--- title: "Meaning & Key Takeaway of: The other dynamic keeping the stock…" description: "\"The other dynamic keeping the stock market up - both for technology stocks and others - is that companies are using a lot of their income for stock buy..." image: "https://sms4smile.com/quotes/i/437/michael-hudson-2134_behinds_the-other-dynamic-keeping-the-stock-mark_858485.jpg" --- # The other dynamic keeping the stock market up - both for… ![“The other dynamic keeping the stock market up - both for technology stocks and others - is that companies are using a lot of their income for stock buybacks and to pay out higher dividends, not make new investment,. So to the extent that companies use financial engineering rather than industrial…” quote by Michael Hudson](https://sms4smile.com/quotes/i/437/michael-hudson-2134_behinds_the-other-dynamic-keeping-the-stock-mark_858485.jpg) [Download](https://sms4smile.com/quotes/i/437/michael-hudson-2134_behinds_the-other-dynamic-keeping-the-stock-mark_858485.jpg) [Open image](https://sms4smile.com/quotes/i/437/michael-hudson-2134_behinds_the-other-dynamic-keeping-the-stock-mark_858485.jpg) > “The other dynamic keeping the stock market up - both for technology stocks and others - is that companies are using a lot of their income for stock buybacks and to pay out higher dividends, not make new investment,. So to the extent that companies use financial engineering rather than industrial engineering to increase the price of their stock you're going to have a bubble. But it's not considered a bubble, because the government is behind it, and it hasn't burst yet.” [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Companies boost stock prices via financial tricks like buybacks and dividends, creating a bubble that’s ignored because of government support. **In simple terms:** Financial engineering inflates stock values, risking a hidden bubble. Key Takeaway Watch for unsustainable financial practices. Themes finance stock market government policy economic bubbles Mood cautious critical Type analytical explanatory When to use this quote - investment decisions - corporate finance - regulatory oversight Key Concepts financial engineering macro economics policy analysis Questions to Reflect On - What are the long‑term effects of buybacks? - How can policy prevent bubbles? A Different Perspective The analysis may oversimplify complex market dynamics. ★ ★ ★ ★ ★ No ratings yet [Behinds](https://sms4smile.com/quotes/about/behinds/) [Bubble Considered](https://sms4smile.com/quotes/about/bubble-considered-825709/) [Bubbles](https://sms4smile.com/quotes/about/bubbles/) [Company](https://sms4smile.com/quotes/about/company/) [Considered Bubble](https://sms4smile.com/quotes/about/considered-bubble-825711/) [Dividends](https://sms4smile.com/quotes/about/dividends/) [Engineering](https://sms4smile.com/quotes/about/engineering/) [Engineering Increase](https://sms4smile.com/quotes/about/engineering-increase-825712/) [Financial](https://sms4smile.com/quotes/about/financial/) [Government](https://sms4smile.com/quotes/about/government/) [Higher](https://sms4smile.com/quotes/about/higher/) [Higher Dividends](https://sms4smile.com/quotes/about/higher-dividends-825713/) [Income](https://sms4smile.com/quotes/about/income/) [Increase](https://sms4smile.com/quotes/about/increase/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investment](https://sms4smile.com/quotes/about/investment/) [Pay](https://sms4smile.com/quotes/about/pay/) [Technology](https://sms4smile.com/quotes/about/technology/) [Technology Stocks](https://sms4smile.com/quotes/about/technology-stocks-825710/) [Use](https://sms4smile.com/quotes/about/use/) ## Related quotes > [There is such an overvaluation of technology stocks that it is absurd. 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