SI
SI
discoversearch

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.
Strategies & Market Trends : Waiting for the big Kahuna
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: William H Huebl who wrote (7937)10/27/1997 8:22:00 PM
From: Defrocked  Read Replies (1) of 94695
 
Note on Asset Devaluation
subtitled blatherings of one market observer

For every liability there is an asset but the opposite
is not true. That is, while all liabilities are also
someone else's assets, all assets are not debts.
Some assets are real assets such as
equity, capital goods, land and gold. Assets supported
by liabilities are referred to as financial assets.

The current fear roiling the market is centered
on "asset devaluation" not "earnings evaluation" or
"earnings disappointments". The market refocused its
attention on the former very quickly during the last
month and many investors missed the moved. It was/is
fierce and may run for several days or weeks.

This perception,real or imagined, that rapid decreases
in the ability to pay off debt will decrease financial
assets and potentially real asset values is undeniably
underway in many global markets. Note the sell off in
global equities, gold and the potential for the same
for HK property and even U.S. housing values.

The emerging trading situation is clearly serious. I believe
however that it will work itself out if the Federal Reserve
does nothing . They must provide assurances to the
market but not disastrous rates hikes or inflationary
additions of reserves. Hopefully, AG understands and
maybe even anticipated the problem. Please save us from
active monetarism here.

Just my 2 cents.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News