Stockman Scott's Political Debate Porch Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Stockman Scott's Political Debate Porch

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: SOROS who wrote (10249)	12/11/2002 12:46:25 AM
From: Sig	Read Replies (1) of 89467

SOROS: <<On these two points below, is there a source that shows comparisons on these two measurements at various critical points in history? If so, can you provide a link? Thanks.>> Not me. >>> "United Airlines isn’t the only company that is need of spare billions. A report in the latest Elliott Wave Financial Forecast quotes an ominous statistic: liabilities for the 30 Dow Stocks are $3.3 trillion. The net worth of the 30 Dow stocks is only $728 billion of which $218 billion is goodwill. Tangible net worth is only $510 billion, meaning that the Dow 30 stocks have $6.5 dollars of debt for every $1 dollar in equity." "Since the beginning of 1998 the US under the Greenspan Fed has produced $9.1 trillion of credit market debt. And what has all that debt generated? It's generated Gross Domestic Product of about $2 trillion. In other words, it's taking about $4.5 trillion in bank credit to produce $1 trillion in GDP. Economically, we're running up the down escalator.">>>> If the average cost of the loans to company were 6% a year, they would (only ?) owe $198 bil/year in interest plus some minimum on the debt. That money owed on the loans is paid before gross profits are computed, after which taxes up to 50% are extracted to detemine net earnings. And all the employees paid by the company owe taxes to the government. The sum that the government gets back is considerable. Therefore if the 30 companies are reporting net earnings and not losses the system is working, the money is flowing, the loans are being paid. Perhaps if you could add the total earnings of the 30 companies and it would give a clue as to whether the system is sustainable, but if is not, what is the alternative solution that will keep perhaps millions employed until earnings can improve. ? IMO somewhere in the future will be serious inflation, perhaps loan writoffs as is common in S America. And the little guy always pays. Sig Here are the Dow 30 .I may have time to look at earnings money.cnn.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next