Quote:
Originally Posted by Starkler
Aus stock market 20% down from its November high point I heard last night.
Biggest losers are those about to retire. Are they really losers? Was the value at the high point something real or just illusionary? My head hurts.
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There are losers.
Companies will go to the wall hard working folk will loose their jobs.
The way it works is a company sees it has an income flow so it borrows more money rather than paying off the loans it already services.
The creation of corporate wealth is very much an illussion however for oridinary folk who suffer when the stuff hits the fan is unfortunately very real.
I do not consider the buying of a company ..then laying off some of the work force..there by improving the bottom line to justify a recapitalisation to be weath creation..(so many companies kid themselves this way ..efficiency is a given not something to claim they are richer) however the numbers say the company is worth more..short term maybe but in fact the company is worse off..and those chickens are now coming home to sit and cluck.
It will be interesting to see how th market responds..if it picks up it only puts off the day of reconning simply because the system I suggest as being the norm will still go on...
Now is the time to ask your land lord for a rent reduction or your mortgagee for a lower rate.. they now need you not the other way about.
Still it is hard to stop a charging bull (or bear) with reason as your sword.
alex

