via RetailDive I by Ben Unglesbee I November 15, 2021

Stock buybacks are back, baby

…”William Lazonick, president of the Academic-Industry Research Network and a professor emeritus of economics at the University of Massachusetts, said that buybacks were being fueled by public spending to the extent that “profits are being generated by the fact that you’re getting up to more capacity and revenues are being supported by huge government spending.”

Lazonick pointed out this applies to both fiscal spending such as stimulus checks and enhanced unemployment benefits as well as the Federal Reserve’s quantitative easing measures. The latter has lowered the costs of borrowing and supported more debt financing, which in some cases, such as Lowe’s, could go to stock repurchases. It has also pushed more money into the stock market as investors seek yield, raising values…”

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