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See The Fed's Financial Repression At Work: How Big Blue Was Turned Into A Wall Street Slush Fund, by David Stockman at Seeking Alpha http://seekingalpha.com/article/2324305-the-feds-financial-r...

It's a good piece, even if you don't share Stockman's view of the US economy and its impending doom http://seekingalpha.com/article/2324315-the-implosion-is-nea...

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That first article is really good (the second reads like the breathless ranting of a conspiracy theorist).

If other major companies are doing the same thing as IBM (seems likely), then it's the best explanation I've seen for the stock market boom over the last couple years. There has to be a way to incentivise these companies to create real, long-term value over short-term stock price manipulation.

After a while they just get too big to do it. But that's ok. As long as someone is willing to buy the bonds, there's nothing wrong with shuffling the capital structure.

In theory, some people need fixed income instruments (say insurance companies) so there is a market for it.

If the people with risk capital want to place it on smaller more innovative companies, why not?

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