HI Grace, << Grace’s recommendation, if made explicit, is to shop and buy the small/mid caps still valued at say at 20 P/E. This is an idea, but may not be a good one.>>
If I mis-stated your implicit recommendation, I am sorry.
<<It's not fixed, there is not a given amount nor is there a fixed value that can be placed on it even. Even while it is flowing from one place to another, evaporating....it's raining somewhere else.>> …
Yes, of course the amount of money and the size of the pool is not a constant. That is why the pool sometimes really does shrink to a puddle, with the creatures flopping around or lying still on the baked dirt. It may be raining somewhere else, but acid rain is no more helpful than evaporating orange juice.
<<The only job that a corporation has is to make profit.>> …
and we have no disagreements.
<<Value and stored value (money) are created by human endeavor. It's seductive to get wrapped up in watching the money shuffle game. Usually the money shuffle is what happens when a government or governments has made it less then rewarding to work for a living by creating high taxes.>> …
We have no disagreements here. The totality of all governments’ policies, and private responses to these policies act to move the center of gravity of the pool of funding. The US, Japan and Europe working out mutually acceptable exchange rates, and domestically acceptable fiscal policy intentionally and/or inadvertently work to shift the center of gravity of capital.
<<Keep watching because you are about to see the biggest write off of private debt in the history of debt. Bagholders already have their places as the equity holders before them left holding dot bombs. The great thing is that it is all secured by assets that have a shelf life close to that of a beach ball so we aren't going to have to live through another resolution trust thing where asset prices are held down for years while they try to liquidate>>
To believe that bond holders can be cheated without consequence is perhaps not what you are suggesting. If it is, we should indeed keep watching to see if you are right with your New New Economics :0)
Chugs, Jay |
