NO Bailout for ANYBODY!!!

[House]

sidenote... i got some at brandeis once

Heres a great thread from BW

10 years of nonexistent stock returns
Posted by: Michael Mandel on September 24

I’ve been thinking about whether to put more money into the stock market, or take my remaining money out. I’m still undecided, but here’s the thing. When I looked back over the last 10 years, I discovered that the inflation adjusted return on the S&P 500 was -17%. Including dividends, the inflation-adjusted return was only -2%.

That’s astounding, especially given the supposedly high profits and the low interest rates.

If the stock market accurately reflects the state of the U.S. economy, that means the past ten years have been an era of stagnation for the U.S. That’s a perspective I’ve been moving towards, unfortunately, over the past couple of years.

That suggests the excess buildup of debt was the result of economic weakness, rather than the cause of weakness. It also goes in parallel with the almost nonexistent real wage growth over the same period.

http://www.businessweek.com/the_thre...rs_of_non.html

[Moksha]

From my personal archives:

http://people.brandeis.edu/~cecchett/pdf/cpi4.pdf

As this crisis is coupled with a housing meltdown and a drying up of credit market, I'm not sure that this analysis (which was made at the height of the dot com bubble) really relates too much. The health of financial institutions has a lot more influence on the overall econoomy than Yahoo shares.

[Moksha]

Heres a great thread from BW

10 years of nonexistent stock returns
Posted by: Michael Mandel on September 24

I’ve been thinking about whether to put more money into the stock market, or take my remaining money out. I’m still undecided, but here’s the thing. When I looked back over the last 10 years, I discovered that the inflation adjusted return on the S&P 500 was -17%. Including dividends, the inflation-adjusted return was only -2%.

That’s astounding, especially given the supposedly high profits and the low interest rates.

If the stock market accurately reflects the state of the U.S. economy, that means the past ten years have been an era of stagnation for the U.S. That’s a perspective I’ve been moving towards, unfortunately, over the past couple of years.

That suggests the excess buildup of debt was the result of economic weakness, rather than the cause of weakness. It also goes in parallel with the almost nonexistent real wage growth over the same period.

http://www.businessweek.com/the_thre...rs_of_non.html

Yep... gotta agree with that.

It gets really scary when Asian countries start to panic about their foreign curency reserves devaluing...

[House]

As this crisis is coupled with a housing meltdown and a drying up of credit market, I'm not sure that this analysis (which was made at the height of the dot com bubble) really relates too much. The health of financial institutions has a lot more influence on the overall econoomy than Yahoo shares.

The article was written at the height of the dot com bubble but it was not reflective of such

But for comparison sake lets compare the two

The dot coms bubble was built on non existent values attached to the dot com industry

the current financial bubble was built on non existent values attached to real estate

imo, the article is HIGHLY relevant in that it speaks to the fact that the markets corrections of itself are already built into folks consumption patterns. Many of us have already adjusted our buying habits to declining economic conditions that have nothing to do with the stock market (such as the decline in real wages over the past ten years). The decline in the market is just Wall Streets belated realization that the party is over. The average American got that dis-invite over a year ago (BOOM!!!)