Thanks for writing and publishing. I've seen some good charts showing another aspect of this story: that almost all the "gains" the Dow has made since the GFC, perhaps since earlier, were attributable to stock buybacks, rather than actual gains in productivity or profitability. If you strip out the buybacks, financial trendlines have bee…
Thanks for writing and publishing. I've seen some good charts showing another aspect of this story: that almost all the "gains" the Dow has made since the GFC, perhaps since earlier, were attributable to stock buybacks, rather than actual gains in productivity or profitability. If you strip out the buybacks, financial trendlines have been flatlining or declining for a very long time. Can't remember exactly which analysts have put these charts together, but they turn up at Zerohedge, Epsilon Theory (mentioned by commenter below), Wolf Street and other non-mainstream financial websites. The point being, that political leaders had a stake in allowing the corporations to goose their own stock prices, because it would allow the political leaders to take credit for an overall booming stock market that was, in fact, an illusion. But maintaining the illusion kept the pitchforks at bay for a time, and so the political leaders did their part to keep the grift going. The corporate-state nexus of power and corruption frequently the target of your excellent work.
Thanks for writing and publishing. I've seen some good charts showing another aspect of this story: that almost all the "gains" the Dow has made since the GFC, perhaps since earlier, were attributable to stock buybacks, rather than actual gains in productivity or profitability. If you strip out the buybacks, financial trendlines have been flatlining or declining for a very long time. Can't remember exactly which analysts have put these charts together, but they turn up at Zerohedge, Epsilon Theory (mentioned by commenter below), Wolf Street and other non-mainstream financial websites. The point being, that political leaders had a stake in allowing the corporations to goose their own stock prices, because it would allow the political leaders to take credit for an overall booming stock market that was, in fact, an illusion. But maintaining the illusion kept the pitchforks at bay for a time, and so the political leaders did their part to keep the grift going. The corporate-state nexus of power and corruption frequently the target of your excellent work.
Most gains are reinvested dividends. IIRC it's 70%.