Big Profits Drove a Stock Boom. Did the Economy Pay a Price?

Average Sentiment: Highly Positive (2.97)
Thursday 11:48 GMT
Category: Economy

In this economy, stock prices don’t just reflect the future stream of normal economic returns that would accrue to a company’s capital investment.

The scholars argue that the American economy is afflicted by “rents” — returns in excess of what investments would yield in a competitive economy, where fat margins are quickly whittled away by competition.

“Four hostile newspapers are more to be feared than a thousand bayonets...” ― Napoléon Bonaparte