A good article.

It is a very good example of what we used to call "Creative Accounting". I also suspect that a good proportion of the money from the Fed is going into these companies, which will lull the Americans into a false impression as to where their economy is heading.

David

One of the lessons of history, is nobody learns the lessons of history.
We saw what happened to the housing market,when it was artificially stimulated/injected with financial steroids.
Now the same flawed thinkers seem to be trying a repeat performance with the stock market.
You will hear them endlessly complain about people putting too much emphasis on P to E ratios and or dividends, rather than the capital gains, or the get rich quick schemes of the shysters?
Simply put, one can avoid the next future shock or market bubble bursts, by focusing on single digit P to E ratios, or double digit dividends, preferably fully franked; or, all the foregoing.
At the end of the day, dividends are the true mark of a company's financial health/competent management/financial accountability, rather than artificially stimulated capital gains.
Gains than may have accrued via asset stripping, fire sales or robbing Peter to pay Paul ponzi schemes?
I've heard of very sharp practices, like sending the same bundle of money around and around through several sister companies, simply to create a false impression of financial/commercial activity, to cheat the taxman, [who treats each as quite separate entities,] or dupe an intending buyer; or, fool the equity markets?
[Not for nothing is it writ large, a fool and his money are soon parted!]
No manager worthy of the title will divest a company of valuable income earning assets, if there is any other options, including layoffs/downsizing or mothballing until the market recovers?
Caveat emptor. Let the buyer beware.
Rhrosty.

The Dow is a casino where, ultra-rich people with access to insider information, fleece gullible punters without compunction or remorse.

The gyrations of the Dow, said by some to be manipulated even by the Press, allow massive fortunes to be made if you're in on the con.

The old saying about there being a sucker born every minute is close to the truth. The Predators hope their victims keep coming!

The US Fed can't stop printing more cyber money because the whole ponzy scam will collapse. We need a Glass Steagall Act to separate their gambling from our assets.

http://cecaust.com.au/ "Bail In" is planned for us.ie a Cyprus style confiscation of bank deposits.