Stock Market Corruption

From our2029
Jump to navigation Jump to search

QUICK LINKS:
- Departments
- Concerns and Issues

Margin Debt is now over 1 Trillion dollars, that's more leverage than at the peak of the dot-com bubble, or the 2008 financial crash. This is the most dangerous signal in the markets right now.

Currently the FCC and Bank regulators are ignoring 649 U.S. Banks (at the time of posting this) that failed stress tests and did not make their deposit requirement percentages. These are failed American banks, right now. The largest bank collapse before now was 39 banks. Today, there are 649 that are failing, in default, and are being ignored

Stock Buybacks

Stock buy-backs should be illegal. This has increased over time as many CEO's bonus requirements are based on share price, and using company funds to buy back stocks which are then retired, is an easy way for the CEO to force the stock price up to guarantee this bonus. But often, the CEO has the company fire its employees to free up this money for a stock buy back which creates a false rise in stock price without any actual value being added to the company (in fact, it often harms the company, customers, and employees). Or, the CEO uses the company profits for personal gain rather than pushing for company growth. There are also companies which receive Federal money and then use this money to perform stock buybacks which benefits only the wealthy rather than the company as a whole. For most of the 20th century, stock buybacks were already deemed illegal because they were seen as a form of stock manipulation. They have only been legal since 1982 during Ronald Reagan's "trickle down theory" bid which has failed. They were designed as a way to enrich the bosses while the business droops.