LOL
Haven't had time to look much at the thread this afternoon, so forgive me if this has already been posted.
Symbol(s) G/FED & Date
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09/28 1:01P (DJ) =DJ Fed Study Sees Stock Prices Slumping Once Buybacks Wane
Story 3585 (G/FED, P/4216, N/DJN, N/DJWI, N/BBK, N/CAC, N/CBK, N/DIV...)
By Joseph Rebello
WASHINGTON (Dow Jones)--U.S. companies have been pumping up the price of
their stocks by spending less on dividends and more to buy back shares, but
the habit is becoming so costly that the spending is bound to slow, a Federal
Reserve study has concluded.
When it does, likely in the "near term," U.S. stock prices could fall as
much as 38%, says the study, one of several the Fed has undertaken to examine
how changes in U.S. compensation practices have affected the economic outlook.
A draft of the study was circulated within the Fed last week.
The study, by Fed researchers J. Nellie Liang and Steven A. Sharpe,
highlights a key fear of Fed policymakers: that the rapid rise of U.S. stock
prices in the last five years, which has fueled the economic boom, has made
the economy vulnerable to a sharp and sudden downturn. Fed Chairman Alan
Greenspan has said the central bank is paying increasing attention to
developments on Wall Street as a result.
Corporate Stk Options Boost Incentive For Repurchases
Fed researchers have concluded, in previous studies, that the tendency of
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