The Senator wants to tell us that stock buybacks are not returning money to investors:
“They got a little fluff-and-buff in their stock. And how did they do that? By taking their excess cash and saying, ‘Geez, we can’t figure out anything to do with this cash. We’re not going to give it back to our investors. We’re going to make the investment decision that the only investment in America that makes any sense is to buy back our own stock.’”
Quite how she manages to work out how to get her own underpants on each morning is unknown.
Because, of course, it is investors who own the stock before the buyback. After the buyback the investors have no – or at least less – stock and some – or perhaps more – cash. This is therefore, this buyback, the very exemplar of returning money to stockholders.
She’s also dribbling when she thinks that buybacks don’t aid the US economy. For those ex-stockholders now have cash. With which they can only do one of two things. They can go spend it – increasing demand in the economy – or they can invest it. Savings are, of course, investment. It’s just that they go invest it in some other adventure or company, not the one that has just paid them out.
Dumb as a sack of rocks she is, dumb as a brick outhouse.