I had discussed this a while ago on this list. During the discussion, I found out 
much to my astonishment that the disagreement was rooted in the other side's 
belief that stock buybacks were only a replacement for the unpaid dividends 
(those are indeed less important these days).

I have just read in a link from pudentbear.com 
(http://www.startribune.com/stOnLine/cgi-bin/article?thisSlug=BNKS07&date=07-
Aug-2000): 
"America's non-financial firms issued $535 billion of debt last year, mostly to buy 
other firms or their own equity: In net terms, U.S. firms bought back shares for the 
sixth year in a row." [despite the high number of IPOs and some huge secondary 
offerings -my comment] 
It seems to come from The Economist. Of course this is not what I'd call a trusted 
source.


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