Stock buybacks are a form of economically useless, business-starving financial engineering that makes rich people much, much richer.
The GOP tax plan makes this kind of shenanigan a lot more advantageous, giving preferential tax-treatment to this kind of income and shifting the burden of funding America to people who earn their livings through their wages, rather than through the stripmining of companies.
Financial analysts are predicting $800,000,000,000 in stock-buybacks by US corporations this quarter.
While US companies will lift their spending on investments, research and development by 11 per cent to more than $1tn this year, shareholder returns in the form of buybacks and dividends will grow by 21.6 per cent to nearly $1.2tn, Mr Kostin predicted.
“I’m willing to bet that as soon as companies start buying shares again [after the earning season blackout] that we will see the market volatility fall again,” Mr Pirondini said. “The geopolitical temperature is going up, and that’s not a good thing. But it is the economic cycle that will drive markets, and the global economy looks good.”
Corporate America poised to unveil record buybacks [Robin Wigglesworth/Financial Times]
(via Naked Capitalism)
(Image: syslfrog, CC-BY)
Kaja Robinson is 53 and has a daughter about to go off to college, but she is still embroiled in bizarre, kafkaesque disputes over the $17,000 student loan she took out in the 1980s: for decades, she has had to set aside whole days to call debt collectors and try to get them to acknowledge […]
On NPR's always-excellent Rough Translation podcast comes an incredibly complex and nuanced story (MP3, transcript) about marginalized, racialized people in public housing in Marseille who found an accepting haven in a local McDonald's franchise, and who banded together to save it -- and other nearby McD's -- in a series of direct actions ranging from […]
Thomas Piketty, the French economist behind 2014's game-changing Capital in the 21st Century, has a new book, Capital and Ideology (out in France now, coming in English in 2020), which uses the same long-run economic series that Capital 21C benefited from to understand the relationship between wealth and ideology. Central to Piketty's thesis: that it's […]
There are a lot of different language apps out there because nobody learns anything the same exact way – especially not something as complex as a new language. For some people, the best way is to dive in and start talking, but that’s easier said than done if you’re not around those natives you aspire […]
There’s movie merch and then there are artifacts – one-of-a-kind items for the true fans only. These 11 items definitely fall into the latter category. We’ve unearthed movie art, props and other fan touchstones from the major nerd franchises of the last 50 years. Gaze upon these Star Wars and Marvel collectibles and don’t worry. […]
No matter what kind of office you work at, there’s probably an Excel expert in it. And no wonder: Businesses are still discovering uses for one of Microsoft’s flagship software suites beyond just bare-bones spreadsheets. Make October the month you become invaluable at work by taking one of these boot camps in Excel and its […]