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Comment by rodgerd | Hacker News Reader

As long as you realize your gains before the stock tanks, why do you give a fuck? The only people affected are the employees, the customers, and the mugs who invest for the long term.

If you expect to make your gains on the stock price (not, say, dividends), it's a perfectly rational strategy. Of course, it leads to things like IBM borrowing money for stock buy-backs to pump the price to make the numbers, which will be a long term disaster...

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No it's not, your argument excludes factors that are huge in reality. For example, these executives that find themselves in a position to do that usually have only found themselves in that role after an extensive amount of time (10+ years) working for not only that industry, but that company, building their entire reputations.

Many of these guys also continue to rely on their network for further opportunities and support. Their network would cut them out like gangrene, just like the old Enron titans, as to maintain their own good standing they couldn't be affiliated with somebody who clearly blew up their past company. That would be bad business, and that type of behavior would have prevented them from reaching those positions in the first place.

Who needs further opportunities and support when they already have $XXmm in the bank? At that point you can do whatever the fuck you want.

If you can buy something and then convince other people it's worth more than it is then you'll turn a profit while screwing those people, sure. But that's true of anything - cars, houses, bridges....

And where do you imagine those gains come from?

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