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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Oblomov who wrote (55264)1/8/2001 12:30:38 PM
From: pater tenebrarum  Read Replies (1) of 436258
 
i know...and i believe the main point about household net worth is how ephemeral it will prove to be. the debt incurred due to this perception of wealth will weigh heavily on the economy going forward.

as to the statistics regarding trading volume vs. GDP, it is important to note that there were only two periods in history during which it has expanded as much as it has now: the 1990's, and the 1920's. there is indeed something that can be considered 'normal', namely the historical relationship of stock trading volume vs. GDP in non-mania times.
i refer you to the depiction of this relationship over the past 80 years in this report. it clearly shows that when stock trading is so out of proportion with GDP that that's far from normal:

cross-currents.net
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