Tuesday, February 20, 2018

Combined with ETF, debt cartel and pension funds

Bloomberg explains the logic: Companies over the past decade or so have significantly increased buybacks to the point where they are now collectively the largest single buyer of stocks. Some have called the market self-cannibalizing. Equity shrink is the nicer way to say that.
We get giant loops, and twice around the loop we requant. 

 The banking process resets interest charges higher once bankers figure out the feedback loops. If the trade book shows a periodicity then the pit boss marks to market upon sight.  Otherwise paying off the previous eight years of government imbalance, once the spiral is spotted.

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