Criss cross

[Jimbo]

THATS WHY SO MANY COMPANIES PAY LOUSY DIVIDENDS

 

Have you wondered why dividends have declined so greatly and been replaced by stock buy backs - usually financed by debt.

 

Its because dividends go to ALL shareholders while with stock buy backs the cash goes to the SELLERS eg the management cashing in their option bonansers.

 

 

Just look at Burlington Northern - its stock buybacks are financed by rising debt- this is simply unsustainable they will either have to:

 

1/ Suspend the stock buy back.

2/ Suspend the dividend.

3/ Cut back on capital expenditure.

[vitrofan]

I've come to the CONclusion that the stock market will NEVER recover. Many special situation individual issues will provide big gains if timed correctly, but the major common stock fraudexes will NEVER see their highs again, not in real dollars, NOT EVEN IN NOMINAL DOLLARS. The reason is not just because TPTB want to ensure J6P NEVER breaks even on his 201k, but more importantly, because corporate insiders have figured out that they can steal most of the operating cash flow directly into their pockets plus grant themselves stock options plus issue more common shares without the shareholders revolting, so common will be diluted and diluted and diluted and even fullzeroed and reissued, with Mom and Pop 201k bagholders robbed blind.

 

Not that it will matter much longer fer most folks, since the Constitutional Republic of the United States of America effectively no longer exists anyway. The eCONomy will NEVER recover. The majority CONsumers have learned to (temporarily but terminally) vote themselves unlimited money ripped outta the aSSes of the minority producers, who also will not revolt, just pathetically grind away at their private sector W-2 jobs until death, rendered impotent by wage deflation, expense inflation, and taxes. The parasites are CONsuming the hosts, and the decay is much further along than is widely realized. If you can do the math (i.e., you got edumucated somehows outside publick screwel) you realize it's ALREADY over. 1% will live like kings inside gated estates with private armies while outside the walls the other 99% will be pitted off against each other in a barbaric jungle culture of dumbed down perverted morans in a 24/7 angle-running Al-in-Wunderland gropefest and less-than-zero-sum rob-thy-neighbor Olympiad, with every moral and ethical constraint intentionally lifted, so aSS to make a more entertaining show for the privileged claSS enjoying the maSS carnage, disease, decay and anarchy remotely from inside their walls.

 

House prices will NEVER recover either because the entire Bubble was simply 100% mortgage fraud. Houses are not aSSets, they're liabilities and tax targets.

 

Yep. It seems most aspects of life for most people have become farcical.

[Jimbo]

SELL IN MAY AND GO AWAY

 

Might be the right play this year.

 

We will see.