Are Stock Buybacks Starving the US Economy?

FAH1223

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Institutional capital needs it's returns :ufdup:

It was illegal though


Buybacks occur when a company takes profits, cash reserves, or borrowed money to purchase its own shares on the public markets, a practice barred until the Ronald Reagan administration. (The regulatory argument against allowing the practice is that it is a way for companies to manipulate the markets; the regulatory argument for it is that companies should be able to spend money how they see fit.) In recent years, with corporate profits high, American firms have bought their own stocks with extraordinary zeal. Federal Reserve data show that buybacks are now equivalent to 4 percent of annual economic output, up from zero percent in the 1990s. Companies spent roughly $7 trillion on their own shares from 2004 to 2014, and have spent hundreds of billions of dollars on buybacks in the past six months alone.
 

88m3

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this is one of the things some friends and I were talking about a few nights ago


wages can't be left the way they are and loopholes need to be closed


set a cap on buybacks or ban them


:manny:


people are being nickel and dimed everyday by the same people(corporations) who refuse to pay them a living wage
 

Red Shield

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It was illegal though


Buybacks occur when a company takes profits, cash reserves, or borrowed money to purchase its own shares on the public markets, a practice barred until the Ronald Reagan administration. (The regulatory argument against allowing the practice is that it is a way for companies to manipulate the markets; the regulatory argument for it is that companies should be able to spend money how they see fit.) In recent years, with corporate profits high, American firms have bought their own stocks with extraordinary zeal. Federal Reserve data show that buybacks are now equivalent to 4 percent of annual economic output, up from zero percent in the 1990s. Companies spent roughly $7 trillion on their own shares from 2004 to 2014, and have spent hundreds of billions of dollars on buybacks in the past six months alone.
The damage Reagan did :laff:
 

88m3

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I suppose I knew but tax buybacks are also a way they can lower their tax burden if I'm getting this right.

The American people are being taken for a ride

- The Washington Post

:snoop:
 

Geek Nasty

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Americans are so brainwashed by corporate american thinking if a company gave their workers raises it would actually hurt their stock price. The more you treat your workers like shyt the better your stock price. Wall Street loves slavery, it's backed into the name
 
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