"Jere Lull" wrote in message
news:2008092716442316807-jerelull@maccom...
On 2008-09-27 11:10:04 -0400, Larry said:

It's all a sham, just like 9/11. Trillions have simply vanished into
thin air. But you know that's not true. Trillions have simply CHANGED
HANDS

Trillions never existed, were only numbers on a spreadsheet created out of
pretty much thin air.

The market goes up, the market goes down. The value of my portfolios go
up, they go down. I gain/lose nothing until I sell.

I can not count the number of times I counseled nervous friends in a down
market that the market will probably rebound; if they cash out, they
lock-in the paper losses. My ex ignored me as her 10k investment dropped
to 7.5k. She locked in that loss. Had she sat on her hands, she could have
realized a 10k gain just a year later.

Should the entire economy tank and we go into a depression, my investments
and house will have the same value relative to the price of bread, about
the only true measure.

I'm currently deciding where to invest my severance. It won't be under the
mattress.


Well, that might not be true... if you have money in stocks, say a mutual
fund, and we have a depression where the companies go out of business, the
stock will become worthless. While it's true that your house will always
retain some value, this also depends on who actually owns the house. If it's
free and clear, then you only have to pay taxes and utilities. If the bank
owns the house, you become unemployed because the company went out of
business or cuts way back, etc., then you'll have trouble making your
mortgage payment. If enough of the big banks fail, e.g., WaMu (currently)
and BofA, then you won't have access to money.

During the Depression, my father and grandfather owned their own business.
Even though there wasn't any work, they still went to the building in
Manhattan owned it outright), which was a ferry ride away. I don't recall
how much they paid for the ferry crossing, but I do remember my father
telling me that if they didn't bring something to eat, then they each
brought a nickel to buy something, typically cow-kidney sandwiches with a
little mustard.

At one point, a customer wanted something made, but the material was on the
other side of town. So, my father hiked across town, picked up the steel,
put it on his back, and hiked back, which took him most of the day. They
worked all night to get the work done, and ate the remaining sandwich,
splitting it for dinner. He told me that they make about $20, which was a
fortune at the time.

--
"j" ganz @@
www.sailnow.com