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Stock buyback fraud

The Buyback Bubble is now official!

An equity market in disequilibrium can suddenly come tumbling down.

The Federal Reserve flow of funds accounts have signaled that there is a massive disequilibrium in the US equity market for over a year. Most investors will pass through these days of madness, hardly appreciating the spectacle that surrounds them.

However, I will step into the breach and make an unsolicited public service announcement:

“The Great Buyback Bubble is now official! Look around you and behold!”

Featured articles on inside pages

Stock buybacks

Stock buybacks dry up

Since 1982, US equities have been driven upwards by stock buybacks. Federal Reserve statistics show corresponding sales of stocks as executives exercised options to take advantage of manipulated prices. More ...

Securities Analysis

Innovative institutional research methods

The Crash of 2008 led to questions concerning the scope and quality of institutional investment research. The flood of open source investment data on the Internet presents opportunities to researchers.There are new ways to manage institutional research, including separation of fact-gathering from data analysis, out-sourcing, student-sourcing, and home-sourcing, financial taxonomy, and semantic wikis.
More ...

US Politics

Why Congress won't kill ACORN

Closely connected with President Obama, the ACORN group of "community organizers" has drawn censure from the Democrat-controlled Congress as a result of investigative reporting by James O'Keefe and Hannah Giles. More ...

US equities

Professor Siegel’s Epiphany

The topic "Baby Boom — Baby Bomb?" was debated by Michael Milken and Professor Jeremy Siegel in April 2006. This debate was featured in BusinessWeek in the article, "When Boomers Cash Out: A buy-and-hold legend sees tough times ahead." Professor Siegel is the guru of the Common Stock Legend.
More ...

US Bonds

Bond demand exceeds supply for a decade

Over the decade, 1995-2004, the demand for US bonds of all types has surpassed new bond issues in eight of the last ten years. This is the reason that bond prices have held firm, even in 2003, when net new issues reached almost $1.8 trillion. More ...

World Economy

Signs of US losing its groove?

Thirty years ago, US income from abroad was more than double the amount of income that the US paid to the rest of the world. This year, or the next, this foreign income surplus may disappear forever. Is the US 'losing its groove'? More ...

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Capital Flow Watch has hundreds of articles on economics and investments.

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Stock Quotes

DJIA12266.75  chart +0.53%
NASDAQ2744.97  chart +0.35%
S&P 5001312.62  chart +0.57%

Ftse 1005896.87  chart +0.46%
Dax7039.31  chart +0.18%
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Nikkei 2259441.03  chart +0.00%
Hang Seng Index23520.62  chart -1.30%
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Eur To Usd1.43  chartN/A
Usd To Jpy82.59  chartN/A
Gbp To Usd1.63  chartN/A

2011-04-19 16:02