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

To: TobagoJack who wrote (45557)	1/21/2009 11:48:48 AM
From: Maurice Winn	1 Recommendation Read Replies (3) \| Respond to of 217807

Yes, TJ, those numbers are near enough for government work. But coffee would be about $8 with Dow 16,000, not $16. That's because Happy Meals are more important than coffee, and coffee growers and milk producers will get a pay cut decease while holding wealth as assets producing profits and Happy Meal dividends will be relatively more valuable than holding US$ for the interest payments which are current at very UnHappy Meal levels. Westpac bank told me they would not even give m cup of coffee to move my US$ to them. ASB wants 1% of the money to give it to me in cash. Gold owners want 10% of it just to handle a transaction. Nobody wants the stuff, though NZers do and I can now get nearly twice as many NZ$ for each US$ and that price has dropped by 40% in a year or two. NZers are starting to get nervous and some have noticed leveraging problems, debtly disaster overseas, not to mention their own cash flow issues. There is now a vicious rumour extant in NZ that contrary to the ideas of two years ago, or even a year ago, house prices do NOT always go up. One cannot always afford a double chai soy latte. At 0% interest rate, something, anything, is a better buy than sitting there as a sitting duck being plucked day by day. Dow 16,000 is a relative bargain - much better than a coffee, even if chai soy latte fancy nonsense name. There could be a shocking sudden run in the Dow as people flee the US$ which is a good idea with Ben Bernanke thrashing anyone who lingers with a big stick. I have watched police in Bombay moving vagrants out of Victoria Station with sticks. Ben's approach to those holding US$ is similar. He is giving them a good thrashing. It's even possible that coffee at Starbucks could get cheaper even as the Dow rises to 16,000. A couple of years ago I thought Starbucks was going to suffer greatly when people realized their houses were not making them effortlessly rich and that they should not have a daily perk of percolated Vente coffee,but should use that money to buy a loaf of bread or two kilograms of rice. Companies which are still making hefty profits and paying dividends are likely to survive. Mqurice