Comments on: Counterparties: Imposing pay cuts on unions

By: KenG_CA

KenG_CA — Wed, 25 Jul 2012 14:44:45 +0000

MrFox, that kind of shows how much CS cares about its shareholders.

By: MrRFox

MrRFox — Wed, 25 Jul 2012 12:25:31 +0000

Hmmmm … about this -

“Adding Value
Most share buybacks haven’t “added much value for remaining shareholders” – Credit Suisse”

Consider this -

“Credit Suisse to buy back $4.4 billion of securities | Reuters”

http://www.reuters.com/article/2012/03/0 5/us-creditsuisse-idUSTRE8240CN20120305

By: Kaleberg

Kaleberg — Wed, 25 Jul 2012 00:45:40 +0000

This is why you want to bring back the 90% tax bracket and raise corporate rates. When when most of the increased profit goes directly or indirectly to the government, corporations are less concerned with grabbing every penny and more concerned with growing their businesses. We had much higher growth overall and much higher wage growth back when taxes were higher.

By: KenG_CA

KenG_CA — Tue, 24 Jul 2012 22:39:07 +0000

How are unions going to boycott steel companies? I guess they can refuse to buy appliances and cars, but that’s going to happen anyway, as they make less money. They will probably spend less in their towns and cities, and the workers in those retail industries will earn and spend less. And let me guess, when domestic sales of cars, appliances, and steel companies decline, they will blame it on taxes and unions.

So do the executives of these companies that are so eager to slash wages ever really think about their end customer? Do they think it’s a car manufacturer, and not a car buyer? A real estate developer, and not an office worker or retail clerk? If less wages are paid, where do they think the decreased spending by those workers will replaced? If they cut wages, don’t they think other manufacturers will do the same, and their workers will spend less?

Cutting wages when a company is profitable is deflationary and short-sighted. Not that the guys running those companies care. They claim they have to cut those costs to be competitive, but it’s often more likely because they want to add to their cash hoard.