We live in a golden era of stock buybacks. Standard & Poor's says that S&P 500 companies bought back $110 billion in stock during the third quarter, up 35 percent from a year ago. That was just under the record $117 billion announced in the second quarter. Information technology companies are leading the way. There was a time when people debated the value of buybacks vs. productive investment. Truth be told, the debate is now moot. Shareholder concerns trump economic concerns. No one, I mean no one, is calling for that money to be put into the physical plant. They've basically become a form of dividends. Shareholders expect the added return that buybacks afford. It can be shown that buybacks have had a salutary effect on earnings.

For more:
- Here's an AP update
- Remember the second quarter buyback frenzy?