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Stock Buybacks A Piece Of “Financial Engineering Game”
Stock Buybacks A Piece Of “Financial Engineering Game” In today’s market far too much has become based on financial engineering rather than making money. Prior to the Great Depression share buybacks and margin lending was a huge factor in lifting stocks to an unsustainable level. We must remember this today because for years we have […]
General Motors And General Electric Were Both Victimized By The Same Ponzi Scheme, And They Are Both Telling Us The U.S. Economy Is In HUGE Trouble
General Motors And General Electric Were Both Victimized By The Same Ponzi Scheme, And They Are Both Telling Us The U.S. Economy Is In HUGE Trouble America’s twin economic “generals” are both in very deep trouble. General Electric was founded in 1892, and it was once one of the most powerful corporations on the entire […]
General Motors And General Electric Were Both Victimized By The Same Ponzi Scheme, And They Are Both Telling Us The U.S. Economy Is In HUGE Trouble
General Motors And General Electric Were Both Victimized By The Same Ponzi Scheme, And They Are Both Telling Us The U.S. Economy Is In HUGE Trouble America’s twin economic “generals” are both in very deep trouble. General Electric was founded in 1892, and it was once one of the most powerful corporations on the entire […]
Mind Blowing
Mind Blowing We’re in one of the longest economic expansion cycles in history and nobody’s happy. It’s mind blowing. You’d think 2018 would have people dancing in the streets. 3.7% unemployment, record stock market prices. Well the ladder until recently that is. So let me rephrase: What happens if you have record buybacks, record dividends, […]
The Everything Bubble: When Will It Finally Crash?
The Everything Bubble: When Will It Finally Crash? Much like the laws of physics, there are certain laws of economics that remain constant no matter how much manipulation exists in the markets. Expansion inevitably leads to contraction, and that which goes up must eventually come down. Central banks understand this reality very well; they have […]
Stock Market Manias of the Past vs the Echo Bubble
Stock Market Manias of the Past vs the Echo Bubble The Big Picture The diverging performance of major US stock market indexes which has been in place since the late January peak in DJIA and SPX has become even more extreme in recent months. In terms of duration and extent it is one of the […]
Harvard Professors Expose ‘The Real Problem With Stock Buybacks’
Harvard Professors Expose ‘The Real Problem With Stock Buybacks’ Many critics say buybacks crimp investment. But the real problem is that – unlike dividends – buybacks can be used to systematically transfer wealth from shareholders to executives.. There is a problem with share buybacks – but it isn’t the one many critics and legislators are […]
Huge New Prop under the Stock Market is a One-Time Affair
Huge New Prop under the Stock Market is a One-Time Affair Crash insurance with an expiration date. But its working while it lasts. In May, with great and perfectly orchestrated fanfare, US corporations announced plans to buy back $173.6 billion of their own shares sometime in the future. It was the largest monthly buyback announcement […]
Why I Think the Stock Market Cannot Crash in 2018
Why I Think the Stock Market Cannot Crash in 2018 But the crash-insurance policy is a one-time deal. And then what? The 85% of S&P 500 companies that have reported earnings so far disclosed they’d bought back $158 billion of their own shares in Q1, according to the Wall Street Journal. The quarterly record of […]
The Two Janet’s And The Perfect Storm Ahead
The Two Janet’s And The Perfect Storm Ahead The Bloomberg news crawler this morning is heralding the heart of our thesis: Namely, that “flush with cash from the tax cut”, US companies are heading for a “stock buyback binge of historic proportions”. This isn’t a “told you so” point. It’s dramatic proof that corporate America has […]
It’s Raining Money
It’s Raining Money With apologies to the Dire Straights: Now look at them yo-yo’s that’s the way you do it You play the bull on the fin TV That ain’t workin’ that’s the way you do it Money for nothin’ and stocks for free After 9 years of artificial liquidity drenching markets the same game […]
This Year’s Stock Buybacks Are Already Bigger Than All Of 2009’s
This Year’s Stock Buybacks Are Already Bigger Than All Of 2009’s While there is still some fringe debate what companies will do with the hundreds of billions in offshore funds repatriated to the US as part of the recently passed Trump tax reform, the discussion is largely over, especially after last week’s Cisco results. The […]
Debt Has No Consequences? Color Me Skeptical
Debt Has No Consequences? Color Me Skeptical The entire status quo is based on the delusion that rapidly rising debt will never generate any negative consequences. Here’s a chart of America’s national debt, extended a mere dozen years into the future: the current $20 trillion in debt will double to $40 trillion, and that assumes […]
