Over one trillion dollars in stock buybacks this year. The Tax Scam worked.

[WeekiWater]

The massive corporate tax rate drop has been wildly successful. It couldn’t overcome real market forces. Corporations have repatriated enormous sums of foreign profits and used much of it to buy back stocks. Many analysts are saying this trend will actually increase in 2019.

Without provisions in the tax scam to give employers incentive to hire or increase pay for workers this massive repatriation of money is simply being shifted around by the investor class and artificially inflating the value of corporations. It is doing nothing for workers. Get that. With this continuing to happen the market is still going down. Without the tax scam we would be seeing a huge downturn.

So how is the market taking a downturn if many of the metrics look pretty solid and companies have been able to artificially increase their worth through the tax scam? I believe one of the main factors is that the market was already way overvalued. As a whole, it hasn’t been a true reflection of its value for years. There are other reasons but this one is major and highlights the real irrisponsibility of the tax scam, leaving out ethical and moral arguments.

The tax scam was an enormous screwing over of American workers and has delayed a massive market correction. It will continue to delay that correction into 2019. The correction would be huge without the tax scam. It’s nothing more than a dream for the investor class and an artificial propping up of an overvalued market.

It has been successful for political reasons and for the investor class. That is why I call it wildly successful. It’s slowing the bubble from popping. Without it Republican would be hurting even worse right now as the markets would be going through a more realistic correction. A deep dive.

I personally like the moral and ethical arguments when it comes to taxation. But the real shifting of money and end results of changes to tax law must be analyzed. The tax scam helped no one outside of the wealthy and is temporarily helping Republicans. That couldn’t last as overvalued is overvalued. It considered the American worker in no way.

The tax scam is one of the most irresponsible pieces of legislation I have seen in my lifetime.

[GitRDun]

1. That's just the first part of the scam

Part 2 is covering up the fact that these corporate leaders are fucking lazy and stupid.

Stock buy backs reduce the number of shares outstanding.

If you reduce the number of shares, you can increase earnings per share by doing NOTHING!

Stock prices are based in large part by EPS (earnings per share).

Stock buy backs means higher EPS even if you do nothing.

Corporate leaders bonuses based on stock price are thus paid with no added value to investors.

The public falls for this PONZI scheme over and over and over.

Wake up and smell the coffee America.

Perhaps we should send the financial guys back to bean counting and put the scientists, chemists and engineers in charge again.

[WeekiWater]

2. One of the main points you hit...

Is synonymous with my phase of artificially inflating. Stock buybacks.

Spot on!

[smirkymonkey]

3. K&R and bookmarked!

I am just worried that is all going to come crashing down once a Democrat is back in office and then we will get the blame for it.

[bitterross]

4. The Market Has Been Overvalued for Some Time Now

If I'm not mistaken, most reasonable, logical, economists have said the market is overvalued and a correction is necessary. There is another crash coming. How soon, I do not know. It is my hope it happens under Trump. Of course, he'll blame the Democratic-controlled House and his cult will believe him.

I think this is a good article.

https://www.marketwatch.com/story/the-average-stock-is-overvalued-somewhere-between-tremendously-and-enormously-2018-10-01

I really like Robert Reich too.

https://www.truthdig.com/articles/robert-reich-the-next-great-crash-is-coming/

[WeekiWater]

5. I believe the market correction is currently happening...

But is being artificially held up by the massive inflow of foreign profits because of the tax scam. Those profits are in large being used for stock buybacks.