Look like the word "transitory" is not used anymore. How about hyperinflation or stagflation?
American Economics Thread
- Thread starter Bernard
- Start date
Stock buybacks surge to $850 billion in 2021, setting new record
Private debt to GDP is higher than before the 2008 financial crisis.
I think US corporations are borrowing an insane amount of cheap money to keep their market value inflated.
We are living in uncertain and scary times
Stock buybacks is the equivalent of digging holes and then refilling them in order to create fake GDP.
Should be banned
@Overbom @tokenanalyst bro what happen if the FED increase interest rate, will that sink the stock market?
From what I learnt, they are mostly employing private lending instead of issuing bond. Private lending has become very hot in recent years, due to their floating rate structure ( Oaktree, Apollo, Owl Rock and Blackstone are lending out with interest at 450-500 basis points above libor rate, so the average rate is currently running at 8-9% per annum ), and with lower default rate than publicly traded bond securities.
Huge amount of institutional money are rushing into pr lending sector now that Fed is about to rise the interest rate.
Can't say for sure but there is a very high probability of it happening. But I am still convinced that the stock market is not the real economy, the 2008 market crash was not the cause of the financial crisis but a symptom. What is dangerous is maintaining an inflated market bubble that drains the economy of productive money. As the semiconductor companies spend hundreds of billions on stock buybacks, they ask the government to spend hundreds of billions.
Nice that they are wasting money they could be spending on R&D on stock buybacks.
It will just lead to the continued degeneration of US industry.
They also aren't raising salaries with that money. Which means US average incomes in real terms will continue to slide downwards.
It will just lead to the continued degeneration of US industry.
They also aren't raising salaries with that money. Which means US average incomes in real terms will continue to slide downwards.
@gelgoog bro IF ever TSMC and Samsung solve the yield problem of their 3nm project, will these be the last? what I meant is with the cost associated with shrinking the node further down to 2nm or 1nm and the harvesting of their research by the US. Will they be motivated to do more especially IF China is able to have a breakthrough and her company was sanction to help US company compete?
They can officially put them greenbucks in their @sses lol