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

To: Michael Bidder who wrote (25175)	1/23/2005 10:35:31 AM
From: Tommaso	Respond to of 110194

If you are ignorant, that makes two of us. Add in Warren Buffet. That makes three.

To: Michael Bidder who wrote (25175)	1/23/2005 11:22:52 AM
From: Douglas M. Benedict	Read Replies (1) \| Respond to of 110194

Very good question... I like to think of it as playing MONOPOLY...except instead of the price of Boardwalk and Park Place being fixed...they change over time... Everytime you pass GO...you get a $200 infusion (or was that $2 trillion...) but let's keep the game going...the world is the monopoly board, the properties are limited assets (ie. gold/silver/rentable real estate) and the money supply???...well it just keeps growing... So all the players keep at this game, collecting sums of cash as they pass GO or hit Community Chest/Chance (thereby adding to the game's Money Supply)or are lucky enough to hit the FREE PARKING (we always added a bonus from the bank here, sort of like Government largesse to buy votes)... At the end of the game, we tally up who is the winner (easy 'cause everyone was broke but 1)...it usually is someone who owns the LIMITED properties...as cash will gravitate to rents, etc...(Funny thing is we each started with $1500 but someone was filthy rich in the end...where did it come from and why was the board still the same board when we put it away?...maybe we should play chess next time) Pretty basic, explains most economic theory, got to hand it to Milton Bradley, except one thing, it failed to allow the property prices to increase geometrically...basically it was a government's dream world where you just kept getting handouts without the appropriate PRICING consequences (note the end result was the same, it just takes longer to get there)...Any player who was foolish enough to turn over Boardwalk and Park Place (or any other mini-monopoly) for Cash at Cost was likely to be a loser in the end... So, substitute your favorite items in this game environment and you will likely find the solution... We all seek the answer...it is out there somewhere ;)

To: Michael Bidder who wrote (25175)	1/23/2005 1:18:13 PM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

<Are we in effect massively increasing global money supply? This will keep Price of Gold up relative to world currencies. Another way to state it; there are more units of paper chasing a relatively limited number of gold ounces> You would think that would be the case over time. But then you look at the ever increasing supply of homes and yet values have skyrocketed in many areas. Finite supply of gold yet the shares of the small cap miners are back to levels of 3-4 years ago. Perhaps small cap miners with proven reserves in the ground is the most interesting area to be invested in today.