“Businesses invest to meet anticipated or actual demand. Not because they have more money. Why is there little demand, not business investment, is the real question. Demand is weak because there is little increase in disposable income for all but the wealthy and high end professionals
Isn’t it rather premature to render such evaluation at this point? Maybe. Spokesmen for corporate America confirming to White House thus far primary use of corp tax cuts will be buybacks and dividends. White House did not expect that outcome, should have asked SEC to have fresh look at SEC reg 10b-18 to curb execs use of buybacks at time of tax cuts…
Ultimately the key question ahead for Fed & other Central Banks is how to manage deleverage of economies and financial markets w/o a market crash from such a high level of debt–or at least moderate a downslide.”
Dr. Harald Malmgren, twitter 3/13/18
