Federal Reserve Flow of Funds Account Table F107 shows that the Rest of the World bought U.S. bonds on a grand scale during 2005. This signaled a continuation of a long, steady trend of increased purchases of U.S. bonds by foreign investors since 1998, driven by an increasing trade deficit. Over the decade 1995-2004, foreign investors have […]

The S&P500 index rose 2.8% in Q3 2005, manipulated upwards by highly motivated corporate executives intent on using stock buybacks to enhance market ‘performance’ and cash in on stock options — before SEC rules requiring greater disclosure of management remuneration become effective in 2006. (Federal Reserve Flow of Funds Table F213) Stock buybacks by non-financial […]

American corporations reduced the amount paid shareholders as dividends, on a annual basis, to the lowest level in nine years. (Federal Reserve Flow of Funds Accounts, Q3 2005, Table 102). Although after-tax profits were 56% higher than last year, annual dividend payouts as of Q3 2005 were only 58% of amounts paid as dividends in 2004. At […]