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"The chart below shows something absolutely amazing: while there are clearly other fungible "sources and uses of funds", what all the leveraging activity of the current century boils down to is the following: virtually every single dollar raised through issuance of debt has been used for one thing - to buyback stock!To be sure, other sources and uses of cash can be comparably tracked, and this is not to say that companies haven't used their own organic cash creation, declining as it may be, for other purposes such as spending on CapEx and M&A, but the chart does show that in isolation from all other sources and uses of funds, several trillion in fungible debt has had just one simple use - to boost stock prices, and to make management teams richer, while letting bondholders managing other people's money foot the bill for record high management bonuses and stock prices.Behold - what all the debt issued in the 21st century (and really ever since 1990) has been used for:"
"The chart below shows something absolutely amazing: while there are clearly other fungible "sources and uses of funds", what all the leveraging activity of the current century boils down to is the following: virtually every single dollar raised through issuance of debt has been used for one thing - to buyback stock!To be sure, other sources and uses of cash can be comparably tracked, and this is not to say that companies haven't used their own organic cash creation, declining as it may be, for other purposes such as spending on CapEx and M&A, but the chart does show that in isolation from all other sources and uses of funds, several trillion in fungible debt has had just one simple use - to boost stock prices, and to make management teams richer, while letting bondholders managing other people's money foot the bill for record high management bonuses and stock prices.Behold - what all the debt issued in the 21st century (and really ever since 1990) has been used for:"
[text] All Corporate Debt This Century Has Been Used for Stock Buy Backs | Zero Hedge
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