Stock buybacks by U.S. Nonfarm Nonfinancial Corporations reached an annual level of $208.8 billion in Q3 2004, 76.6% higher than the frantic pace of buybacks at the peak of the Great Bubble in 2000.

The level of buybacks was 3.3 times corporate profits after taxes and dividends — an indication of how anxious corporate executives were to give value to stock options before FASB 123 accounting rules kick in later this year.

Profits before taxes in Q3 2004 were 20% higher than in 2000, but buybacks expanded by 77%.

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