Conservative Economics

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Subject: Neil Cavuto

Neil Patrick Cavuto (born September 22, 1958) is an American television anchor and commentator on the Fox Business Network and host of three television programs, Your World with Neil Cavuto and Cavuto on Business, both on the Fox News Channel and Cavuto on sister channel Fox Business Network.
Cavuto also tapes a nightly wrap up of business news which airs on local FOX affiliates during the late news and has a syndicated radio business news segment that airs on weekday afternoons. He is the senior vice president and managing editor of business news for the Fox Business Network, and oversees content and business coverage.
Cavuto is the author of two books: More Than Money and Your Money or Your Life. (Wikipedia Jan 2010)

Stock repurchases

Buyback bear rages: the worst is yet to come

The Buyback Bear Rages

On September 17, 2007, Capital Flow Watch called the top of the Buyback Bubble, issuing a warning that stock prices might be in for a sharp fall. Throughout the last quarter of 2007, stock prices fell as funding for buybacks began to dry up, while executives rushed to exercise stock options before they were ‘under water’.

Equity sales by households are expected to continue, until executive options are ‘under water’ or until corporations run out of funding for stock buybacks, whichever is first.

The top of the market

Track buybacks with ‘Google Alerts’

Google has useful tools

Google has come out with a new service called Google Alerts that is a great tool for tracking the madness of the US equity market. Sign up and enter the words ’stock buybacks’ and each day your email will bring proof of the lack of market rationality. Googling for ’stock buybacks’ now brings information that suggests that the ‘Buyback Era’ may be drawing to an end.

Featured articles on inside pages

Stock buybacks

WSJ exposes the 9/11 caper

In a major exposé of misused executive options, the Wall Street Journal ran a front page article, reporting that as stocks sank after the the 9/11 attacks, scores of companies rushed to issue options to top officials. Some executives reaped millions.
More ...

Securities Analysis

Intrinsic value

The target of classical security analysis is 'intrinsic value', a fuzzy concept defined as the value justified by the facts. Now, there may be too many 'facts' while prices exceed 'intrinsic value'. 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

What Is ‘International Liquidity’?

It used to be that the term 'international liquidity' meant the relative amount of resources available to a nation's monetary authorities that could be used to settle a balance of payments deficit. In the days of the gold standard, this would mean access to gold that could be used to redeem a nation's currency held by foreigners. More ...

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2010-08-30 16:01