By Q1 2006, stock repurchases by domestic non-financial corporations had multiplied to five times the level of 2000, the peak of the Great Bubble of the 1990s. With buybacks accelerating at an annual rate of 25% throughout 2005, and with net corporate profits after taxes increasing only 5.5% a year, it is now probable, if recent buyback-option trends persist, that by 2009 — the eve of retirement of the Baby Boomer generation — corporate stock buybacks will surpass net corporate profits after taxes.
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