Smiling all the way to the bank!

Ted Folkert – February 26, 2020

If you should perhaps be concerned about the welfare of the business merger and acquisition market, that market whereby the big companies acquire each other with the excess capital they have garnered by bilking the general public with excessive profits, you can rest assured that they are alive and quite healthy.

During 2019, as reported by Mergers and Acquisitions magazine, there were more than 200 acquisitions with values of between $650 million and $1 billion dollars each. They apparently ran out of space and failed to report the much larger number of deals less than $650 million each.

It has been reported that there were more than 12,000 merger and acquisition deals in the 2019 fiscal year. So, the market is healthy with lots of excess cash lying around. We need not wonder where all that excess cash came from. We know the answer. All of us consumers contributed to this excess with high consumer goods prices, high housing costs, high education costs, high healthcare costs and wages that have not kept pace with inflation.

The inflation we are talking about is the mandatory increase in earnings that all corporate executives are required to demonstrate each year to justify their enormous salaries. It is a continuous spiral in which the wage earners are not allowed to participate.