Originally published as a Subscriber Only article on 15 Feb 2016
Have you noticed? Stocks don’t go up anymore unless they announce a multi-billion dollar buyback program, and then the gains don’t last. What’s worse, it should be realized by investors that these buybacks will need to increasingly curtailed as stocks fall with the financialized economy so dependent on asset prices now. So while the high flyers like Amazon are still able to tap the credit markets to continue the Ponzi, as the rot of the collapsing colossus (better know as the economy) continues to spread, these types will be forced to cease this insanity as well, and then we will see the true meaning of the term ‘liquidity trap’ applied to the stock market.