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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Don Lloyd who wrote (82733)	8/8/2000 7:21:04 AM
From: Alias Shrugged	Read Replies (1) \| Respond to of 132070

Don, it is always a pleasure (and education) reading your posts. Do you have any recommendations for initial reading on Austrian Economics? Thanks Mike

To: Don Lloyd who wrote (82733)	8/8/2000 9:52:13 AM
From: pater tenebrarum	Read Replies (2) \| Respond to of 132070

Don, it is my impression that the ESOP's have created an incentive for malinvestment...as the main interest of managements is now to drive up the stock price through buy-backs, regardless of whether this makes economic sense. normally a period of historically extremely inflated stock prices should encourage the issuance of stock, not buybacks - on credit to boot. i don't think it is a coincidence that the bubble years (the the second half of the '90's) have seen both buybacks and corporate debt explode to record levels. i agree with you as to what an option grant means for the various parties involved. interestingly, the tax rebates have allowed various technology behemoths to report profits that would otherwise not exist. it's an interesting, complex modern-day Ponzi scheme.... i would argue that at the very least corporate accounting should make the effects of ESOP's clear to shareholders. as it is now, one has to drag the truth from the tortured new era balance sheets. regards, hb