Will Trump’s New Financial-Engineering Loophole Make Stocks Rally and Bonds Crash?

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wolfstreet.com / by Wolf Richter / November 21, 2016 

Goldman and a rest of Wall Street are smelling a money.

The increase that US companies warranted overseas, and that have remained untaxed in a US, have ballooned to $2.6 trillion, according to Congress’s Joint Committee on Taxation, cited by Bloomberg. This “overseas cash” done it onto Trump’s agenda. Wall Street and a Corporate Titans are beating their chops. They can smell a taxation holiday or a new loophole to inspire them to “repatriate” this “overseas cash.”

Goldman Sachs now told a clients what these companies are going to use this “cash” for. You guessed it: financial engineering.

The accurate volume of this “cash overseas” stays a mystery. The numbers thrown around – including a $2.6 trillion above – are guesses. There is no central data. Companies are not compulsory to divulge a sum of their assets, in what currencies they’re denominated, or where they’re domiciled.

But in 2004, a final time there was a taxation holiday for “overseas cash,” a Corporate Titans “repatriated” $300 billion during a tax-holiday rate of 5.25% and used 92% of if for share-buybacks.

The series of jobs that were betrothed to be combined as a


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