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> on your computer screen but this means nothing. What's the
>difference if someone
> is losing wealth by market fall or by money devaluation? Only the
>one who has the printer
> benefits from that.
Well, economic management is an imprecise art anyway because it is
based on statistical analysis which can only be imprecise anyway.
Let's look at a real example.
The Australian (Fed) Reserve Bank is in cycle of monetary tigntening
(small successive increases in the official cash rate). On top of
that the local major banks have added a small increase to their
margins (they have exposure to the US sub-prime market and need to
pay for that).
All market participants (in the ASX) have been making a lot of money,
irrespective of their skills and risk tolerance, and they have been
spending that money (directly or indirectly).
When that (paper profit) money tries up "consumer confidence" falls
and spending slows - so while market valuaition is a nominal number
it has a real impact on economics at the national level.
Presumably the reserve bank (Fed) can expect market corrections to
occur but they don't know when and how big they will be so they have
to take action to stem the flow and they have to take it after the
event (as Yuki said - that is their job - to limit the pain at the
national level while, at the same time, individuals take their
medicine).
brian_z
--- In amibroker@xxxxxxxxxxxxxxx, "Tomasz Janeczko" <groups@xxx>
wrote:
>
> Hello,
>
> Trillions of dollars ? Or rather "paper profit" (the numbers stored
in computers)?
> The entire nature is cyclical. Autumn and winter comes after
summer, what's wrong with that?
>
> Recession follows the period of growth. And it forces companies to
seek
> more efficiency and makes them more competitive. That's healthy for
the economy.
> Fed printing money does not make you wealthier, you will just see
more zeros in numbers
> on your computer screen but this means nothing. What's the
difference if someone
> is losing wealth by market fall or by money devaluation? Only the
one who has the printer
> benefits from that.
>
> Best regards,
> Tomasz Janeczko
> amibroker.com
> ----- Original Message -----
> From: "Yuki Taga" <yukitaga@xxx>
> To: "Dennis Brown" <amibroker@xxxxxxxxxxxxxxx>
> Sent: Tuesday, January 22, 2008 11:34 PM
> 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:
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> >>>
> >>> 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
> >
> >
> >
>
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