----- Original Message ----- From: "Kristyne McDaniel" <[EMAIL PROTECTED]> To: "'ProFox Email List'" <[email protected]> Sent: Monday, December 01, 2008 3:20 PM Subject: RE: [OT] How to determine if a market has hit THE bottom.
> Nicholas, > >> Ricardo, you need to understand the concept of money. >> It is irrelevant whether the rich have their worth in >> cash or other instruments. It is still "money" and is >> directly affected by inflation; everything they buy >> including other investment instruments will go up >> in price. > > Another feature of inflation is that all of us with mortgages or other > loans > wind up repaying them in inflated dollars. That fact does even out some of > the impact of inflation on both the rich and the poor, although the poor > obviously are more severely impacted because of the rise in rent, food, > and > other goods. > > Kristyne McDaniel > http://www.kristynemcdaniel.com/blog > http://www.emryldadvantage.com/ > http://www.mcstyles.com/ Good point. Borrowers like inflation because they pay back the same number of dollars but have more of them with which to pay back due to inflation. So far Paulson has lent out or promised over $5 trillion dollars besides the amount actually given away in the first 500Billion under TARP. This is insane!!! We are propping up institutions that should really go out of business to punish the crooks and excessively lousy and greedy management. We will now be left with inefficient firms. Why not give the money directly to laid off workers to help them find another job rather than prop up management? I am convinced it would be a cheaper way to go. If GM or Ford should declare bankruptcy now we can let the market sort out the new supply and pricing of goods. It means all labor contracts and purchasing contracts are null and void and we can start over with a clean slate. Toyota or any other firm currently building cars in America can pick up the slack if necessary. Maybe car prices will drop allowing poorer people to buy one. Airlines declare bankruptcy every year or so and no one seems to have a problem with that. _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
