by Karl Denninger
Where are the ****ing cops?
Seriously — all these companies that have been buying back stock at 20, 30, 50% higher prices than their stock is selling for now!
If these “plans” were really about boosting shareholder value then if the price goes down 50% they’d double the rate of buying. Twice as many shares taken out of the market for the same money!
Guess what — effectively all of them have stopped.
That’s proof, folks, that these are frauds. As I have repeatedly pointed out the reason this used to be illegal is that it is essentially always a means of stripping the equity of the public owners and handing it to insiders without fair disclosure or debate.