ML-Implode News - $407 Billion in Corporate Stock Buybacks: Tax Reform Promises Dashed; And Even Goldman Balks

"President Trump and Congressional Republicans promised that their massive tax cuts for the wealthy and big corporations would result in workers' pay increasing by at least $4,000 a year. Instead big corporations have doled out over $407 billion to wealthy stockholders and executives since the tax law passed and promised just $7 billion to workers in one-time bonuses or minimum wage increases," said Frank Clemente, executive director of Americans for Tax Fairness. "Shockingly few workers are getting any pay hikes, as corporations have committed 59 times as much to buying back their stock as they have promised to their workers."
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New stock buyback announcements since the tax bill was passed in December are at $407 billion, up from $238 billion on April 9 when the website was launched -- an increase of 71%. The richest 1% own 40% of all stock; the richest 10% own 84%.

And yes, the stench of this is too much even for the venerable Vampire Squid:

Goldman Sachs is voicing skepticism about companies focused on returning vast amounts of cash through buybacks and dividends instead of investing in the future through new factories and equipment...

Surprisingly, Goldman Sachs found that since Trump's election companies that emphasize stock buybacks and dividends have trailed the S&P 500 by two percentage points. Heavy buyback stocks have essentially matched the broader market. On the other hand, companies that are investing in the future are winning.

Relevant:

$407 Billion in Corporate Stock Buybacks: Tax Reform Promises Dashed; And Even Goldman Balks