Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: AC Flyer who wrote (21930)	8/1/2002 8:18:33 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 74559

ACF, an interesting question is how come people like TraderMike, and the legions of others who blame it all on Uncle Al, have trouble understanding such a simple thing. The prices went up because they were bid up. It takes no money to increase market capitalisation. There don't need to be any shares trade hands for prices to rise and a bubble to exist. The bid and ask can simply go up each day with no shares changing hands. After a year of that, the market capitalisation would be huge and the Wealth Effect would make people think they are rich. When it crashes down again, people think 'money was lost' in some way. It wasn't. It was never there in the first place. Some wacko quoting really high prices and another wacko buying a few at that price doesn't mean everyone can sell at that price. How come otherwise intelligent people can't seem to understand that and they blame Uncle Al? I suppose they don't want to face their own ignorance and blaming somebody else is much more soothing. Uncle Al had no influence on the price I paid for Globalstar. It was all my own doing. If I had not bought, the sellers would have had to lower their price to find somebody a little less stupid than me. Uncle Al doesn't set the irrational exuberance component of stock market prices. He just sets the length of the measuring stick, which is used to measure the fundamentals, on top of which sits the wild and wacky bid/ask, which is controlled by the fevered imagination of millions of buyers and sellers. Mqurice