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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

Buybacks + options + hedge funds

Stock buyback programs are a legalized form of market manipulation, sanctioned under SEC Rule 10b-18 and that serve to drive up the price of a company's stock and to give false value to executive stock options.
More ...

Securities Analysis

Does ‘SEC Total Return’ protect investors?

Millions of investors put money for retirement into mutual funds selected on the basis of "SEC total returns" and the name of the fund. This article explains how the SEC allows funds to use this misleading statistic to the detriment of investors and to the benefit of fund managers. More ...

US Politics

The decline of mainstream media

In September 2009, President Obama dominated television in his attempt to sell his government-run health plan, despite massive public opposition. Mainstream media has falling revenues and market share as people turn to unbiased sources. More ...

US equities

Do stocks offer protection against inflation?

There is a common belief that a managed, diversified portfolio of US common stocks provides protection against inflation. However, there is reason to question whether this protection currently exists.
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

DJIA12453.54  chart +1.52%
NASDAQ2802.51  chart +2.10%
S&P 5001330.36  chart +1.33%

Ftse 1006022.26  chart +2.08%
Dax7249.19  chart +2.90%
Cac 404004.62  chart +2.40%

Nikkei 2259659.60  chart +0.55%
Hang Seng Index24099.13  chart +0.85%
Straits Times Ind3196.96  chart +0.98%

Eur To Usd1.46  chartN/A
Usd To Jpy82.27  chartN/A
Gbp To Usd1.64  chartN/A

2011-04-20 16:04