Hi Harry, (HP) <<<< What happens in the stock market has little effect on the economy, though the economy will have an effect on the stock market. >>>>
I agree. (HP) <<<< The stocks which soared with no apparent interest in earnings were acting like collectibles. (With collectibles, the sale price is everything and the income is unimportant - which is just as well for there usually isn't any.) In the collectible market, the easily observable characteristic is unwillingness to sell. (Of course when the market crashes along with everything else, collectors may change their minds.) I should remind you, in passing, that the land market is a collectible market - and there's the rub. >>>> I'm still not au fait with the crux of the Georgist argument with respect to land and collectibles, so I can't yet put myself into your frame of mind to understand you. As to stock market movements, let's simply say that it's much easier for the market to rise than to fall. The vast majority of the financial and economic analysts who write in the papers, equity newsletters and so on, are employed by businesses who want to see (apparent) prosperity driving upwards at a high rate. Besides, the stock brokers to investment and pension funds want to churn shares at a high rate for commission reasons and they can do this without risk (though penalising the fund) if share prices are rising. Peer pressure is always very powerful against the lone voice. It is a brave spokesperson who urges caution in a bull market. It is an exceptionally brave -- and very rare -- person who forecasts a downturn. If he turns out to be right he won't be thanked; if he's wrong he'll never be taken notice of again. When the stock market drives downwards over a long period -- as it seems to be doing now -- bungee-jumping or otherwise -- then there are very serious reasons even if they're not able to be clearly analysed. It also means that a lot of very serious corrections have to be done within businesses, and this takes time. Also, consumers have to pay off their debts and this takes time, too. Keith ___________________________________________________________________ Keith Hudson, Bath, England; e-mail: [EMAIL PROTECTED] ___________________________________________________________________
