To: mozek who wrote (13201 ) 8/2/1998 12:31:00 AM From: Maurice Winn Respond to of 152472
***Money Go Round with cloned words*** I hope I'm not misunderstanding you, but you seem to me to be saying that if you sell stock and simply stick the money in the bank, then the cash is not readily available for continued conversion. Or if you use it to buy a car or house it is not readily available for continued conversion of stock to cash. Don't worry about it being outside your area of expertise, it's outside mine too, but as MikeD says, nobody has got it totally pinned down and econometrics [if that's the word] has an accuracy similar to weather forecasting. And I think for a similar reason. Both are major systems, with fractality [if that's a word] and chaos theory implications. They tend to be unstable rather than stable. Though there are broad stabilizing influences which tend to predominate at any one time, such as summer is warm because there is lots of sun. But there can be snow blizzards in May in Ottawa. I say fractality because like Renby's example, the same thing writ large is very like the big picture. And chaotic in that apparently minor effects can trigger big ones = the old butterfly in the forest analogy. Anyway, the point I wanted to make is that money is often treated as though it stops after a transaction such as converting stock to cash. But like an engineer's conservation of momentum or continuity of flow in hydraulic systems, in which the momentum doesn't just stop anywhere, it just swaps location, or more easily understood in a hydraulic system, the fluid doesn't go away, it is just in a different location. When you sell your stock, the money is quickly in your account, anywhere on earth. This is my point on the speed of money flow, with it getting faster and faster and faster so less of it can do the same job as lots used to do. The bank is immediately able to lend it all out again as cloned money, other than the 5% prudential reserve they are obliged to keep. Which they do because they make no money with it sitting there. It is loaned the very same day! To Renby who buys 7000 GSTRF on margin. So you see, all cash is always available to anyone who has a credit rating to convert it back into stock. And as more SuperDs are produced, they can be cloned and cloned and cloned [with 5% retained for prudential reserve and only 50% margin being allowed] and so on and on. No wonder there is a lot of it about with it moving at 90mph and accelerating at 9.8 m/s2 [using the SuperD velocity graviton acceleration system = electronics, photonics, magnetics compliments of cdma2000 from Q.com] Hoping I didn't miss your point! While everyone says nobody can understand it, I reckon I have it cold now [well, cold enough that it's good enough = same as I can't phase a photon in cdma2000 but am confident it will work], so am fully invested based on these principles. Happy to play chicken with Alan Green$pan and his SuperDs. Hoping somebody can find fault with my investment strategy! Mqurice PS: 'The coal face' is just idiom meaning back to digging coal for a living, though it really means going to work, selling services on an hourly rate. Meanwhile, Madeleine Albright, which I'm reliably informed is the correct speling, called in and had a pleasant visit yesterday. Nobody was shot, nobody got shouted at. In fact there were a few laughs - she pointing out that the USA is the sole remaining rugby superpower having won the last Olympic Gold in the sport in the early 20th century. Also, she said Xena is one of her role models. Of course that raised a laugh, but I'm sure she meant in mental strength rather than physical strength and beauty. I'm sure she was aware of the tempting physical comparison so I give her credit for some self-deprecating humor too. Apparently the Secret Service agents left their artillery at the airport to comply with NZ law. I bet it feels nice to be able to go somewhere without bullet proof stuff all round and security men armed to the teeth. We were pleased to see her. Yes, there were some Greenpeace antinuke demonstrators, dressed up in boiler suit colored costumes with signs. Of course all civilized and well behaved. Fortunately there were no French terrorists around.