Schwab's Sonders Says 2018 Likely Peak for Buybacks

Schwab's Sonders Says 2018 Likely Peak for Buybacks

Assessment

Interactive Video

Business

University

Hard

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The video discusses the debate over stock buybacks, highlighting a Twitter exchange between Lloyd Blankfein and Bernie Sanders. Blankfein defends buybacks, while Sanders criticizes their impact on wealth inequality. The discussion shifts to the rationale behind buybacks, especially in low-interest environments, and the potential peak of buybacks in 2018. An economic inflection point is noted, with labor's share of GDP starting to rise, impacting profit margins and suggesting a shift favoring Main Street over Wall Street.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main criticism Bernie Sanders has regarding stock buybacks?

They reduce company profits.

They are illegal.

They lead to higher taxes.

They increase the wealth of billionaires.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why did many companies choose stock buybacks over long-term investments in recent years?

Because of low interest rates and lack of investment confidence.

To increase employee wages.

Due to high interest rates.

To avoid paying taxes.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What year is suggested as the peak for stock buybacks?

2020

2018

2016

2015

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What economic trend is highlighted as beneficial for workers in the third section?

Decrease in labor costs.

Increase in labor's share of GDP.

Higher stock buybacks.

Lower interest rates.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the potential downside of the economic shift discussed in the third section?

Implications for profit margins.

Higher inflation.

Decreased stock prices.

Increased taxes.