Money doesn't work anymore, thanks to Harvard professors

Why Stock Buybacks Are Dangerous for the Economy

Even as the United States continues to experience its longest economic expansion since World War II, concern is growing that soaring corporate debt will make the economy susceptible to a contraction that could get out of control. The root cause of this concern is the trillions of dollars that major U.S. corporations have spent on open-market repurchases — aka “stock buybacks” — since the financial crisis a decade ago. In 2018 alone, with corporate profits bolstered by the Tax Cuts and Jobs Act of 2017, companies in the S&P 500 Index did a combined $806 billion in buybacks, about $200 billion more than the previous record set in 2007. The $370 billion in repurchases which these companies did in the first half of 2019 is on pace for total annual buybacks that are second only to 2018. When companies do these buybacks, they deprive themselves of the liquidity that might help them cope when sales and profits decline in an economic downturn.

The problem is that debt is mis-priced because of our foul central banker.  Mostly our Fed has been bailing out Treasury, who own all that debt on the balance sheet.
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The result is an imbalance, since all the borrowing is government and all the deposits are private banks. Hence, at any given time, the true nature of liquidity is not know well and corporations are withdrawing from money and holding stocks instead.

Essentially the problem boils down to a bunch of Harvard Finance Professors who are clueless about how banking works. These same Harvard Professors are likely to screw up our next Nixon Shock, maybe worse than they did during the Nixon era. If the professors to foul the central bank system once more then we are better off holding stocks.