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A Man of Wealth and Taste
Join Date: Dec 2002
Location: Out there somewhere beyond the doors of perception
Posts: 51,063
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Mother is the one who keeps telling me how GM saved America by going to Zero % financing. After all Greenspan is her friend, so she oughta know? It kept people buying cars, the cash flowing.
Most of those increased prices are just now coming outa the pipeline. My Landscaping is going to cost $500 more this year than it would have last year. The Contractor told me it was due to the increased cost of fuel and how it has driven the costs of everything he does upward. What has kept a lid on prices is that there is virtually NO WAGE INFLATION.
The Stock and Bond Markets were closed for a week to provide a cooling off period so that people would act more rationally. Event though the Market was down for a week, it still dropped 500 points upon opening. Can U imagine what would have happened if it had opened the next day? Further what U have to realize is that BANKs & Brokerage Houses MAKE MARKETS FOR COs STOCKS. That means if the price of a stock reaches a certain level the Bank etc will buy those shares to maintain a stable price for those shares. If the system is swamped with sell orders soner or later the Bank will run outa cash to buy those shares. When that happens its a case of free fall and no one knows where it will stop.
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"Some Observer"
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