drew

Which form of financial engineering would you ban, and why stock buybacks?

Ban index funds, they are antitrust nightmares that drive prices up for commodity goods like airline tickets

I'm mostly trolling, but the theory is that because index funds own competing companies, they create perverse incentives for shareholders where they benefit from industry-wide price hikes instead of price competition

The classic example for this theory is airlines. If ilmy index fund owns both Delta and United, I as a shareholder benefit from both airlines raising prices together and becoming more profitable in the aggregate instead of actually competing