>Intel made $6 billion in profits last year. It spent $6.7 billion buying
>back stock, so that it actually has less cash than it did a year ago.
>Dell, one of the most profitable companies in America, actually borrows
>money every year to buy back stock. In effect, the management is looting
>their companies to keep up the ridiculous stock prices. And these are
>two real companies with real businesses that make real money. I shudder
>to think what's going on elsewhere.
Elsewhere, they're issuing junk bonds to buy their own stock. Since 1982, U.S. nonfinancial corporations have retired a net of $997 billion in stock through takeovers & buybacks.
Meanwhile, the euro is up today against the dollar, in the wake of the Brazilian shock. This suggests the dollar may have a serious rival on its hands, not only for reserve currency, but for "safe haven" status in a crisis.
Doug