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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (2846)	12/3/2003 9:54:25 PM
From: I_C_Deadpeople	Read Replies (1) \| Respond to of 110194

This was emailed to Richard Russell and posted on his remarks tonight. Since it is an email from a subscriber I think it is OK to copy it: "A democracy cannot exist as a permanent form of government. It can only exist until the voters discover they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising them the most benefits from the public treasury, with the result that a democracy always collapses over a loss of fiscal responsibility, always followed by a dictatorship. The average of the world's great civilizations before they decline has been 200 years. These nations have progressed in this sequence: From bondage to spiritual faith; from spiritual faith to great courage; from courage to liberty; from liberty to abundance; from abundance to selfishness; from selfishness to complacency; from complacency to apathy; from apathy to dependency; from dependency back again to bondage." Written by Alexander Fraser Tytler in "The Decline and Fall of the Athenian Republic" 1776.

To: russwinter who wrote (2846)	12/3/2003 11:45:04 PM
From: Canuck Dave	Respond to of 110194

Boy, that a wonderful essay. He sums it up quite neatly in those 20 odd paragraphs. Where we've been, where it is (was), where its going. CD

To: russwinter who wrote (2846)	12/5/2003 10:45:42 AM
From: Mark Adams	Read Replies (1) \| Respond to of 110194

Was listening to the Don Coxe interview last week, I think it was, when he mentioned in his discussions with euro investment interests, they saw the metals and mining sector as 'too small' to absorb the level of money they wished to deploy. I paraphrase from memory, of course. That led to a segue on Financials, which as you know dominate market cap weightings today. Which reminded me of a good piece done by ContraryInvestor done back in, oh say 01, that showed the Ute sector market cap in relation to tech, effectively demonstrating that the market cap of tech couldn't migrate into Ute's without blowing valuations all to heck. These items support the idea that capital is available, but in hands which find themselves unable to deploy it optimally. Big picture: means a smaller pie in total for all. If correct, systemic faults result in capital being wasted. Due to a lack of effective path between 401k type flows and the investment vision which can generate nonphantom returns. Capital exists. The problem is figuring out how to deploy it correctly.