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

To: Maurice Winn who wrote (21966)	8/2/2002 10:03:23 AM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Hi again, Maurice, <<I'm sure you don't really think that the hundreds of millions of people pricing markets are all mindless zombies in thrall to Uncle Al>> Yes I do think that there are hundreds of millions of mindless zombies, ready to commit physical suicide, spiritual suicide or financial suicide, justified by all manner of beliefs, values, and convictions. This explains to a certain extent why I was able to collect my pot of gold. I am not vain enough to think I actually deserve my pot of gold due entirely to my diligent work. <<I dare say you exclude yourself>> … I do not know for sure yet. <<how do you explain the ACF paradox then? Markets should be booming if it's true that massive money printing causes bubbles>> … I do not think ACF Mike said what you stated here. Let me first show what I understood ACF Mike said: Message 17822635 <<Think about this modest little conundrum. Our hero Uncle Al is still running the printing presses as fast as they will turn, with a vast increase in the US$ money supply since March, 2000. He's doing this because he magnanimously wishes to save his ungrateful subjects from the ravages of deflation whether they appreciate it or not. But here's the point. He's still printing. The Nasdaq is down 70%. How can that be if growth in the money supply causes financial asset inflation?>> My response? The money supply increases inflated the paper assets, and in turn, the US Dollar before 2000. You remember, the Virtuous Circle of Beneficence. Post March 2000, the fiat paper increases delayed the Nasdaq from its inevitable and ordained 90% collapse, even as enough of the Bubble Force was refocused on real estate. As a result, the Nasdaq meanders down 70%, on its way to off by 90%, instead of plunging straight down 90%. The weight of the Greenspud paper also held off, for the moment, a similar and fractal scaled fate for DJIA and SnP, but just for the moment, until the housing bubble’s bursting splashes back on the DJIA and SnP bubbles. Bottom line, speaking of the bottom, Greensputin has set the US well on its way to the bottom, ahead of Japan, because the Japanese have savings, factories, and customers, until they do not. Chugs, Jay