Brad,

Thanks for weighing in on this debate. If it’s true that “corporate managers tend to waste available cash by spending it on projects that benefit themselves but that are poor investments,” how is it that their preferred strategy of buying back shares, with borrowed money at record high prices, is not likely an equally poor investment?

And if the judgment of these corporate managers is indeed so poor, why should we accept the notion that the investments they are passing up are “stupid ones?” If the attractive investment opportunities for so many companies are so scarce that their best option is to borrow money to repurchase shares regardless of value, then our economy is worse off than I thought.

Dave