sell! sell! sell!

[Dawoofdaddy]

Actually Willie, that was the tail end of the 1970s and early 1980s inflation, but I know what you are posting about.

This inflation was a result of the viet nam war and the great society social programs.

Do these types of events look familiar once again in todays environment here in US?

And what did stocks do (nominally speaking) during that period willie?

Ill help you since I doubt you know much about this.

From period of approximately 1966-1982 stocks basically had a zero nominal return.

Couple that with double digi t year over year inflation during same period and what was the return willie?

Ill help you again, it was negative and in fact, it could be considered a complete wipeout.

 

[Willie99]

And what did stocks do (nominally speaking) during that period willie?

Ill help you since I doubt you know much about this.

From period of approximately 1966-1982 stocks basically had a zero nominal return.

Couple that with double digi t year over year inflation during same period and what was the return willie?

Ill help you again, it was negative and in fact, it could be considered a complete wipeout.

so what happened immediately after that period of high inflation, with expanding credit, with an increasing money supply and with the federal reserve board controlling monetary policy?

unprecedented growth?

 

[Dawoofdaddy]

Willie, the inflation has never ended. What has your cost of living done the past few years.

There are times to be invested in growth stocks and there are times to be invested with other things.

The greatest returns since this century began have been gained owning various commodities.

Something else alot of you guys also dont understand is that many people went bust during tech wreck in nasdaq and never recovered.

Ive posted this hundreds of times here, but still not sure all of you even know that the dow jones is only 30 stocks and some of them are not as widely owned as some names that are still down 50% or more since the 2000 peak.

Why do people quote posts when they are replying immediately following a post?

 

[Willie99]

Come on Woofy, we know the DJIA is just one index. And how have "the other indexes" been doing? This has been broad based growth.

The tech boom of the 90's was a lie. The tech market was being driven by speculation, by hyperbole, by the potential of future profits. At one point, (working off of memory here) Yahoo had a higher street value than either GE or GM (or both). Yahoo never earned a profit at the time and never paid a dividend. Yahoo didn't even own tangible assets or inventory, and could become obsolete tomorrow. Many technologies didn't pan out or became obsolete, the demand wasn't what was projected, there were no profits and the tech driven market collapsed.

Today's surge is based on profits and dividends. It's disingenuous to compare the two markets, and I know you know this (I won't take your condescending path here).

My argument has never been to suggest that there won't be another bad period on Wall St, there will be. It's not to say everything is perfect with our economy, it never ever has been. It's not to say the dollar can fall forever, obviously it can't. My argument has been that the doom and gloomers around here are wrong, that we've survived economic problems and prospered, that the dollar's drop has not been bad for America and that there are more good things going on then bad.

The typical response has been that I or we "just don't understand".

Some guys around here are actually cheerleaders for bad news, kinda pathetic.

 

[Willie99]

Eurozone policymakers will urge the US and other countries at the next G7 meeting to take a strong stance against exchange rate volatility in an effort to halt the dollar’s decline against the euro, European Union officials said on Tuesday.

Finance ministers of the 13-member eurozone plan to forge a common position in Luxembourg next Monday, 11 days before the meeting in Washington of central bankers and finance ministers of the Group of Seven leading industrialised countries.

European politicians and business leaders have issued increasingly loud warnings about the dollar’s decline since the euro rose above $1.40 on September 20 for the first time since its launch in 1999. The euro hit a high on Monday of $1.4281.

Jean-Claude Juncker, chairman of the eurozone finance ministers’ group, on Monday said that the euro’s rise “tends to worry us a lot” and that it was no longer acceptable that Europe was bearing the brunt of “the consequences of the existing global imbalances”.

-------------------------------------------------------------

what am I missing again? :think2:

The Euro is going up and this is a grave concern for Europe :shocked:

How can this be?

:wink:

 

[Romanowski]

Engineered goods especially the automation that goes into these sweat shops overseas have tradiationally been a USA or European gig

more and more We are winning that battle, and even selling our goods in Europe

 

[Dawoofdaddy]

Would you guys that support a devalued dollar explain to me why countries like Panama, El Salvador, and Nicaragua dont control the entire world and earn quadrillions via exporting?

 

[Romanowski]

Would you guys that support a devalued dollar explain to me why countries like Panama, El Salvador, and Nicaragua dont control the entire world and earn quadrillions via exporting?

simple they dont have the buying power, technology (IU efficiency) nor the exports we do

there are pros and cons for a currencies volatility

and comparing the 3rd world nations isnt one of the arguments

there are so many variables you are leaving out

 

[Dawoofdaddy]

Come on Woofy, we know the DJIA is just one index. And how have "the other indexes" been doing? This has been broad based growth.

