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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: Maple MAGA who wrote (1359398)5/21/2022 9:58:34 AM
From: Jamie153  Read Replies (2) | Respond to of 1572921
 
Let's review that "cleaning out" process for a sec. In the 1990s, there were over 8000 public companies to invest in. Today, the Wilshire 5000 has a hard time finding 3500. More money than ever but fewer companies to invest in and this forces stock prices up. We have to agree on this because there isn't an alternative.

Then these same companies buyback stock and reduce the stocks available for sale causing their prices to go up again. Again, we can't disagree.

Then, many companies pay the CEOs stocks instead of a salary so every time he/she gets paid the stock goes up. Everything is geared toward rewarding fewer companies and fewer people with more dollars and reducing the # of shares (stock inflation).

I agree with you on your last point, that recessions can be good for the economy, but the damage caused by serious recessions seldom goes away. Poverty rates take a decade to return to normal (the Reagan and Bush recessions). The debt soars and it never gets paid back, etc.

I don't see any reason for a crash. Very high demand when supply is low is basic economics. This is nothing.