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

To: Fiscally Conservative who wrote (49838)	1/16/2006 10:09:27 AM
From: GraceZ	Read Replies (2) \| Respond to of 110194

If an average investor truly believed that most publicly traded companies fail over time I would bet there would be a lot less investors betting on the equity market. I stand by my statement that it is the first thing they should be taught. It was the very first thing I was taught when many years ago, knowing nothing about the market, I took a basic investing class. The teacher projected a copy of the WSJ from just ten years earlier and then asked us if we recognised or remembered all the companies on there. Most had been folded into some other entity or were gone completely. I never forgot that lesson. BTW nobody in the class decided not to invest in the market from that lesson. I doubt anyone would give a hoot about lost intrinsic value being replaced for the common good of mankind or society as a whole As they should be, they are far more interested in improving their own lot and in seeking their own self interest they serve the interest at large. This is one of the reasons why capitalism works so much better than collectivism. These sweeteners usually entitled the debt holders to a portion of the uncirculated shares that in the end get dumped on the market further diluting the common. There is a decided difference between being an owner than being one who lends money. Owners get paid last and this is as it should be. The person who lends money doesn't share in the reward for success except up to the terms of the loan. Maybe some out there lend with an eye to receive equity in place of repayment but most expect return of their money. Is that what you are calling stocks now,lottery tickets? No, but it is how I would characterize the attitude of people who were throwing money down on stocks back in 1999. The record of their gambling behavior is pretty well documented right here on this site. Those individuals who maintained conservative balanced investments in the market throughout the 90s to present day didn't lose it all, in fact they are ahead over a 10 year period. The system is rigged to attract as many players as possible. Wall street pulls out all the tricks. CNBC and co. and Kramer;“Buoooyah!” Even our government gets into the act;401K’, Roth’s,529’s…ect. You name it,they were all created to get everyone into the game. Oh please, people were shouting that they weren't allowed to participate in IPOs, venture capital funds and every other kind of risky investment. Regular Joe's got what they demanded, the same right to speculate that rich people had. They got what they demanded. You are talking about the FED or am I confused? Free market rates domestically speaking, are partly a reaction to US fiscal policy and the FED not the other way around,imo. You are confused.