Another great video from Charles Biderman…
“Where did the companies get the money to shrink the number of shares outstanding and why are they buying their shares back, you ask?
“Where they got the money is simple. The Fed is keeping interest rates at zero and is still printing over $100 billion each month to fund the deficit. Given 0 interest rates and the huge amount of newly created money, companies have added huge amounts of cash to their balance sheets. The reason they are using some of that money to buyback shares is that with 0 interest rates, they are earning nothing on that idle money.”
Watch the full video here:
“Where they got the money is simple. The Fed is keeping interest rates at zero and is still printing over $100 billion each month to fund the deficit. Given 0 interest rates and the huge amount of newly created money, companies have added huge amounts of cash to their balance sheets. The reason they are using some of that money to buyback shares is that with 0 interest rates, they are earning nothing on that idle money.”
Watch the full video here:
Mr. Biderman’s newest video is also a great view, which further describes the Road to Perdition – government style.