***LBP - Money, OT Warning*** DaveMG said: "This flight to safety trade only works as long as people have money to spend."
True, but the same amount of SuperD money is ALWAYS available to spend. No matter how much the Dow goes up or down, or how much people flee from USA stocks - selling billions of them, or selling up and moving themselves, their money and their stockholdings to Japan or Brazil, the exact same number of SuperD's remains rumbling around in pockets, tills and electronic/photon wave function systems. It certainly goes from one person to another, but somebody has each and every one.
Accountants are very pedantic as far as money goes and add billion dollar balance sheets to the last cent! And get both sides to match up! To the cent! Even though a million bucks might have been swindled out of the puter and petty cash took a beating last week.
What matters is whether people think the market should be higher or lower priced. No money goes missing, no money is gained. If all sellers suddenly decided Q.com suddenly IS worth $200 a pop, then that is what it is worth. But there is no more money around. There might not be many buyers at that price, so you can't all sell at that price. The same applies to the overall markets. The current slump is just everyone getting a dose of night terrors in the daytime. Or waking to the reality that returns aren't really that great - if that is the case, not saying it is.
Which brings me to SurferM's: "A little flamer sometimes just sneaks out from even kind hearted folks. Who knows why?" and his: "...evidence has poured in from everywhere reminding us what a fragile hold civilization has on chaos...". There are serious experts who point out the universe is not smooth - it is chaotic and fractal. Humans included. People take their perfectly good money to a casino, knowing that overall they lose and the house takes 2% on roulette. But bet they do. Taking the nice smooth, calm life they could have and creating out of thin air, and, paying for the privilege, some turbulence. It's about risk, hopes, fears, dreams, stupidity, power and the Washington Monument.
If you stay all calm and risk free, you can't be RICH!~ But, if you take some chances and create a bit or turbulence, hey presto, some of you hit the big time. The rest are human sacrifices, which they are presumably happy to be because they know half of them will be and they have no reason to think it won't be them.
So a flamer, a wild throw of the dice, a challenge to space with Globalstar, defiance of the laws of physics with cdma, a raid on the evil aliens holding the oil, emanating from the depths of the unknowable human emotions, surging away in our unconscious. Sometimes, we [if me is anything to go by] are surprised by what we did. "Where did that come from?" Seething in our psyche is a Big Dipper. Euphoria, Terror, both lurking and caught by contagion from other people, like a worldwide wave of grief for Diana, not because we really grieved for her, but sharing the emotions which flow like tsunamis through the billions of people watching each other. So now we have a tsunami of financial fear surging around the world.
A Flamer, appearing from nowhere and rolling and roiling away. As you say Mike, anyone holding their breath during the Cuban Missile Crisis or any of a heap of other crises isn't going to sweat much over the little celebration of globalization we are seeing now. It's all just a little dip as Americans realize they aren't living on a separate planet anymore and the aliens are living in the same village.
Now, credit is another matter altogether! It does puff up like a puffball and can deflate like a millionaire's round the world balloon, dumping people unceremoniously in the ocean. With stocks borrowed on credit, loaned from somebody who borrowed credit from some bank which didn't really have much in the way of prudential reserves in a currency about to be printed out of existence, there is serious risk of some panic selling and hill-heading. But money itself, the real McCoy SuperD, doesn't evaporate and will be there to go shopping when stuff is cheap. Anyone know what the worldwide ratio of SuperDs to total debt actually is?
Do I get a B for this effort SMike? An A? Or do I get a D and am gonna lose my shirt in a credit collapse?
Mqurice [holding on, knuckles not white yet, but stomach queasy.]
New Paradigm rulz ok! I don't think anyone said a bit of scaling and gutting isn't part of the New Paradigm.
PS: Lazarre, I agree the Ericy/Qcom moves will probably be just the old more buyers than sellers effect, sorry for joining the "why did it move a couple of dollars" brigade.
To The Prophet, pithy is uninformative. Slogans are pithy. Thanks DaveMG, rave away! It all made sense to me apart from the disappearing money idea. If anything, there will be more SuperDs sloshing around soon. Not many people want a deflationary collapse. |
