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Capital

Oil Companies Will Be Bad Investments Within Five Years, Predicts Survey Of European Fund Managers

European fund managers are casting an increasingly skeptical eye towards the oil industry, concluding that the industry’s financial future looks grim, according to a new survey published by a London-based organization today. Just 18 percent of the responding fund managers, including representatives of firms based in the UK, France, Spain, and Italy, predicted that “oil companies will be good investments if their business is still focused on fossil fuels in five years’ time,” according to the survey, published by the UK Sustainable Investment and Finance Association (UKSIF) and the Climate Change Collaboration.

Stock Buybacks Will Hit $1 Trillion In 2018

US corporations will buy back their own stock at a record clip of $1 trillion this year, according to an analysis issued by Goldman Sachs on Monday. The Wall Street giant attributed the surge in share repurchases to booming corporate profits and Trump’s $1.5 trillion tax cut for corporations and the wealthy, which was passed by Congress and signed into law last December. In a note to investors, David Kostin, chief equity strategist at Goldman, gushed that investors were likely to see the impact of the buybacks in higher share prices and fatter stock portfolios very quickly. The scale of the buyback spree is massive. Second-quarter 2018 stock repurchases are up 57 percent from the same period a year earlier. In the tech sector, the year-over-year increase is 130 percent.

Rumors Grow That U.S. Fed Is Propping Up Stock Market

It’s not every day that three well-credentialed men are willing to put their names and reputations behind the allegation that the U.S. Federal Reserve is rigging the stock market. But that’s exactly what happened yesterday. Paul Craig Roberts, a former Associate Editor of the Wall Street Journal and Assistant Secretary of the U.S. Treasury under President Ronald Reagan joined with Economist Michael Hudson and Wall Street veteran Dave Kranzler to write that “it appears that in May 2010, August 2015, January/February 2016, and currently in February 2018 the Fed is rigging the stock market by purchasing S&P equity index futures in order to arrest stock market declines.” This is not the first time the Fed has come under such suspicion.

Stock Market Designed To F**k 90% Of Us

As the stock market had its largest one-day drop in decades, what our media won't tell you is that 84% of stock wealth is in the hands of the top 10%. Looking at the stock market to judge the economic health of our country is actually like looking at a dying man and judging his health based on how the leeches look. Most Americans do not benefit from it as the rich play with lives. But that's just half of the story. Redacted Tonight's Lee Camp has the censored side of our volatile economy.

Investors Finally Facing Up To Climate Change

Over 200 companies have pledged greater transparency on reporting climate-related risks in their businesses as part of a voluntary program led by U.S. billionaire Michael Bloomberg. The former New York mayor and Mark Carney, the governor of the Bank of England and chairman of the Financial Stability Board, said Tuesday that the number of companies supporting the program had more than doubled since its recommendations were first published in June. The 237 companies, with a combined value of over $6.3 trillion, include construction firms, energy companies and financial institutions from 29 countries. Carney said the Task Force on Climate-related Financial Disclosures plans to report on its efforts when leaders of the Group of 20 leading industrialized and emerging economies meet in Argentina in a year.

After Piketty, The Ownership Revolution

Now that the first round of intellectual debris left in the wake of French economist Thomas Piketty’s explosive best-seller “Capital in the Twenty-First Century” has begun to settle, it may be time to look more closely at the gaping hole it has left not only in political-economic analysis but also in conventional political strategy. After Piketty documented long-running trends that have turned over ever-increasing shares of national income to the owners of capital at the expense of the vast majority, the best solution he could muster was what he termed a utopian idea: a global tax on capital. Liberal economists, for their part, have largely rolled out the usual list of progressive tax reforms, often conveniently forgetting to confront the extraordinary political obstacles that stand in the way of any one policy remotely powerful enough to tackle the forces Piketty documents. What forces, you may ask? How about the fact that a mere 400 people at the top now own as much wealth — or capital, in Piketty’s inclusive formulation covering stocks, bonds, businesses, land and any other significant asset — as the bottom 180 million Americans. The best we have been offered in response to this medieval pattern is the vague hope that a cycle of history may one day bring progressive policy back in vogue. Or that demographic shifts may not only allow the election of Democrats but also award them sufficient power to effect trend-altering change rather than modest reforms that utterly fail to divert the steady and ongoing allocation of the nation’s income to those who own capital or work cheek by jowl for them.
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