What happened to this board as it is very quiet
It is quiet. We went down from 150 posts a day down to 30 and out of those 30, 15 posts are yours -g-
I am very bearish on long term prospects for the US economy and the dollar, due to bad fiscal and monetary policies, however i am bullish on inflation.
I see people making tons of money in certain professions, massive wealth being created in Asia, flood of money on Wall street.
On the other hand the lower classes are struggling to make it, it is debt slavery and standard of living for the middle class has dropped sharply.
However, stock market performance has very little to do with economic pain of the masses or declining standard of living or consumers up to their eyeballs in debt.
In a chronic inflation environment, stock market goes up despite bad fundamentals, because the measuring unit is declining in value. To those people that underestimate inflation, it has a look of the market being detached from fundamentals.
If we measured stock prices in wooden sticks of a certain length , and a share of Wal Mart is priced at 50 sticks. What happens if all the sticks in the world are cut in half ? Now, Wal Mart is worth 100 sticks. So the stock goes up from 50 sticks to 100 sticks in price, but the sticks are worth 50% less, because they are shorter and there is twice as much of them around.
And everybody would wonder, where are all this sticks coming from, the world is awash in a glut of sticks ? -g-
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