On Fri, 6 Mar 2009 08:38:33 -0500, "Eisboch"
wrote:


"HK" wrote in message
om...

Vic Smith wrote:

What's going on is people are slow to realize that it's a new world.
You may have noticed Joe and Pat all flustered about the diving DJIA.
They still don't get it. The "magic money" of Wall Street is the root
of the problem we are in.
Those days are over. Over.
The 401k "losses" aren't real money. It was never real.
"Real" money is cash in hand that can purchase something. --Vic



It's interesting to me that you have come to about the same conclusions
regarding the stock market as I have, that in recent years especially the
"value" of stocks was not based upon any sort of reality, that it was
speculation built upon speculation. Book-cookers.


You guys are leaving out a very important factor called inflation. "Real
money" of 20 or 30 years ago doesn't buy you much today.

Healthy money policy has usually kept people with good savings habits
ahead of inflation with simple interest rates.
This whole "everybody gets rich" Wall Street phenomenon is a recent
development.

Growth is necessary for a healthy economic climate and growth in business
includes market capitalization and an increase in stock value. Companies
don't arbitrarily establish the value of their stock. The market
establishes it and the market is what people are willing to pay for it.

No, not "people" in general. The 401k market money is a captive. The
inflation of prices was institutional, and had nothing to do with real
value. It was the Wall Street players who pumped the prices so high.
The balloon has burst.

Without growth an economy stagnates.

I can't remember the name of that Secretary of Agriculture who got
hammered for saying "What's wrong with mediocrity?"
Hruska?
Anyway, I tend to agree with him that mediocrity isn't bad.
A lot of it is your philosophical view, but I've seen plenty of
instances where growth isn't the desirable path.
But growth is always the Chamber of Commerce view, for sure.
Reminds me of when my dad was running an auction hall on U.S.
41 near Ft Meyers, FL.
He's a fisherman like me, but loves money more than me.
We argued about the interstate coming down there.
He thought it would be good for business, and I thought it would
get the population up and mess with my fishing.
I was right.
BTW, he wasn't a good businessman and went out of business!
The clientele that flocked down there not only raised his operating
costs, but didn't much care for auctions either.
Frogwatch might have a few things to say about growth in Florida.

--Vic

--Vic