Schwab's Sonders Says 2018 Likely Peak for Buybacks

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.

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.

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.

What year is suggested as the peak for stock buybacks?

• 2020

• 2018

• 2016

• 2015

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.

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.