The Nasdaq isnt much more than half today what it was at the 2000 top, so if thats great news, Im not sure what it will take for guys like yourself to admit alot of people were buried.

S&P (the and most accurate index for overall stock performance among the widely followed indices), is same level it was 8 years ago and alot of that gain can be accredited to oil/energy stocks.

Unfortunately thats where many small investors had their money 8-10 years ago and were wiped out.

How old are you willie? 20s, 30s? Are you invested in stocks? If so, what are your current holdings?

I keep reading how well things are from the bulls here, but few of you actually post what stocks you own.

 

[JoeContrarian]

Right you are, Willie.

Devaluation of the USD is not a bad thing. China is going to be priced out of a lot of stuff, for one, with EU bearing the brunt: win/win.

Anyone remember when the Japs were buying up real estate back in the 80s? Even the Empire State Building and Pebble Beach Golf Course? When all was said and done, we bought back their property at 20 cents on the dollar.

Moral of the story for those panicked by foreign investments or the sagging USD: if they can’t carve it out and take it home, it ain't going anywhere!

 

[Dawoofdaddy]

I hear the stock exchange in Zimbabwe has been going bonkers like to the upside.

Maybe some of you guys should invest there.

Think about all the great returns you are missing.

 

[Dawoofdaddy]

simple they dont have the buying power, technology (IU efficiency) nor the exports we do

there are pros and cons for a currencies volatility

and comparing the 3rd world nations isnt one of the arguments

there are so many variables you are leaving out

And a couple variables you left out.

The United States is the worlds largest debtor, so this buying power is based upon increasing amounts of credit.

Have any thoughts what happens to this buying power when the credit strings get cut off?

 

[JoeContrarian]

Anti-American doomsdayers (the ones who are voting for Ron Paul) suck!

 

[Dawoofdaddy]

But Joe C, we dont suck as badly as you sheeple Bushies wanting to occupy the entire world.

:tongue2:

 

[JoeContrarian]

Have any thoughts what happens to this buying power when the credit strings get cut off?

You mean if China goes "nuclear" on us? Bring it on!

Let them go nuclear on the USD, it will destroy their export economies by raising the price of their exports, and benefit ours by lowering the price of ours. This concern about the USD is foolish, and only applies to those who don’t understand a free market economy and floating currencies. I am surprised you're worried about this Woof as you normally display a deeper understanding of markets.

Must be all that Ron Paul Kool-Aid you're drinking lately.

:wink:

 

[Dawoofdaddy]

Joe, you actually these currencies are trading via free markets?

You couldnt be further from truth than that and US is as guilty as any other country of violating free markets.

Im not all that worried about it Joe, as I own various currencies and precious metals, but I am surprised so many others overall think a tanking US dollar is good news.

Ive been on the Ron Paul kool-aid long before he decided to run for President.

 

[Romanowski]

Anyone remember when the Japs were buying up real estate back in the 80s? Even the Empire State Building and Pebble Beach Golf Course? When all was said and done, we bought back their property at 20 cents on the dollar.

good example

 

[JoeContrarian]

Joe, you actually these currencies are trading via free markets?

No, I don't...that is why I abandoned currencies eons ago.

 

[Dawoofdaddy]

Let them go nuclear on the USD, it will destroy their export economies by raising the price of their exports, and benefit ours by lowering the price of ours.

Chinese exports could overnight increase 50% in price and the US still wouldnt be able to sell at competitive prices.

Hey, the US and rest of the world wanted a capitalist society in China. Next on the menu is Vietnam. Even the Chinese struggle to compete with VN labor costs.

Now that its here, people are whining about it.

 

[JoeContrarian]

Can I let you Paulestinian doomsdayers and whiners in on a little secret?

For anyone who remembers the Japs, let me tell you a little something about China. China is in 10 times WORSE shape than Japan was.

China's future economic implosion can summarized by the Three No's: No water, no wives, no banks. Their entire financial and banking system is on the verge of collapse.

I'm guessing the economic collapse of China will precipitate an attack on either Taiwan or Russia (to seize the Primorski Krai in Siberia which once was China's) as an attempt to overcome economic disaster by appeals to jingoistic Chinese nationalism. That is my best educated guess as to why they are converting all their trade dollars into hard military assets.

The commies know they are fucked -- just like the Kremlin knew during the Cold War.