[rumanator]

> By paying dividends, you distribute profits via cash.

Dividends are paid from profits. This particular example of stock buyback would be paid from an emergency loan granted to the company under the assumption that it is to be used to help the company get back on it's feet.

Wasting an emergency loan on buybacks is the equivalent on burning the emergency cash by funneling it straight into the pockets of the company owners at the tax payers' expense, in a way that's a whole lot like fraud.

[tedunangst]

Where does the idea that the company is going to immediately spend its emergency loan on more buybacks come from?

[not2b]

From what happened in 2008.

[rumanator]

> Where does the idea that the company is going to immediately spend its emergency loan on more buybacks come from?

From the topic of the discussion you're commenting on.

[umanwizard]

What would prevent them from doing exactly the same thing with dividends: spending the emergency loan on them?

[toast0]

Dividends are sometimes paid from profits, and sometimes paid from loans.