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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: IceShark who wrote (20066)	3/27/2000 4:48:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 42523

true...which brings us back to why are they not protesting what's happening? i think the answer is simple...the stock market cares much more about the obvious than the arcane. and the more obvious effect of the ESO schemes is the reduction in salary costs and the tax credits. Bill Parish e.g. argues that without an options plan, MSFT would never have earned a single dime. in which case it would likely not sport a 550 bn. market cap. i know Parish's assumptions are somewhat extreme, but in the main his arguments have merit. at the very least many hi-tech cos would likely report much lower earnings without ESOPs, pooling of interest accounting, put selling and gains from stock market speculation. it's all part of a self-reinforcing game, similar to the Japanese zaitechu. and like zaitechu it will one day come back and bite the bubble participants in the back...