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

To: Maurice Winn who wrote (21198)	7/13/2002 12:48:51 AM
From: smolejv@gmx.net	Read Replies (1) \| Respond to of 74559

>> People forget that money is just a debt and a debt is a promise to do something for somebody else and promises get broken<< That's bilateral, means it can be your favourite uncle as well, who'll break his promise (sorry, who's broken his promise). From my perspective (man, Im so old-fashioned) money is not "just a debt", it's a store of value, of what "I i.e. my past work are worth". >>...which is why there should NOT be a premium on shares instead of cash...<< man, I still have to work on this one. Tell me about risks, Q. You mean it's as risky to hold cash as it is to hold stock? You mean (gasp) your adoration of the AG ("Great Uncle is shafting you") is on the wane?

To: Maurice Winn who wrote (21198)	7/13/2002 11:02:47 AM
From: Stock Farmer	Read Replies (1) \| Respond to of 74559

Well now we agree on the premise: >>both money and shares are an IOU<< Clearly however, the electrons spark on different arcs between our neurons. You wrote: which is why there should NOT be a premium on shares instead of cash A share is a first IOU to pay you a second IOU. And a dollar is just this second IOU. Two promises stand in between me and getting what I am owed if I hold shares. One if I simply hold the cash. And the probability that the second promise collapses turns out to be some ginormously complicated weighted average of the probability of many of these first promises collapsing. Doesn't it stand to reason that as an important segment of US industry (e.g. Silicon Valley) jumped hundreds of metres in the air that the USD followed suit? Unfortunately, having passed the zenith of its arc, gravity is now doing its thing. And in the scrambling to get out from underneath and beyond the anticipated splatter zone... there lies the problem. Promises, promises...