Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (42506)	11/9/2008 7:23:57 AM
From: THE ANT	Read Replies (2) \| Respond to of 217802

This loss of assets is all relevant.From what I see assets that lost 40% are now yielding 40% more.Stocks at 20 times P/E are going for 10 times P/E.Houses renting at 0.5% a month are renting at 1.0% a month,Brazil banks at 10 times P/E are at 5 times P/E.Where the pain is assets relative to labour.People with assets have much less of a claim on others future labour.In other words it will be hard to retire as they can buy less labour in the future than they thought they could.I again repeat :If I am a employed 18 year old with no assets going out into the real world I am much better off today than 2 years ago.The people with assets will have to give me more assets for my labour than before.These assets should never have gone up like they did and are going back to fair value.The only sad part is the distorted price of assets caused poor allocation of resources (goods were permantly lost)and hurt many individuals along the way.The US govt is trying to rebuild Humpty Dumpty.It can not be done once the truth is out.When the Soviet lie was exposed the outcome was inevitable,our situation is no different