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Corporate buy backs of their own shares has been well documented in the last several years but is was always difficult to get accurate figures as to the extent and more importantly the effect of these purchases.  A recent piece in Bloomberg noted the following.  While private investors are selling rapidly corporate America has been a big buyer with purchases of 165 billion as 2015 came to a close.  Deutsche Bank chimed in with a piece indicating that some 25% of Standard and Poors earnings growth since 2012 has come from share buy backs as reducing the number of shares outstanding increase the earnings per share even if earnings in dollar terms remains static.  Given the steady declines in both earnings and revenues of late buy backs were one of the best ways to put lipstick on the pig and keep the party going just a little bit longer.  It seems to me that the piper is going to demand full payment any day now and I expect the tab to be very high indeed.

Iceland was one of the very few if not the only countries to actually jail its bankster executives after the 2008-2009 financial crisis.  Interestingly the Panama Papers scandal led to the resignation of the countries Prime Minister early this week and it wasn’t but a few days after that saw the jailed banksters released from prison after serving just 1-year of their 5-year sentences, for good behavior I’m sure.  Once again money talks and BS walks as it’s shown that the rule of law and taxes only apply to the 99%, as the 1% demonstrate that they can do as they please.  Disgusting doesn’t even begin to describe this.

This is Caleb Lawrence Registered Investment Adviser Inc. Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.

You can catch me on the radio at noon each business day as well on California’s central coast.  KPIG 107.5 FM in the Monterey Bay or KPYG 94.9 FM in San Luis Obispo.

Advisory services offered through Caleb Lawrence Registered Investment Adviser Inc.

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