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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (52329)	5/27/2000 9:34:00 AM
From: Les H	Read Replies (3) \| Respond to of 99985

Stock Option Nightmare fortune.com Luxury Car Shortage in Silicon Valley fortune.com

To: pater tenebrarum who wrote (52329)	5/27/2000 10:44:00 AM
From: TheKelster	Read Replies (1) \| Respond to of 99985

What the Aussie article left out of the picture is a third, free handed, method of "money" creation. The stock market. As a phoney money creating institution the stock market is not under direct control of the fed's nor the fractional reserve system. By allowing Corporations to create their own money, in the form of stock, we have a second fractional printing machine. I do not label this a fractional reserve, because no reserves need be kept. It requires only some up front money to kick off the machinery. This small amount is then multiplied freely. In the most recent years it is multiplied beyond reason. Stock is first printed by the corporations and then multiplied again by the margin lenders. Hence, "the bubble". Real estate buyers, in the land of the 1/2 million dollar square foot, are buying land with phoney money, created out of thin air by the fraction printers of the market. Of course all consumption must eventually be paid for by someone. Joe average picks up the tab. When the government over-inflates the dreams of the people with promises of a hardship free life, and makes a commitment to pay the tab for them, the taxpayer pays the tab. The taxpayer actually pays twice. Once to support the large machine that "manages" the system (the biggest welfare operation in existence) and once to receive their promised goods. When the fractional reserve system goes haywire, due to gambling debts run up by the managers(can you say S&L), the taxpayer picks up the tab. When the Market forgets to use restraint. Instead of carefully collecting it's golden eggs it allows the system to blow off and thereby kills the goose that lays the golden eggs. Then the party will be over and once again Joe Average will pay the tab, this time with his retirement money. Oh yeah, what is my market forecast?? I do not believe that Joe average is done picking up the tab, not nearly enough crying and wailing. No blood in the streets. Some have turned white from lack of blood in their faces, but, there are still too many on life support. There are lots of worried folks wandering around in the waiting room but we've only actually lost a few of the sicker patients and a few of the more reckless patients. If this is going to qualify as a real market crash we need a lot more pain. Tuesday is looking good though. :-D