Saturday, April 23, 2022

Nomi Prins Permanent Distortion: $32 Trillion free FED (and 4 central banks) money since the 2008 "great crash" (and pandemic) means an economic black hole has emerged

 https://www.youtube.com/watch?v=qDqdtkeSwcA

Amazing that this huge free money socialism for the rich elite has not be covered on the corporate-state mass mind control media!! I covered when it got MENTIONED ONCE on MSABCIA news.

Stock Buybacks used to be illegal but the NeoNazi Reagan Revolution made Stock Buybacks now the norm as "asset value" from FED free money.

 Buybacks were largely illegal until 1982, when the SEC adopted Rule 10B-18 (the safe-harbor provision) under the Reagan administration to combat corporate raiders.

Care to guess who the SEC Chairman was in 1982? John Shad.

John Shad was a former executive with E.F. Hutton. It seems odd that someone who worked for a company that directly benefited from the rule change (higher prices equals higher commissions) would be in charge of the agency created to protect investors. In hindsight, it seems like a massive conflict of interest, but I digress.

The reality is that stock buybacks have helped the wealthiest 1% get even richer over the past 36 years.

In 1982, according to the Economic Policy Institute, the average CEO earned 50 times the average production worker. Today, the CEO Pay Ratio’s increased to 144 times the average worker with most of the gains a result of stock options and awards.

 https://www.yahoo.com/video/7-reasons-stock-buybacks-illegal-172253787.html

 Drumpf’s plan was simple: Cut corporate taxes and the savings will be reinvested. The $1.1 trillion in stock buybacks in 2018 suggests that didn’t happen.

 According to Just Capital, 56% of the tax savings from the new corporate tax rate went to shareholders with just 24% allocated to wages and job creation. Just 8% went to improving products and innovating, and the remainder went to lower prices and community involvement. In 2018, the bucket spilled over for stock buybacks. Capital spending, not so much.

In fiscal 2018, CEO Steve Mollenkopf received total compensation of $20.0 million. The year before that it was $11.6 million and $11.1 million in fiscal 2016. Of Mollenkopf’s total compensation, 86% was EPS-related to one extent or another.

Earnings Per Share (EPS)

 Nomi Prins, part 2 interview March 2022

 FDIC is kind of like the government insuring the nuclear power industry. If the economy crashes the elite get free underground cities as per FEMA. Or I mean the elite get free $32 trillion in stock buybacks into Wall street and bank assets.

 

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