Tax cut sparks record-setting $178 billion buyback boom

[jpak]

http://money.cnn.com/2018/05/20/investing/stocks-week-ahead-buybacks-tax-cuts/index.html

S&P 500 companies showered Wall Street with at least $178 billion of stock buybacks during the first three months of 2018, according to Howard Silverblatt of S&P Dow Jones Indices.

That's a 34% bump from last year and tops the prior record of $172 billion set in 2007, just prior to the start of the Great Recession. Apple (AAPL) rewarded shareholders with $22.8 billion in buybacks -- the most of any company in any quarter ever.

Total S&P 500 shareholder payouts -- buybacks plus dividends -- for the past 12 months could top $1 trillion for the first time ever, Silverblatt said.

The buyback bonanza occurred during the first full quarter after President Donald Trump signed into law a massive corporate tax cut that was supposed to lift business spending on job-creating investments.

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So much winning!

[LastLiberal in PalmSprings]

1. Wasn't this predicted? Tax cuts don't create jobs or result in U.S. investments

All they do is cause the corporations and the wealthy to sock away more money.

[Wellstone ruled]

2. You got it,

and as we knew would happen is this,83% of these Tax Cuts,Negative Tax Refunds go to off shore Investment entities.

[Cicada]

3. Benefit of tax cut depends

If the Fed is worried the economy may overheat they will raise interest rates to kill the stimulation from increased investment. If the tax cut increases deficits the extra borrowing will draw money away from other investments. But if the economy is slack with little good investment opportunities tax cuts might help I guess. And maybe there are perverse effects. If tax rates decline maybe people will be able to cover their bills by working less. And if tax rates rise maybe they will work more to get enough to cover their bills. Maybe these sorts of complications explain the apparent failure of tax cuts to produce much economic benefit.

[pwb]

4. I thought they said they were going to build buildings and create jobs?

I never thought that for a second.