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Of course Lutnick, being a Trump toady, lies continuously just like Trump. So, take this with a grain of salt.
This headline is from Barron's, a few excerpts are provided below. link
Commerce Secretary Howard Lutnick, on Tuesday, opened the door to the U.S. federal government taking stakes in American defense contractors.
“There’s a monstrous discussion about defense,” said Lutnick on CNBC’s Squawk Box, answering a question about taking stakes in defense contractors. “Lockheed Martin makes 97% of their revenue from the U.S. government. They are basically an arm of the U.S. government.” He added that the secretary of Defense is “thinking about it.”
Taking a stake, free or paid, would be relatively unprecedented. The industry isn’t in need of capital or in distress. Those are two circumstances where the U.S. government has purchased equity in companies in the past.
“Why…would the U.S. government take stakes in major contractors when [the contractors] are signaling they have excess capital and using that to buy back their stock?” asked Capital Alpha Partners’ Byron Callan.
Sure, why not take our tax dollars and buy into defense companies. I mean, only 13% of our budget goes to military spending. Only 47% of discretionary spending. We gotta build a space dome don't we? What could go wrong?
This headline is from Barron's, a few excerpts are provided below. link
Commerce Secretary Howard Lutnick, on Tuesday, opened the door to the U.S. federal government taking stakes in American defense contractors.
“There’s a monstrous discussion about defense,” said Lutnick on CNBC’s Squawk Box, answering a question about taking stakes in defense contractors. “Lockheed Martin makes 97% of their revenue from the U.S. government. They are basically an arm of the U.S. government.” He added that the secretary of Defense is “thinking about it.”
Taking a stake, free or paid, would be relatively unprecedented. The industry isn’t in need of capital or in distress. Those are two circumstances where the U.S. government has purchased equity in companies in the past.
“Why…would the U.S. government take stakes in major contractors when [the contractors] are signaling they have excess capital and using that to buy back their stock?” asked Capital Alpha Partners’ Byron Callan.
Sure, why not take our tax dollars and buy into defense companies. I mean, only 13% of our budget goes to military spending. Only 47% of discretionary spending. We gotta build a space dome don't we? What could go wrong?