Silicon Investor (SI) -- The First Internet Community

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 : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (28865)	9/16/1999 10:20:00 AM
From: MeDroogies	Respond to of 50167

Oh, there is no question about that....it's the biggest laugher on the books. Of course, their ability to measure GDP and "general welfare" is a joke, too. A classic is the current Bill Bradley theme of "stagnant wages". Wages are, indeed, stagnant at a median level. However, investment income is at all time highs, and benefits have increased "income" by 50% while allowing businesses to reward workers without costing the company dramatically - that's win/win. Further, the gov't can't account for improvements such as the computer, which have increased information, allowing consumers to manage their money, spend more wisely, accrue capital more efficiently, etc. Or the cellphone, which allows better information flows at a relatively reduced opportunity cost to a hardline phone. This is all the biggest joke. I, for one, believe some aspects of the "New Paradigm" in this respect: since the gov't hasn't (and can't) account for all these things....the market has, visible in the increased PE ratios. Still, we must remain mindful that "new paradigms" come and go, and everything returns to a level of stability. Will it be the old PE ratios of 8 - 12? Doubtful. Will it be 18 - 24? More likely. But current market ratios are out of whack...without question....and require careful asset price management.