I have noticed a large number of acquisitions lately. I don't know if it is higher than average to be truthful but my sense tells me it is. Every week there have been several.
The reasons there are so many aquisitions is the corporations are being flooded with appreciating assets thanks to the Fed. The are not hiring or investing in long-term structural improvements, but simply acquiring other firms.
What happens when a company acquires another company. Redundant positions are eliminated.
This hasn't been talked about that I am aware of. Perhaps it isn't a major issue. I think it is. I think QEII is very short-sighted...you cannot manipulate our huge and intransigent capital market system without severe repercussions.
Another thing...I worked for a Wall St firm and enjoyed my time and the people are great. But...you cannot have a firm as GS did this week recommending the financials at the same time they are buying. No firm should have both a investment firm and a research firm. The so-called wall that separates them is implausible.
Lastly, no bonuses should be awarded by any of the firms that received tax payer dollars.
I thought they were trying to fix things...not just paper them over until it happens again....
I would appreciate any feedback.