[A-List] Funny money
tboyle at rosehill.net
Tue Oct 14 21:54:25 MDT 2008
Money is a lousy way for 7 billion humans to communicate
the range of our economic needs and our potential offerings
among each other.
It is like engineers trying to design a pacemaker by sitting in cars,
and communicating by honking their horns at each other.
former CPA and fed up with it
At 02:00 PM 10/14/2008, Leighm wrote:
>Two words: 'Tulip bulb'...
>Today a Yale economist says the money invested
>in the market is just a âfallacyâ. It isnât ârealâ money, he says:
>âRobert Shiller, an economist at Yale, puts it
>bluntly: The notion that you lose a pile of
>money whenever the stock market tanks is a
>âfallacy.â He says the price of a stock has
>never been the same thing as money - itâs
>simply the âbest guessâ of what the stock is worth.
>âItâs in peopleâs minds,â Shiller
>explains. âWeâre just recording a measure of
>what people think the stock market is worth.
>What the people who are willing to trade today -
>who are very, very few people - are actually
>trading at. So weâre just extrapolating that
>and thinking, well, maybe thatâs what everyone thinks itâs worth.â
>Charles Brown wrote:
>>Wm. Terry L., RN:
>>Iâve read all the articles about the causes
>>of the current crash of the market but read
>>little about solutions for the worker who has
>>been forced to place money into 401k and 403b defined contribution plans.
>>Unions have long opposed these plans because of
>>the possibility of the current crash happening.
>>It was only a matter of time before the
>>hyper-inflated market would come crashing down
>>with lack of regulation, short selling and just outright corruption and greed.
>>Even the venerable Wall Street Journal admitted
>>the defined contribution plans (401k type
>>plans) for retirement resulted in an 11%
>>decrease in worker
>>Today a Yale economist says the money invested
>>in the market is just a âfallacyâ. It isnât ârealâ money, he says:
>>âRobert Shiller, an economist at Yale, puts
>>it bluntly: The notion that you lose a pile of
>>money whenever the stock market tanks is a
>>âfallacy.â He says the price of a stock has
>>never been the same thing as money - itâs
>>simply the âbest guessâ of what the stock is worth.
>>âItâs in peopleâs minds,â Shiller
>>explains. âWeâre just recording a measure
>>of what people think the stock market is worth.
>>What the people who are willing to trade today
>>- who are very, very few people - are actually
>>trading at. So weâre just extrapolating that
>>and thinking, well, maybe thatâs what everyone thinks itâs worth.â
>>Shiller uses the example of an appraiser who
>>values a house at $350,000, a week after saying it was worth $400,000.
>>âIn a sense, $50,000 just disappeared when he
>>said that,â he said. âBut itâs all in the
>>I asked my wife if she felt the 403b deductions
>>taken from her paycheck as a RN working in the
>>public sector was real money. She seemed to
>>think an earned wage with money taken out for
>>retirement is real. But looking at her AIG
>>quarterly statement yesterday showed she just
>>lost 20% of her retirement. That was ârealâ money she lost.
>>When I look at my PERA funds and think about
>>all the years spent in public psychiatric
>>hospitals as a RN, I think of the money taken
>>from my paycheck for retirement as ârealâ
>>money. I earned it. My wife earned her money.
>>Wall Street corruption stole 20% of our retirement funds. Now thatâs real.
>>So, we can play all these mind games about the
>>reasons the markets crashed but the real pain
>>isnât on Wall Street. The real pain is with
>>the workers who worked 40 hours (plus overtime)
>>and allowed their wages to be used by brokers
>>to play Monopoly. That was real working hours
>>spent to earn real wages that went into
>>retirement plans dictated by employers who went
>>to defined contribution plans so they could lessen their contributions.
>>Professor Shiller can play all his intellectual
>>bullshit games about the concept of playing the
>>market but heâs useless in coming up with any
>>ârealâ solution for all the workers who
>>trusted the corrupted system to keep their retirement funds safe.
>>I read about senior citizens living in their
>>cars because of foreclosure in the AARP
>>Bulletin and think of Henry Fonda playing his
>>role in John Steinbeckâs âGrapes of
>>Wrathâ. He was playing a role but the seniors
>>and all the others sent packing are real.
>>And the beat goes on with the taxpayers
>>rescuing Wall Street swindlers and not a damn
>>thing happening to rescue workers or former
>>workers. Whereâs all the intellectual
>>geniuses of economics who have a solution to
>>help ease the real pain of workers? Quit your
>>interviews and all the intellectual posturing
>>and come up with real solutions. We donât
>>give a damn about deriatives and all the other
>>manipulations to steal if there isnât a
>>solution that the people can get behind and demand it be implemented.
>>This message has been scanned for malware by
>>SurfControl plc. www.surfcontrol.com
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