The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.
Tuesday, December 4, 2012
Ka-Ching !!!
The Romney Class is going ballistic over the "fiscal cliff" because it means that they will have to start paying their fair share in taxes. Therefore, the number of "special dividends" being paid out is skyrocketing and is now unprecedented in U.S. corporate history. These moves take cash out of companies and generally move the stock price by a commensurate amount e.g. a $1 per share dividend usually equates to a $1 drop in the stock, ex-dividend. So far, there are have been 173 special dividend announcements and the number is going up every day. On the face of it, if the cash is getting re-invested in stocks, then it's a zero sum game, however, at minimum personal taxes to cover the dividends, will be coming out of the market. More to the point, this is money coming out of corporate balance sheets and therefore tens of billions will no longer be available for growing the businesses, which does not bode well for companies' future growth prospects. If the after tax dividend monies are not reinvested in stocks and instead go somewhere else, then it would be one more nail in the coffin for this already-staggering stock market. It would be highly ironic if, in their effort to avoid paying a few percent more in taxes, the Romney Class inadvertently bring this entire shit show crashing down...
