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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Personal Finance / Macroeconomic Trends & Risks
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Author: OrmontUS   😊 😞
Number: of 4460 
Subject: A real risk to US stocks
Date: 01/07/26 8:05 PM
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kyivpost.com: Trump Says Will Ban US Defense Companies Issuing Dividends, Stock Buybacks
edition.cnn.com - Trump defense budget contractor restrictions

US President Donald Trump on Wednesday threatened to cap executive pay at major US defense contractors and ban shareholder dividends and stock buybacks, accusing the industry of prioritizing profits over production speed.

“Defense Contractors are currently issuing massive Dividends to their Shareholders and massive Stock Buybacks, at the expense and detriment of investing in Plants and Equipment,” Trump wrote in a lengthy post on his Truth Social platform.

Trump said defense company executives would be barred from earning more than $5 million annually until they build new manufacturing facilities and accelerate delivery of military equipment.

Trump argued that “as high as it sounds,” $5 million “is a mere fraction of what they are making now.”

While the exorbitant compensation of US CEO's is not necessarily in the stock holder's best interest, the fact that the president of the USD can essentially dictate the ability of stockholders of companies to make a profit until they kowtow to his ideas of how the companies should spend their capital goes against the very concept of our capitalistic structure. It is essentially the nationalization of the businesses without the benefit of paying compensation.

“I have determined that, for the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars,” he posted on social media.

Defense stocks, in turn, trended sharply upwards in after-hours trading, regaining much of their initial losses. It was not clear if a broader deal with Congress, which authorizes defense spending, has been reached. Trump attributed the ability to afford the increase to his tariff policies.

The White House and Pentagon did not immediately respond to requests for comments on more detail about the posts.

Wouldn't it be fun to have advanced knowledge of that change of heart?

Jeff
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