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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (15848)	1/11/2004 5:20:56 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 306849

It's a simple magic trick to fool the naive. We have a "high rate of earnings growth" only when it's measured by a depreciating yardstick, a rapidly declining dollar. We actually have a huge decline in earnings. Milton Friedman is applauding the process like a wind-up monkey slapping his cymbals together. This is exactly the "solution" he proposed to the economic depression of the 1930's. He actually lived long enough to see it implemented. The one "advantage" of this process is that it may be able to protect the banking system from collapse. But this is only theory. Time will tell how it really turns out.

To: GraceZ who wrote (15848)	1/11/2004 5:43:54 PM
From: orkrious	Read Replies (1) \| Respond to of 306849

This would be the first depression which exhibited such high rates of earnings growth. lol, you mean the proforma, super-duper, managed earnings? all those big gains with no top line growth. like big earnings from FNM where their shareholders equity declines during the year. just wait until every company has sales declining while their raw materials and energy costs are increasing. I'll bet FASB comes out with pronouncement 15,000 which allows capitalization of energy and other non-recurring costs to help the earnings pic. <g>