Hello, You may have some valid points here but 10% for me at least is not really anything worth panicing plus making people belive that central bank will always step in and bail out the market in case of any 5% down move makes people just more reckless in their decisions and this in turn may create new (old?) problems in long term.
Best regards, Tomasz Janeczko amibroker.com ----- Original Message ----- From: "Yuki Taga" <[EMAIL PROTECTED]> To: "Tomasz Janeczko" <[email protected]> Sent: Wednesday, January 23, 2008 2:00 AM Subject: Re: [amibroker] Helicopter Ben :-) > Hi Tomasz, > > Yes, when world equity markets drop ~10 percent in 2 days in concert, > you are talking 10s, maybe 100s of trillions of dollars. Yes, a lot > of that is just 1s and 0s stored on computers, but if you don't agree > that its presence, or its sudden disappearance, influences human > behavior to a tremendous extent, then I don't know what I could > possibly say to convince you otherwise. The markets certainly > believe that all those 1s and 0s that have recently disappeared from > major money center banks have some real consequences. > > You know I'm hardly going to argue against the cyclical nature of > markets. I have long made a nice living off of them. But sudden, > violent contractions in wealth have real consequences. The Fed knows > there is little they can ultimately do about the market's course, but > they are going to try and turn a waterfall into at least a cascade, > or a rapids. That's probably a good idea, too. > > At times like yesterday, anything that gets people thinking, even a > little bit, instead of reacting in blind panic, is probably a good > idea. Markets are acting like a deep and long recession is already > baked into the cake. Maybe, but not necessarily. Tossing a monkey > wrench into the wheels of the panic bus in order to maybe slow it > down a little is probably not a bad idea. > > Also, as I'm sure you know, but as your words seem to obfuscate, > lowering interest rates is not exactly the same thing as printing > money. > > And I think it is competition, not recessions, that do the real heavy > lifting of improving efficiency. > > Yuki > > Wednesday, January 23, 2008, 8:42:07 AM, you wrote: > > TJ> Hello, > > TJ> Trillions of dollars ? Or rather "paper profit" (the numbers stored in > computers)? > TJ> The entire nature is cyclical. Autumn and winter comes after summer, > what's wrong with that? > > TJ> Recession follows the period of growth. And it forces companies to seek > TJ> more efficiency and makes them more competitive. That's healthy for the > economy. > TJ> Fed printing money does not make you wealthier, you will just see more > zeros in numbers > TJ> on your computer screen but this means nothing. What's the difference if > someone > TJ> is losing wealth by market fall or by money devaluation? Only the one who > has the printer > TJ> benefits from that. > > TJ> Best regards, > TJ> Tomasz Janeczko > TJ> amibroker.com > TJ> ----- Original Message ----- > TJ> From: "Yuki Taga" <[EMAIL PROTECTED]> > TJ> To: "Dennis Brown" <[email protected]> > TJ> Sent: Tuesday, January 22, 2008 11:34 PM > TJ> Subject: Re: [amibroker] Helicopter Ben :-) > > >>> Hi Dennis, >>> >>> Think about what you said compared to the reality of the situation. >>> Nearly unregulated free-market capitalism (as in CDOs, SIVs, et al) >>> just about brought down the house. >>> >>> It's a funny cognitive dissonance. Ultra-right religious >>> conservatives (not saying you are one), who are often also pure >>> laissez faire market people (ditto), accept the negatives of human >>> nature as inevitable when it comes to moral issues. But somehow, >>> this same negative human nature is presumed, one would apparently >>> suppose, to just vanish once human beings step forth into the holy >>> cathedral of completely unregulated capitalism. "Let the markets run >>> themselves completely," they say. But every time they get their way, >>> they or the markets just about run the truck into a ditch. >>> >>> There. If you start a thread with serious potential for *conflict*, >>> Dennis, load the wagons! ^_- >>> >>> Yuki >>> >>> P.S. Given the non-zero sum nature of equity markets, and their >>> size, it's probably not a bad idea to do something in an attempt to >>> stop potentially trillions upon trillions of dollars from simply >>> being panicked out of existence. Money is simply uncreated, to use a >>> rather ugly phrase, for the most part. That was allowed to happen in >>> the early 1930s, with pretty sad consequences. >>> >>> Wednesday, January 23, 2008, 12:38:32 AM, you wrote: >>> >>> DB> Hello Tomasz, >>> >>> DB> There are many of us in this country (USA) that want to see the >>> DB> markets take care of themselves. Unfortunately not enough are aware >>> DB> of the issues involved and there is only one person running for >>> DB> President that has that goal --Ron Paul. >>> >>> DB> It may take a complete financial disaster before everyone wakes up >>> DB> and realizes that centralized control does not work well. No small >>> DB> committee can understand all the factors involved in an economy. If >>> DB> they could, then it follows that a small number of people (or an >>> DB> individual) could know enough to make a quick fortune in fundamental >>> DB> investing. And we know how hard that is to achieve! >>> >>> DB> Best regards, >>> DB> Dennis >>> >>> DB> On Jan 22, 2008, at 10:23 AM, Tomasz Janeczko wrote: >>> >>>>> Hello, >>>>> >>>>> So helicopter Ben is in full panic mode now :-) >>>>> >>>>> It is pretty amazing and funny to see how this "free economy" is >>>>> hand-operated :-) >>>>> >>>>> Best regards, >>>>> Tomasz Janeczko >>>>> amibroker.com >>>>> >>>>> >>>>> >>>>> Please note that this group is for discussion between users only. >>>>> >>>>> To get support from AmiBroker please send an e-mail directly to >>>>> SUPPORT {at} amibroker.com >>>>> >>>>> For NEW RELEASE ANNOUNCEMENTS and other news always check DEVLOG: >>>>> http://www.amibroker.com/devlog/ >>>>> >>>>> For other support material please check also: >>>>> http://www.amibroker.com/support.html >>>>> >>>>> Yahoo! Groups Links >>> >>> >>> >>> >>> Please note that this group is for discussion between users only. >>> >>> To get support from AmiBroker please send an e-mail directly to >>> SUPPORT {at} amibroker.com >>> >>> For NEW RELEASE ANNOUNCEMENTS and other news always check DEVLOG: >>> http://www.amibroker.com/devlog/ >>> >>> For other support material please check also: >>> http://www.amibroker.com/support.html >>> >>> Yahoo! Groups Links > > > > > Please note that this group is for discussion between users only. > > To get support from AmiBroker please send an e-mail directly to > SUPPORT {at} amibroker.com > > For NEW RELEASE ANNOUNCEMENTS and other news always check DEVLOG: > http://www.amibroker.com/devlog/ > > For other support material please check also: > http://www.amibroker.com/support.html > > Yahoo! Groups Links > > >
