How can it be legal for corporate executives to use corporate credit to fund stock buybacks that increase the value of the executives’ stock options? It’s a clear conflict of interest, but it happens all the time. From Grp Cpn Lionel Mandrake at 1yfgk.substack.com:
And, Bankers and Boardrooms are Elated
Stock Buybacks are Screwing Americans
And, Bankers and Boardrooms are Elated
“As the scale of stock buybacks grows…….it has become increasingly clear that there is something deeply flawed with the way corporations are currently run, as well as the rules that incentivize certain corporate behaviors, particularly when compared to the model of corporate behavior we need companies to follow for a healthy and well-functioning economy.”
Introduction. This is Part 2 of my two part series on how the stock market has been forced upwards in possibly illegal ways to enrich the elite people that will have want all the stuff you used to own. Part 1 discusses even more impactful Fed actions to also boost the market, keep bonds afloat and – more importantly – keep our government solvent with artificially low interest rates. You can read Part 1 here.
NOTE: Nothing contained in this article should be construed as investment advice. Do your own research.
Stock buybacks, or repurchases, have grown substantially since the 2008 recession which began Quantitative Easing (QE) and has continued unabated with no end in sight.
Japan started QE in 2001 to boost their economy. They are now awashed in so much debt as to make ours seem like a used car loan. But be forewarned, even in America it is getting vary dark out there and at some point very soon, it will be a SHTF moment.1
At the same time that the Fed boosted the US Stock Market, they also bumped up the the “performance” based compensation packages for CEOs and officers of American businesses that are largely based on stock performance. Salaries are nothing compared to the value of stock options.
This is one reason why once Conservative Corporations became Liberalized and fell on the sword of Government control and “Wokeness”. The game was brilliant and quite simple – a case of simple bribery to install an umbilical cord between Corporate America and the US Government.
Pingback: Stock Buybacks are Screwing Americans, by Grp Cpn Lionel Mandrake — Der Friedensstifter
Reading link at CHS that AI trained on AI data only, degrades.
Examples are written numbers and face photos.
There is NO new man or workers utopia.
The Bastiat quote about plunder becoming a way of life comes to mind.