SoylentNews is people
SoylentNews
from the FIRE-sector-doing-bad-math-again dept.
The Intercept reports:
Bank of America Merrill Lynch downgraded Chipotle and warned investors that the stock will "underperform", complaining that the restaurant chain is paying its workers too much, and that cutting labor costs further will be difficult for the chain.
[...] Chipotle spokesperson Chris Arnold called Bank of America's analysis "flawed and inaccurate", adding that the restaurant chain hasn't cut employee hours but recently increased hours in conjunction with the addition of queso to the menu.
"That analysis is making estimates and conclusions about our management practices over a 12-year time frame from 2006 to 2017", Arnold told The Intercept. "Obviously, the scale of our business and labor wages have changed dramatically over that time frame. Drawing conclusions from 2006 and applying them as a directional change to our business over the past 12 months is simply flawed."
[...] "We continue to pay wages and offer benefits that are competitive and that reflect the priorities of our employees", Arnold said. "And with a commitment to developing and promoting people from within, we are providing significant opportunities for advancement."
The downgrade is a symptom of Wall Street's maniacal obsession with labor costs.
(Score: 0) by Anonymous Coward on Monday October 23 2017, @12:36AM (2 children)
...with algorithms
...or at least with public banks.[1] [google.com]
That one, founded in 1913 (the same year The Federal Reserve was established), allowed that state to weather The Great Depression better than the other 47 states.
N.B. It is also doing better in the Bush-Obama-Trump Depression.
...and the US Post Office offered banking services until 1967.
...when Reactionaries/Neoliberals killed that.
[1] Ellen Brown ran for Treasurer of California on the Green ticket.
She wanted to institute a public bank in California.
I voted for her. Really smart chick.
-- OriginalOwner_ [soylentnews.org]
(Score: 0) by Anonymous Coward on Monday October 23 2017, @04:39AM (1 child)
You think congress will do a better job with our banks than they have now? How? I am missing step 2 here... It would just be 'owned' by citizens instead of by some corporate entity. Very little would be different other than a nice warm fuzzy. It would be used as a political tool and weapon.
The real damage was finished off in the 90s when they let banks have investment divisions again. Just look at the name of the bank you posted (Bank of America Merrill Lynch). BoA was bought out by Nations. ML was failing hard in 2008 and would not exist anymore if Nations had not stitched them together with BoA. They were literally 'to big to fail'. If BoA seized up the whole banking industry would have seized up. We are balls deep in the Fed now. Yet no one sees that as the problem. I sure as hell do not see how making bigger banks more powerful banks would help the situation. When it happens again it will be quite the shit show. As the Fed can no longer stand on the rates and spend its way out of the problem. Which is what it has been doing since 2008. There is a 8-10 year cycle. Guess what is about to pop again?
(Score: 0) by Anonymous Coward on Monday October 23 2017, @07:56AM
What's so great about letting a private bank extract wealth by handing over public money to them?
Seems unnecessary and stupid to me.
Public banks are a much better idea.
I've mentioned The Bank of North Dakota previously in this (meta)thread.
Ellen Brown is their #1 (uncompensated) cheerleader.
Read some of her stuff.
We also have a history at the national level.
There was First Bank of the United States: 1791 until the charter expired in 1811.
...and The Second Bank of the United States: Chartered in 1816; privatized in 1836 (Andrew Jackson[1] killed it, which caused the Panic of 1837[2])
[1] A Neoliberal long before the term existed; a real piece of crap; Trump's favorite president.
[2] A depression that lasted 1837 - 1843.
.
in the 90s when they let banks have investment divisions again
You'll get no argument from me that killing Glass-Steagall was just plain evil.
Neoliberal Slick Willie was a disaster.
Bill Clinton's Five Major Achievements Were Longstanding GOP Objectives [googleusercontent.com] (orig) [truth-out.org]
the Fed
Now, that was a horrible idea.
I wish I had a link to the audio of Ellen Brown describing how The Wizard of Oz was all about (evil private) bankers.
You do realize that The "Federal" Reserve isn't actually a part of the government. Right?
It's a cartel of 12 private banks.
-- OriginalOwner_ [soylentnews.org]