Archive for January 23rd, 2006

Extraordinary Capital Flows Inflate Equity Prices: Q3 2005

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 […]

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