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I don't believe most people comprehend how deep the mania reached into corporate America, Government America and the rest of the world. The delusion that stocks that weren't paying a return would continue to go up in value seemed to permeate the minds of most people. If one sector went bad, just jump to another. But the door got narrower and narrower until you can only play short term rallies and get to cash before everyone else beats you to the punch.
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Another Great Post By Mannfm1/ Prubear Site
Larry, come join us.
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#1
The End 
- Anything is possible!
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Posted 28 January 2003 - 09:29 PM
NONE of what I type, should be taken as financial advice.
And when you loose control, you'll reap the harvest that you've sown
And as the fear grows, the bad blood slows and turns to stone
And it's too late to loose the weight you used to need to throw around
So have a good drown, as you go down, alone
Dragged down by the stone.
--Waters
And when you loose control, you'll reap the harvest that you've sown
And as the fear grows, the bad blood slows and turns to stone
And it's too late to loose the weight you used to need to throw around
So have a good drown, as you go down, alone
Dragged down by the stone.
--Waters
MultiQuote
#2
machinehead
- Dean of Stock Proctology
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Posted 28 January 2003 - 10:00 PM
Excellent commentary, The End. You're right, market cap hit 81% of GDP in August 1929, and about the same level in the mid 1960s. But in March 2000, market cap hit ONE HUNDRED EIGHTY-ONE PERCENT (181%) of GDP.
This fever chart from Bianco Research documents the towering insanity:
Market cap / GDP (pdf)
What did investors do after stocks were discredited in the U.S. (1930s) and Japan (1990s)? They bought low-coupon government bonds, which already had most of their capital gains behind them. (Ten-year JGB yields fell to 0.78% yesterday.) And suffered years of near-zero real returns.
Are they really going to do that again? What do the Wall Street spinmeisters have planned this time? Death by bonds? Or death by real estate limited partnerships?
This fever chart from Bianco Research documents the towering insanity:
Market cap / GDP (pdf)
What did investors do after stocks were discredited in the U.S. (1930s) and Japan (1990s)? They bought low-coupon government bonds, which already had most of their capital gains behind them. (Ten-year JGB yields fell to 0.78% yesterday.) And suffered years of near-zero real returns.
Are they really going to do that again? What do the Wall Street spinmeisters have planned this time? Death by bonds? Or death by real estate limited partnerships?
"GOLD -- it's not just for misers anymore."
"Dollahs -- fire-starters for the K-wave winter." - Drano
"Three humps and a dump." - anotherone, 21 SEP 2004
"No gold was harmed in the making of this movie." - Bizarro Greenspan
[i]"Da Track. Da place where Morons bet on Animals Controlled by Criminals." - our jickiss
"Dollahs -- fire-starters for the K-wave winter." - Drano
"Three humps and a dump." - anotherone, 21 SEP 2004
"No gold was harmed in the making of this movie." - Bizarro Greenspan
[i]"Da Track. Da place where Morons bet on Animals Controlled by Criminals." - our jickiss
#3
Goldilocks
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Posted 28 January 2003 - 10:24 PM
TE,
You think GM goes down first? I have my money on Ford. Their debt to assets ratio is a sick joke. Why do you say GM?
You think GM goes down first? I have my money on Ford. Their debt to assets ratio is a sick joke. Why do you say GM?
#4
DogBoy
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Posted 28 January 2003 - 10:30 PM
The Debt Bomb will be the like the ultimate cluster bomb.
It'll take everything with it --- totally indescriminate.
US auto makers havne't made a dime on manufacturing for 20 years or more.
As long as those financial black boxes remain sealed they'll be in biz even if not a single soul is buying new cars.
The only problem for them will be trying to convince normal folks that an auto manufacturuer that really doesn't make any cars to speak of is still a good "buy".
Wall Street doesn't need convincing. They're like Mikey --- they'll buy anything.
It'll take everything with it --- totally indescriminate.
US auto makers havne't made a dime on manufacturing for 20 years or more.
As long as those financial black boxes remain sealed they'll be in biz even if not a single soul is buying new cars.
The only problem for them will be trying to convince normal folks that an auto manufacturuer that really doesn't make any cars to speak of is still a good "buy".
Wall Street doesn't need convincing. They're like Mikey --- they'll buy anything.
#5
DrStool
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Posted 29 January 2003 - 08:40 AM
Sharing messages and information from other websites is the lifeblood of the internet. I always ask that we do not copy and paste origianl material in full, just a snippet and a link to the source. Copyrights apply to messages posted on other boards too. So let's just give a snippet-- 1 paragraph is plenty- and a link to the original post on the board where it came from. Support our friends all over the web. Be a good stoolizen!
I have made the necessary changes to the first post.
I have made the necessary changes to the first post.
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