the cause of market rallies is . . .

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Number of messages in the thread: 3

1. Date: 2008-10-06 21:53:36
Subject: the cause of market rallies is . . .
From: <w...@n...net> Search message by this author

. . . corporate stock buybacks.

Where real earnings are used to buy paper instead of
investing in plant, equipment, R&D, etc.

It is the ultimate lunacy of the capitalist/financial system,
and utimately will break the back of the whole system.

Meanwhile, buybacks cover the sales of insiders, and the
smart money.

It's been going on for about a decade.

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2. Date: 2008-10-06 22:35:00
Subject: Re: the cause of market rallies is . . .
From: Pies de Arcilla <d...@g...com> Search message by this author

On Oct 6, 5:53 pm, <w...@n...net> wrote:
> . . . corporate stock buybacks.
>
> Where real earnings are used to buy paper instead of
> investing in plant, equipment, R&D, etc.

I don't see why a buyback is ultimately any different from a dividend
that's reinvested.

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3. Date: 2008-10-06 22:52:32
Subject: Re: the cause of market rallies is . . .
From: BuffetHater <B...@g...com> Search message by this author

> I don't see why a buyback is ultimately any different from a dividend
> that's reinvested.

Because they are always timed to coincide with directors and execs
stock awards and option exercise. Look at bank exec sales surround
buybacks, its laughable.

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