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alstry (35.49)

Any Common Cents Left???

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December 17, 2008 – Comments (3)

One pension fund loses $60 Billion in a few months.  A hedge fund hoses investors for $50 Billion.  An entrepreneur in Minnesota bends over his investors for a couple billion.  Rubin sued for costing investors over $100 Billion.  Anyone adding this up?????

We have only identified four issuess and we approaching a quarter of a trillion dollars.  We are not even discussing the trillions of lost wealth in residential and commercial real estate.  What about the trillions of lost mortgage values?

I estimate about $20 Trillion of wealth was lost in 2008 alone between stocks, bonds,  mortgages, and real estate.

Demon,

you think printing a few trillion dollars or a less than a trillion dollar stimulous plan is going to make up for this evaporation of wealth and money?????

Not, only that, we are just entering the major part of the job loss cycle..............and we are giving banks money for free and charging consumers through the gills.........

from this perspective, common sense is being thrown out the window.  Few people add anymore.....now you know why understanding accounting is far more important than economics when it comes to understanding the health of business.  Reality trumps BS everytime.

We are not too far from calling code blue........is there a Dr. in the house?

3 Comments – Post Your Own

#1) On December 17, 2008 at 3:35 PM, outoffocus (24.44) wrote:

Sorry but common sense died a long time ago. Sometime before the start of the millenium.  It was replaced with common insanity.

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#2) On December 17, 2008 at 3:42 PM, DemonDoug (98.85) wrote:

Alstry, I'm going to be 100% honest here in answering.

Demon,

you think printing a few trillion dollars or a less than a trillion dollar stimulous plan is going to make up for this evaporation of wealth and money?????

My answer is officially "I don't know."

There are so many good arguments for both inflation and deflation, I can't make heads or tails out of it anymore.  Yes, all your points are valid, but so is Sinchi's latest post on the dollar falling off the cliff.  Then again for deflation, the WSJ article yesterday highlighted many trillions of yen that did nothing for that currency in terms of inflation.

The question that I have not had answered is this:

"Can there be consumer price deflation at the same time there is monetary base inflation?"

The answer to this would be "yes," because that describes Japan exactly.

HOWEVER, Japan did not double their currency in 3-4 years time, as we have been doing, their yoy currency changes were more in the 3-6% range, not the 10-20% range as the US is.

For inflation: Obama's 2 trillion dollar stimulus package.

For deflation: The FIRE economy is so separated from the production/consumption economy, the money will be shut off into the p/c economy.

On and on I go.

At this point I'm just staying diversified with 60-70% cash and the rest in solid companies.

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#3) On December 17, 2008 at 5:26 PM, zygnoda (27.20) wrote:

I saw a show on cnbc about a guy who scammed people out of $450 million.  It's only peanuts in comparison to what's happening right now.  Yet somehow the government is going to stop the train.  Good luck to them!

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