> THEN it must be true that the market can not figure out how to efficiently allocate this $1T of capital.
You're essentially saying companies are choosing to do the wrong thing with their money therefore we're entitled to seize it. If that were a compelling argument, why wouldn't we treat individuals the same? And who do you think stock prices affect, with virtually all of society in the stock market either directly or through pension funds?
By keeping interest rates artificially low, stock buybacks are more appealing than capital investment or labor force expansion. It's simply a logical outcome of the policy our government is pursuing.
You're essentially saying companies are choosing to do the wrong thing with their money therefore we're entitled to seize it. If that were a compelling argument, why wouldn't we treat individuals the same? And who do you think stock prices affect, with virtually all of society in the stock market either directly or through pension funds?
By keeping interest rates artificially low, stock buybacks are more appealing than capital investment or labor force expansion. It's simply a logical outcome of the policy our government is pursuing.