US stock buybacks are killing economic growth:
"How they work is simple: Companies repurchase their own stock, inflating paper profits without producing anything of tangible value—such as investing in R&D, wages or plants and equipment. Since 2004 more than $6.9 trillion went into them, according to data compiled by Mustafa Erdem Sakinç of The Academic-Industry Research Network.
According to Goldman Sachs, stock buybacks will surge by 18 percent in 2015, exceeding $600 billion and accounting for nearly 30 percent of total cash spending.
Read MoreShare buybacks: Boon or boondoggle for investors?
A further deep dive into the trend reveals some startling facts. Excluding recession years 2001 and 2008, dividends and stock buybacks have represented on average 85 percent of corporate earnings since 1998, according to analysts at S&P. And stock repurchases worth almost $2 trillion have helped buoy the bull market since March 2009, according to FactSet data compiled for CNBC."
'via Blog this'
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