The stock market is at an
all-time high with the Dow Jones at 16,695, while the economy is mixed and lots
of unemployed are hurting and the housing market is still weak. There seems to
be a lot of money sloshing around. Its
owners do not want to accept the low returns from ordinary investments so are
seeking high returns from those more risky.
Big companies are using their profits to buy other companies. AT&T is willing to pay $50 billion for
DirecTV. The Republicans say that we can’t
tax these profits because they provide jobs.
Bloody nonsense! Many companies are
cutting R & D spending. More than a
quarter of the 121 companies in the S&P 500 reported spending less than
they did last year. (USA Today) Investors
rewarded these companies with higher stock prices. Everyone knows that if you cut spending, you
increase profits! And their CEOs are
paid big bonuses for this logic.
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