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To: Crimson Ghost who wrote (82260)	1/4/2000 3:03:00 PM
From: pater tenebrarum	Respond to of 86076

George, corporate America has become a firm believer of leveraging the balance sheet to the hilt...that's fine while the expansion and the bull market last, but a disaster as soon as the economy weakens. and what are balance sheets leveraged for? stock buybacks of course. taking on debt to buy back the most overvalued stocks in the market's history? that's a variation on a theme...they played similar games in Japan during the 80's. i for one do like dividends and have bought high yielders of late. note: they're up today....

To: Crimson Ghost who wrote (82260)	1/4/2000 3:33:00 PM
From: IceShark	Respond to of 86076

From a double taxation view, it is a valid point. The problem in current conditions is that they usually go crazy on employee options and steal all the equity buybacks from shareholders and buy the stock at way too high prices which more than eliminates the 40% tax advantage to shareholders. Then there are the tax exempt shareholders, i.e. pension/retirement funds. They are totally screwed by this practice and I can't figure out why they let it go on given their activism of several years ago. Brain dead? I don't know.