Companies Use Borrowed Billions to Buy Back Stock, Not to Invest
This trend of borrowing money to buy your own stock reeks of market manipulation.<p>Corporate debt to gdp is at a record high, and they&#x27;re funneling the money into stock buybacks and dividends. I don&#x27;t know why this isn&#x27;t of interest to the other commentors here.<p>The stock market has been eerily predictable and calm for the last few years, and I think this is why. The game is to lull investors into a false sense of confidence that the market <i>never</i> falls beyond the scope of a few weeks or so.<p>To the low information investor, everything looks great, and also when there are a lot of low information investors in the market, stock buybacks tend to increase the price.