEC producing at a high level and not wanting to cut production because they want to drive prices down to get a lot of the US shale players out of business. I don't know that most people know this, but as of 2014 the US is biggest oil producer in the world.

Those same US shale companies need to keep producing in order to have cash to pay their debts, so they're not going to stop production either. At this point a lot of them are starting to slash drilling budgets for 2016, but I haven't heard of a single company that's starting to shut-in wells. Its basically a game of chicken between OPEC and the US shale industry to see who cracks first. Even OPEC itself has a rift in it related to price. Several of the smaller countries that have a large portion of the country budget based on oil revenue are begging Saudi Arabia to cut production so that prices start to rise, but Saudi Arabia won't do that because they don't want to give up any more market share.

I'm an engineer in the industry and there are definitely companies shutting in wells in my location. They're drilling, completing but waiting to frac and begin producing.
 
I'm an engineer in the industry and there are definitely companies shutting in wells in my location. They're drilling, completing but waiting to frac and begin producing.

That I can understand, I was more talking about wells that were already producing. The company I work for will be drilling some wells in 2016, but I don't believe we are going to frac them either. If I had to guess they're simply being drilled to hold onto leases that would otherwise expire.

However, since I made that comment I have heard of a couple of companies that are beginning to shut-in producing wells. I think it was Devon, but I could be wrong. A lot of the smaller independents need to keep producing to have some cash flow, otherwise they're going to start missing debt payments which a bunch of companies have already done.
 
Another brutal day in the neighborhood. all of 2015's value has been erased.

VIX is the only thing going up it seems lol
 
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