max
09-29-2008, 12:53 PM
The economic misinformation put out by media would be amusing if not so dangerous.
They are squealing about the DOW "losing value." But how can value that was only there in the form of a bubble be lost. It never existed!
Value is intrinsic, and in the case of stocks it is determined by price-equity ratio. The rest is just speculation causing a temorary bubble that must in due time deflate...... The DOW was like the Emperor with no clothes. The market is stripping it naked for all to see. It's not the "no" vote on the bailout eroding value. The value simply doesnt exist!....The value is the value...deal with it.
Same with the housing bubble. How can anyone believe that a cape cod can be worth $400,000 $500,000 dollars? It has to come down. At best, government intervention can keep the bubbles afloat another year or so...but then the next crash would be even worse because the bubble got even bigger and the dollar was eroded.
The longer we postpone taking our lumps...the worse it will be. ITS THE BUBBLES STUPID! ... caused bt Fed issued debt paper currency and out of control government spending. Now the same gangsters that created this mess are out to "bail us out." Who in their right mind would trust them???
They are squealing about the DOW "losing value." But how can value that was only there in the form of a bubble be lost. It never existed!
Value is intrinsic, and in the case of stocks it is determined by price-equity ratio. The rest is just speculation causing a temorary bubble that must in due time deflate...... The DOW was like the Emperor with no clothes. The market is stripping it naked for all to see. It's not the "no" vote on the bailout eroding value. The value simply doesnt exist!....The value is the value...deal with it.
Same with the housing bubble. How can anyone believe that a cape cod can be worth $400,000 $500,000 dollars? It has to come down. At best, government intervention can keep the bubbles afloat another year or so...but then the next crash would be even worse because the bubble got even bigger and the dollar was eroded.
The longer we postpone taking our lumps...the worse it will be. ITS THE BUBBLES STUPID! ... caused bt Fed issued debt paper currency and out of control government spending. Now the same gangsters that created this mess are out to "bail us out." Who in their right mind would trust them???