The concept of wealth is rather subjective. It is true that most stock portfolios are down substantially, (eg down about 50%), form their highs when the DJIA was up over 14,000, but the values are based the euphoria and fears. The underlying assets like houses, corporate land, plant, and equipment and the capacity of land, plant, equipment and labour to produce the good and services have not really changed. For example, a house that sold for $450,000.00 during the boom is the same house that sells for $325,000.00 today, and the houses utility has not changed, so the owner who enjoys the house today is just a wealthy now as he was during during the boom. Although the stock market is down today and everyone is obsessing over their losses, the losses exist on paper only, and thus aren't real. A gain or loss only occurs when the asset is actually sold, and the seller has cash in hand. Until then, the losses exist on paper only, and in the minds of people, so the underlying wealth has not really changed, and those who are patient will in time find everything returning to normal.
Regards, LelandJ Bob Calco wrote: > http://tinyurl.com/cqquz2 > > - - - > "A smidgen of good news and suddenly everything is doing great. A little bit > of bad news and ooohh , we're down on the dumps," Obama said. "And I am > obviously an object of this constantly varying assessment. I am the object > in chief of this varying assessment." > > "I don't think things are ever as good as they say, or ever as bad as they > say," Obama added. "Things two years ago were not as good as we thought > because there were a lot of underlying weaknesses in the economy. They're > not as bad as we think they are now." > - - - > > But... > > http://tinyurl.com/b5857e > > - - - > NEW YORK (Reuters) - Private equity company Blackstone Group LP (BX.N) CEO > Stephen Schwarzman said on Tuesday that up to 45 percent of the world's > wealth has been destroyed by the global credit crisis. > > "Between 40 and 45 percent of the world's wealth has been destroyed in > little less than a year and a half," Schwarzman told an audience at the > Japan Society. "This is absolutely unprecedented in our lifetime." > - - - > > OK so now that Barry is "the object of this varying assessment" it's not as > bad as it seems? > > I guess this means he officially recognizes that he owns this situation now. > His mistake is to think it's all about him. > > And the truth is, it's worse now than it would be, because of his actions so > far. Even libs and long-time Obama supporters like Cramer are coming out and > talking about the destructiveness of his policies---albeit at great personal > and professional risk. > > - Bob > > [excessive quoting removed by server] _______________________________________________ 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.
