. . .
K “The Federal Reserve has purposely pursued a policy to punish citizens, including millions of hard working and God fearing Americans in their retirement, who merely seek a predictable and reasonable rate of return on their money. If citizens want any real return on their money, the Fed forced them into the stock market racket.”
J “Which is a crime and really should be punished as a crime.”
K “Except we subsist in a country without the rule of law.”
. . .
K “The Dow was at about 26,000 last week before today’s collapse, yet the real value of the underlying stocks measured by realistic price/earnings ratios is only about 13,000 to perhaps 15,000.”
J “But that type of thinking undermines the consensus that all Americans are financial geniuses.”
K “The ‘Wealth Effect’ is surreptitiously impoverishing many of those financial geniuses. Too many investors/speculators are spending more money or, even worse, incurring more debt without realizing that their faux wealth will soon vaporize.”
J “The ‘Poverty Effect’ will be a bodacious and stupendous bummer.”
. . .
K “Check this out. In a typical stock split, one share at $100 per share is split into two shares at $50 per share. That thinking is so outmoded and outdated. Everything in the stock market is hocus pocus. I propose a reverse stock split where one share at $100 per share is split into two shares at $100 per share. We need to create wealth.”
J “Count me in. The Dow at 52,000. Just like that. Twice as rich. But with the absurdity, the insanity, the depravity and the irrationality that defines our reality, why not a three for one split and thus a Dow of 76,000. Thrice as rich. Just like that. We need to concoct wealth.”
K “Pocus hocus. Count me in.”
. . .
[See the e-commentary at “The Dow Is The Canary (April 26, 2010)”.]
Bumper stickers of the week:
The Dow at 104,000!!!!!!!!!!!
Or not.
e-commentary 