Do you recall when, in the months before the Lehman Brothers collapse and bankruptcy in 2008, I stated that the Company is too smart to be buying $1.7 billion of their stock at a market cycle top? I went on to say they were buying all the securities from family, friends and best clients to provide all the funds those people would need to buy shares at much lower prices after the next Bear.
In other words, I believed Lehman was ripping off the market. And they did.
Same thing is happening today. Yesterday, Morgan Stanley (MS) announced a major share buy-back plus a 50% increase in dividends. Their treasury is now in the process of being raped.
Do you recall how shortly before the 2008 market crash, Wall Street was advocating massive dividend increases? Again, who was benefiting more than family, friends and best clients?
Well, Wall Street is at it again.
Given that this process is happening at cycle tops, when costs are enormous, rather than at cycle bottoms, when market support is needed, I must believe it is a plan. A plan to screw the rest of us."
(thanks to Wile for this)