When the SEC greatly facilitated corporate share buybacks and executive pay was tied to the stock price, the elements were in place for management to game the system. Stock markets became vehicles for massive extraction, rather than funding, of corporations as these embarked on enormous share buybacks which boosted share prices and executive compensation. While […]
Entries from October 2014
October 12th, 2014 · Comments Off on From Value Creation To Value Extraction
Tags: Reform Capitalism
October 12th, 2014 · Comments Off on Are Central Banks Responsible For Asset Bubbles?
Many assume central banks are the main culprit for creating asset bubbles by running too loose monetary policy. However, central banks are not in control of longer-term interest rates and these have been on a downward trajectory for a couple of decades. We look at what’s behind this. The fact that central banks aren’t the […]
October 12th, 2014 · Comments Off on Japan’s Lost Decades Revisited
Japan’s experiment with Abeconomics remains widely misunderstood. It is modelled on an earlier successful Japanese reflation attempt in the 1930s. Since the eurozone is plagued by similar ills which threaten the stability of the world economy, the experiment has special relevance here. Japan’s Lost Decades Revisited | Seeking Alpha