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

To: GraceZ who wrote (17085)	3/20/2002 3:27:49 PM
From: LLCF	Read Replies (1) \| Respond to of 74559

<I've looked at family balance sheets for years and years, over a wide range of economic brackets. While I can easily say some balance sheets took a hit in the last three years with the decline in stock values, over ten years there is a great deal of growth. > Just curious... what are you watching, aggregate numbers or actually median, or somehow average people... ie. stats unaffected by massive increase at the high end??? DAK

To: GraceZ who wrote (17085)	3/20/2002 5:35:38 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

< In Feudal times, the serfs would slowly build up debt to their Lords. This debt would build up to the point where there was no possibility of it ever being paid off and it was almost impossible to service. Whenever there was a change in power, where a Lord was replaced, everyone's debt would be forgiven, back to zero. That would start the slow process of debt build up again.> Heck Grace, that would have the Lord looking over his shoulder! A judicious blow with a sword would be very tempting. Or a bit of poison in the chalice. No wonder there were battlements, knights and lots of conflict. When interest rates and P:E ratios revert to their mean, I suppose we can expect to have knights, swords and reduced life expectancy again. Mq

To: GraceZ who wrote (17085)	3/21/2002 4:25:30 PM
From: smolejv@gmx.net	Respond to of 74559

>>1990s most people feel poorer right now because they aren't looking at the longer trend. << It's all in their minds (sigh). Plus, 'looking at the longer trend' (Im a baby boomer too), well, how far do you need to see int the rear-view mirror to be (feel) sure you're not driving into a concrete wall of your retirement... >>If interest rates had stayed high, these people would be screaming now, but they have been bailed out by the FED.<< My reading is that if anything FED succeeded (yes, it's a- ahem - some sort of a success) to keep the consumer confidence (and their part in GDP) at refreshingly unscathed levels. >>Our FED lowering rates by decree is the modern equivalent of this Feudal debt forgiveness.<< I guess Austrians would have a more "20th-century-like" (to quote CB) name for it. It's spreading the risk down the pyramid for me. Just musing and - btw - agreeing. dj