Merritt, Good piece. But, not only have the corporations been borrowing to fund the buyback scam, but they have been borrowing to fund normal operations because there is no free cash flow in American industry.
As long as we can bully other nations to buy ever larger amounts of our securities, bulls would be happy. But the simple fact is, they will not buy in ever increasing amounts, which is what this bubble needs. And, if the dollar continues its retreat, it is difficult to see them even maintaining their buying levels in dollar terms. Add that to the fact that shareholders are now demanding cash for takeovers, instead of fake-o stock, and you have a market approaching the precipice, IMHO. |
