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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: John Vosilla who wrote (28352)3/18/2005 11:48:53 PM
From: mishedloRead Replies (1) of 306849
 
not spending spending on capex?

Where do you propose it go?
make more cars? chips? phones? ice cream? computers? peanut butter? calendars? craftman lawn mowers?
Improve existing production so we can layoff more people?

I don't know about R&D but I suggest we are so stuffed with stuff that even distribution channels are stuffed and so we do not need to increase capex to produce even more stuff!

If you think we need more stuff, tell me what stuff we need and then tell us where are we going to put it.

The problem is there are no good places to put money so it goes into consumption and share buybacks at absurd prices, and mergers at even stupider prices.

Five years from now in the middle of the bust, companies will be undoing mergers, spinning off companies, etc etc etc to "unlock shareholder value"

Mish
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