Doc, i find it interesting to always look down here and see you so passionate about the market lately. Being a finance major first, it is my true passion. My problem was that I could never find clairvoyance to manage my own affairs. MARKET VALUE is indeed "market value" - which is only what people perceive in the end. Financial systems, tools, etc.., are interesting things indeed. Don't even look into Call options - YOU HAVE BEEN WARNED.... LOL
The economy is fragile indeed... I was just mentioning in a thread the other day how, economics indeed supersedes so many other academic functions as master.
1. Its amazing how abstract Notions gain real value in life. Take the tech stock bubble of the nineties. Companies having less than zero book value, yet having record high net worth in stock value. Some of them having proven function in the real world, most of them untested. But in the end, their exceedingly high values being based on what people PERCEIVE they are worth. As far as profit making and taking concerned - its like a snowball coming down a hill, except with a steering wheel. The funniest part being that the wealthier you are, the more you profit by a move either way. THE SUM OF THE MASS CONTROLS THE SUM OF THE VALUE RESULTING. Major players make MOVES, and We (the 99.8%) of the population with no net worth, are nothing more than self diluted grandiose victims called MARKET SUPPORT. ALL TRICKLING DOWN. The only problem with TRICKLE DOWN ECONOMICS is that it speaks too much to the truth of the matter, and it a give away. I found it interesting to hear Obama refer to it as "Top Down" - recently.
Are we truly just market support, or can the common man profit the same since its relative to his net worth?
2. Our economy IS the world economy, and visa-versa. I found it interesting the Mortgage bust bailout of 800 billion dollars. Did anyone stop to note that you must first sell a bond in a natural market to PRINT A DOLLAR. Therefore, in the essence of salvaging the world economy, we essentially INFLATED IT by this amount. The most the Chinese (who own everything in this country by the way, making the Japanese ownership of the eighties looks like a short term lease - LOL) could say is "you need to manage your money better". Their is little doubt that if you traced ownership to the banks profit taking in the ill advised mortgage lending of the 2000's, there would be strong Chinese ownership - amongst others. Ever wonder why mortgages were immediately sold after they were initially written.?!
3. Lately, you have the interesting conundrum of the oil & gas industry. A market the has managed to DEFY ALL RATION AND LOGIC of natural supply and demand. Its funny how the market principle, the commodity of oil completely defied all laws of nature. And no one was the wiser. Did anyone ever stop to think that gasoline is only a small part of the oil drilling derivatives marketed.? DO YOU THINK THAT BILLY BOB EVER PAID A DIME MORE THAN 50$/Barrell for oil?!? Do you believe that he ever paid him the exorbitant price of 150$ as it was in 2008. Which also happened to be the year Exxon started having record profits. The year that gasoline DOUBLED in price from 2.00 to $4.00 per gallon. I would speculate Billy may have paid as high as 65$ a barrel, and up from $50.00. But never 150$. So the price of tires went up 20$ along with other oil and gas products, but gasoline DOUBLED!?!?!?? The tire prices are the TRUE proof and what Billy Bob had to pay. The price of gas is somehow reflective of the MARKET COMMODITY - OIL. And in no way related to REALITY. Yet........ A condition of our political administration? Me thinks. Did anyone ever stop to realize there is NO OIL SUPPLY CRISIS ANYWHERE. In fact there is enough to burn up the entire environment. Did anyone stop to think that the reason the US started buying oil from tribes in the middle east was that is was just CHEAPER to go over there, pay them dirt, and UPS it all the fucking way back here. PERIOD. Anyone ever wonder why we don't give a shit about all the other suppliers around the world.?! Money = Business IS People = PEOPLE is POLITICS. We have a place to get it where the price is right...
4. It was the saddest day in our economy - The day the price for a gallon of milk hit $6.00. The middle class COMPLETELY FORGOTTEN... The poor subsidized by the Government. The rich not concerned. Yet the middle class BLIND due to the apathy of mediocrity. Wealth and liquid DOES remain in this country and in the hands of today's senior citizens. The race is on now to see who can get it....! Make no mistake that I have great love for the Bush family and I think the presidency of W. was just fine. The CONDITIONS to which I speak are beyond his, or any one mans control. Do you really believe that he could have just thrown his hands in the air citing "this aint right", and made a change. I think not. The power of money is a monster with a face of its own.... And as long as the poor are vacationing around in their cars, and just driving around the streets like their cars are large sea bearing vessels with unlimited supplies, the justification for the price is there.
We are on fickle ground indeed. But the machine will protect its self to whatever degree it must. However, the middle class MUST be supported. After all, you have to mow the lawn if you want to sit comfortably in your home on a Saturday afternoon. Anarchy, insurrection, the potential new world order can potentially begin with the elimination of the middle class. There must remain a large separation by numbers between the rich and the poor. At least 50% I speculate. And the rich being 2% so for now its safe. However the poor to middle ratio is most likely down around 50/50 I speculate 49 and 49%. This is not a good foreboding. General Premise, hope, and relativity are the elements that maintain blind order. At this time we are afforded ONLY the luxury of the early bird gets the worm, or he who arrives first - does best if done right. but their is world market competition now ranging from end products to labor. I just hope this element has been correctly considered, for it has exponential potential in action. Greenspan comming out of office was a great loss to the world economy. Some part of me cant help but wonder if it was not to do with his involvement with the Clinton administration, and the loss of the fortitude that may have come from that experience. While Clinton is a great economist within himself, things occurred that defied basic laws and principles.
Did you know the FED is completely AUTONOMOUS from the Government, and is self regulated in action once appointed.?? in theory.... yes... Tidbits to chew on...
We are ALL guilty. Really the luxury afforded has come to us as a nation. The damage on the world economy can have serious repercussions however. When PROFIT TAKING Goes so broad in scope that in trickles all the way down the the common folk (mortgage era). This is broad in scope. And the best secrets are only the best until realized and no longer secret. We must make changes now. There is too much at stake considering where the rest of the world is going and what the are going to do in their futures. And you cant just put up walls and let them eat themselves. There is a reason we have to police the world, and it has to do with the Gatrillion dollars in debt we own. People can sit back and say the the US is overbearing, but it boils down to a burden of responsibility. And not an easy one to bear as a price paid.
So whats YOUR WORTH in this world. What is the paper dollars as currencies became worthless and we were back to the old barter system.?! After all, at the end of the day and when all the profit taking is done - its about supply and demand. What is your REAL VALUE... Whats funny is that if the coin ever flips to reality, all the money makers and movers have ZERO WORTH, and the laymen, the working class have ALL THE VALUE. The guy sitting on wall street living in the 20 million dollar apartment would have no means to even eat. As all his stock has been vested in the market of Money...
