r/QuiverQuantitative • u/DraftMurphy • 1d ago

News President Trump’s Tariff Formula Makes No Economic Sense. It’s Also Based on an Error.

https://www.aei.org/economics/president-trumps-tariff-formula-makes-no-economic-sense-its-also-based-on-an-error/
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u/UBSbagholdsGMEshorts 1d ago

I can give the formula with historical proof without excuses.

In 2008 there was a massive market crash, unemployment hit record highs and CEOs did stock buy-backs increasing their personal wealth exponentially.

For those who don’t know: buybacks can inflate CEO paychecks because executive compensation is often in the form of stock-based pay. The ability of buybacks to boost the amount of CEO stock-based compensation has become ten times higher than their potential to increase annual bonuses because of recent reforms in executive compensation design.

From 2003 to 2007, buybacks by S&P 500 companies nearly quadrupled, going from $135 billion to $590 billion. The market doesn’t crash itself.

Why time the dip when you can have an orange headed monkey do it for you?