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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: Ilaine who wrote (14113)1/28/2002 11:39:42 AM
From: TobagoJack  Read Replies (1) | Respond to of 74559
 
Hi CB, <<I don't have the skill set to test that hypothesis, but I am trying to learn how>>

The issue for investors at the here in the now is of course 'ought we be at the epicenter of the real world testing of Greenspud's theories when such market testing takes place'?

Your answer and mine are the same, regardless of our assupmtions and analysis, 'cash'.

<<"oooo, oooo, it's a Big Number">> A big number is debt, ever bigger number is money in circulation, all seemingly to be growing faster, and have grown faster, for some time, than the rate of economic growth, never mind aggregate profit and profit growth required to pay down principle plus interest.

FED is trying to keep the debt serviceable. They may succeed, for a while, if the debt level does not continue to expand faster than GDP, for a long time.

The thought that money in circulation is somehow a centrally planned experimental vehicle guided with the imprecise steering stick of interest rate by Professor Greenputin is disconcerting, but then, as someone often say, it just is, and so we place our bets, the same way.

Chugs, Jay



To: Ilaine who wrote (14113)1/29/2002 6:29:15 AM
From: smolejv@gmx.net  Respond to of 74559
 
>>big chunks of semi-illiquid money that is just sitting there.<< wrong on two counts
a) it's not just sitting there, it's been growing & growing
b) it's not just sitting there, it's feeding (among others) Faennie Maes und Freddy Macs of this world.

Fed can watch the front door, for what they care. The money is made elsewhere (in the original and several other senses).

dj



To: Ilaine who wrote (14113)1/29/2002 7:16:15 AM
From: smolejv@gmx.net  Respond to of 74559
 
>>My guess is that if you overlay that with the total market cap of the stock market you'd have an inverse ratio over the past five or so years<<

Seems to compute OK, CB:

finance.yahoo.com^RUA&d=c&k=c1&a=v&p=s&t=my&l=on&z=m&q=l

dj