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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (25543)	1/30/2005 2:52:21 PM
From: Wyätt Gwyön	Respond to of 110194

i don't think they said what it was for, but IIRC the amount is around $500 million. according to CI, corporations should have considerable flexibility regarding timing and characterization of investments. in the case of energy cos, a lot of them have defined benefit plans, e.g., that could always use dough. not to mention debt repayment, and they might as well do mergers for cash because 8-12X PE is not exactly expensive stock currency. i think just about any energy co with overseas profits and a CFO with at least a room temperature IQ should be able to find a way to repatriate funds. Certainly new refineries and LNG terminals are necessary, but those aren't bogged down because of lack of capital incentives, but more by legal, permitting, and NIMBY obstacles. from what i have read, it seems doubtful that there will ever be any more new refineries in the US. LNG terminals, well there are a lot of plans in the works.

To: russwinter who wrote (25543)	1/30/2005 2:59:23 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

i forget what post you wrote it in (or maybe you deleted it), but regarding the plutocratic angle of profit repatriation, yes i agree. but when other countries (Asian mercantilists) conversely prop up the USD, that is also highly plutocratic. it is interesting how extreme it has gotten in the US. recently DELL announced it will be building a new plant in North Carolina. the amount of tax credits and other concessions they got (which required, i believe, a vote of the state legislature) was amazing--well into the hundreds of millions. as i recall the local paper said they were seeking zero state taxes for 20 years! now with the Patriot Plutocrat Act, maybe Dell can pay for that plant with repatriated profits taxed at 5%. ain't capitalism great?