1. Banning Buybacks Would Backfire and Lead to More Companies Going Private - Canaccord

    Banning Buybacks Would Backfire and Lead to More Companies Going Private - Canaccord

    If Congress limits the ability of companies to buy back shares, it would backfire and likely result in more companies taking themselves private through leveraged buyouts, a Wall Street research firm said. "Going private is essentially a 100 percent buyback," said Brian Reynolds, asset class strategist at Canaccord Genuity. He adds that CEOs are motivated to increase their companies' stock price...

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    1. Going private is essentially a 100 percent buyback.
    2. It doesn't make sense for most companies to invest in plant and equipment and hiring because nominal GDP growth is in a four decade downtrend. If every company started investing in plant and equipment, the result would be deflation, which would be far worse for the economy.
    3. I think you need a real change in the executive branch and in the Senate for this to pass.
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