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

To: Don Lloyd who wrote (21899)	8/1/2002 12:10:22 AM
From: Maurice Winn	Read Replies (3) \| Respond to of 74559

Don, you aren't joining the legions blaming Uncle Al for maniacs at an auction bidding the price of the stock market to the sky are you? The bidders can bid the market up by $100 trillion with NO extra money being printed. They just need to trade a few shares back and forth with ever escalating prices. As the price rises, they trade fewer and fewer, but the whole market is repriced in everyone's head as though they are that much richer. It's so funny to see Uncle Al being blamed. It shows how clueless people are about what goes on. Here's another example from the long, foaming, rant about the evils of it all and the end of the USA, which Jay posted <And what was the cause of all that rise in net worth all these years? Stock market gains (and house price gains I assume). And what was the fuel for all that rise in the inflation in stock market and house prices? Credit-creation by the Federal Reserve. It's the only place where money can appear out of thin air. > That's right, it was all Uncle Al. Those bidding had no control. They were mindless zombies controlled by the Federal Reserve employees. Each day, they had to bid more and more and more. They had no control over their mouse. Their minds were numbed by Uncle Al. There's more foundation to the idea that house prices are a function of credit created by Uncle Al, but even there, the cash buyers can bid prices up and lowered interest rates makes people think they can afford the house they want much easier, even if they borrow exactly the same amount as previously. Most mortgages were refinancings, with a bit of extra money thrown in for fun spending, so there obviously was some extra credit built in there - in the interests of keeping the economy going of course and avoiding the implosion resulting from the stock market crunch. Yes, there was plenty of credit created and it got soaked into the stock market too, now being destroyed by Worldcom, Globalstar, Global Crossing and hordes of others. But the wild and crazy bidders like me were sufficient to raise prices, even without the turbo boost of Uncle Al's credit. Blaming others is setting oneself up for another big mistake! Mqurice

To: Don Lloyd who wrote (21899)	8/1/2002 4:26:36 AM
From: Snowshoe	Read Replies (4) \| Respond to of 74559

With the same wonderful results? Don, I'm halfway serious. There are strong economic, environmental, and national security reasons for reducing the consumption of energy. I wish the various conflicting interests would agree to a common framework for dealing with this. On this thread we are quite interested in the U.S. trade imbalance and it's effect on dollar stability. Jay is actively scheming at ways to get rich in a usd meltdown, but it would be nice to avoid all that fuss and bother by reducing our imports. Right now all those SUVs guzzling gas in traffic jams are contributing to our balance of payments problem.