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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (21952)8/2/2002 5:26:50 AM
From: elmatador   of 74559
 
There are two economies: The economy where central banks live. The economy as O'Neil and AG live. This is the economy where capital reigns.

Then there is the real economy where people live. They don't deal with capital. They deal with money. A Brazilian who had woken up yesterday when the Brazilian Real was at 3.47 has not been affected by it. Today he'll wake up and the dollar is at 3.15 Real had gained 9.84% in one day, and he still goes on in his daily routine.

The capital economy is important only to people who lives off capital. People who live off money, do not profit from capital neither incur in loses related to capital. Count how much % of the world's economy is called informal or shadow economy. All that % of the world's economy is not tied to the formal capital economy.
The rich man should envy the poor man, for the poor man doesn't have to worry about capital.
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