Author Topic: So Stupid!  (Read 3718 times)

EliG

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Re: So Stupid!
« Reply #20 on: November 16, 2017, 04:17:14 PM »
"Why aren't the other hands up?"

For context:

https://www.washingtonpost.com/news/wonk/wp/2017/11/14/why-arent-the-other-hands-up-a-top-trump-advisers-startling-response-to-ceos-not-doing-what-hed-expect/

Quote
President Trump's top economic adviser, Gary Cohn, looked out from the stage at a sea of CEOs and top executives in the audience Tuesday for the Wall Street Journal's CEO Council meeting. As Cohn sat comfortably onstage, a Journal editor asked the crowd to raise their hands if their company plans to invest more if the tax reform bill passes.

Very few hands went up.

Cohn looked surprised. “Why aren't the other hands up?” he said.



rb

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Re: So Stupid!
« Reply #21 on: November 16, 2017, 04:51:53 PM »
"Why aren't the other hands up?"

For context:

https://www.washingtonpost.com/news/wonk/wp/2017/11/14/why-arent-the-other-hands-up-a-top-trump-advisers-startling-response-to-ceos-not-doing-what-hed-expect/

Quote
President Trump's top economic adviser, Gary Cohn, looked out from the stage at a sea of CEOs and top executives in the audience Tuesday for the Wall Street Journal's CEO Council meeting. As Cohn sat comfortably onstage, a Journal editor asked the crowd to raise their hands if their company plans to invest more if the tax reform bill passes.

Very few hands went up.

Cohn looked surprised. “Why aren't the other hands up?” he said.
They were being honest.

Cameron

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Re: So Stupid!
« Reply #22 on: November 16, 2017, 04:59:47 PM »
"Why aren't the other hands up?"

For context:

https://www.washingtonpost.com/news/wonk/wp/2017/11/14/why-arent-the-other-hands-up-a-top-trump-advisers-startling-response-to-ceos-not-doing-what-hed-expect/

Quote
President Trump's top economic adviser, Gary Cohn, looked out from the stage at a sea of CEOs and top executives in the audience Tuesday for the Wall Street Journal's CEO Council meeting. As Cohn sat comfortably onstage, a Journal editor asked the crowd to raise their hands if their company plans to invest more if the tax reform bill passes.

Very few hands went up.

Cohn looked surprised. “Why aren't the other hands up?” he said.
They were being honest.

No no no they are apart of the swamp and were paid off by the fake news Washington Post and NY Times.

cobafdek

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Re: So Stupid!
« Reply #23 on: November 16, 2017, 09:46:54 PM »
"Why aren't the other hands up?"

For context:

https://www.washingtonpost.com/news/wonk/wp/2017/11/14/why-arent-the-other-hands-up-a-top-trump-advisers-startling-response-to-ceos-not-doing-what-hed-expect/

Quote
President Trump's top economic adviser, Gary Cohn, looked out from the stage at a sea of CEOs and top executives in the audience Tuesday for the Wall Street Journal's CEO Council meeting. As Cohn sat comfortably onstage, a Journal editor asked the crowd to raise their hands if their company plans to invest more if the tax reform bill passes.

Very few hands went up.

Cohn looked surprised. “Why aren't the other hands up?” he said.

(Apropos the wording for this thread's title):  The WSJ editor asked a "So Stupid" question.

Any really good CEO would never make investment decisions based on a single factor.  No wonder he's a journalist:  no skin in the game, no brains to run a complex organization.

« Last Edit: November 16, 2017, 09:50:45 PM by cobafdek »

LC

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Re: So Stupid!
« Reply #24 on: November 16, 2017, 10:25:40 PM »
Quote
Any really good CEO would never make investment decisions based on a single factor.  No wonder he's a journalist:  no skin in the game, no brains to run a complex organization.

But Trump is selling the tax break to the wealthy as a means to increase reinvestment in American business. Shouldn't Trump be aware that reinvestment is not dependent on a single factor, as you mention?
"Lethargy bordering on sloth remains the cornerstone of our investment style."
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cobafdek

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Re: So Stupid!
« Reply #25 on: November 16, 2017, 11:04:00 PM »
Quote
Any really good CEO would never make investment decisions based on a single factor.  No wonder he's a journalist:  no skin in the game, no brains to run a complex organization.

But Trump is selling the tax break to the wealthy as a means to increase reinvestment in American business. Shouldn't Trump be aware that reinvestment is not dependent on a single factor, as you mention?

No need to get bogged down in word games.  The meaning of "investment" is elastic.  The average Deplorable might expect higher "investment" to mean higher wages and more jobs for them, and the CEOs are probably aware of this.  The CEOs are also aware that wages and employment expenses, strictly speaking, belong in Operating Cash Flow on the Cash Flow Statement, and not in the Investing Cash Flow section.  The CEOs may have other things in mind, such as deploying the tax break in Investment Cash Flows that do not involve direct benefits to workers in terms of wages and jobs.

Any bets that WSJ editor John Bussey has zero business experience?
« Last Edit: November 16, 2017, 11:18:34 PM by cobafdek »

LC

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Re: So Stupid!
« Reply #26 on: November 16, 2017, 11:25:01 PM »
So we agree that a tax break for the wealthiest citizens and corporations will do little to directly enrich the lives of the poor, working, and middle classes i.e. 95% of the US population?
"Lethargy bordering on sloth remains the cornerstone of our investment style."
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rb

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Re: So Stupid!
« Reply #27 on: November 16, 2017, 11:27:42 PM »
The meaning of investment is elastic? Who's playing word games here?

Actually the meaning is investment is pretty well defined and all the people in that room knew what it was. Also there are many data points that point to the fact that savings from the tax cut will not be used for investment purposes. Those CEOs honestly was in keeping with that.

cobafdek

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Re: So Stupid!
« Reply #28 on: November 16, 2017, 11:43:46 PM »
So we agree that a tax break for the wealthiest citizens and corporations will do little to directly enrich the lives of the poor, working, and middle classes i.e. 95% of the US population?

I'd prefer tax cuts or tax reforms during a recession, not at times like now.

Actually the meaning is investment is pretty well defined

Well, no:  official definitions are arbitrary.  For example, R&D is an operating expense by accounting convention, but it makes more economic sense to think of R&D as an investment, as many analysts do when they do their own pro forma numbers.
« Last Edit: November 16, 2017, 11:46:29 PM by cobafdek »

LC

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Re: So Stupid!
« Reply #29 on: November 17, 2017, 12:13:43 AM »
So all those CEOs were sitting there, deep in thought, wondering whether the additional capital provided by federal tax cuts would be re-invested in their business, and whether that would flow thru the income statement or investing cash flow section, and whether to classify it as R&D or SG&A. Yes this sounds like every CEO I've ever met. Gimme a break!

The reality is that this tax cut will do relatively little to spur additional investment as promised. As you say: "I'd prefer tax cuts or tax reforms during a recession, not at times like now".
"Lethargy bordering on sloth remains the cornerstone of our investment style."
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