The stock market is not the definition of government’s financial stability or debt. It is but a minor reflection that far more reflects the private market. Though failures and successes in government will have some effect, it is more so those effects on the business market that actually relate to the stock market.
What IS a better reflection is mounting debts, deficit spending and loans (or the inverse if it were possible). Let’s say that you make a million a year, but have taken out millions in loans to spend millions a year as well. Eventually you get to a point that no matter how much you make, even if you could increase it and cut spending, you can’t even cover the interest to ever decrease the principle loan. That is where we are. And who is that debt owed to? China, primarily. Thus, ownership.
If you owed a bank millions of dollars but could not pay, they would take what you owe as payment for that debt.
‘The borrower is always the servant to the lender.’ That’s actually a biblical principle. As such, it is possible that the one that owns your debt can have you do as they will until the debt is considered repaid.
In stocks, if you own 51% or more of the company via the appropriate stock then you essentially own the company as your votes could never be overthrown. If China owns that majority of our debt, they technically own us… regardless of how the Dow does.
But maybe that’s too difficult for cro magnon man to understand no matter how many different ways it’s explained.
Those who have 401K accounts are cheering the stock markets rise! Compared to the paltry interest rates banks are offering, Wall Street is a god send!!
i buy on the 4th tuesday of the month–when rollercoaster slides downward. it always humps it up in the first ten days, you know: PayDay! it’s Dividend time! then every one sells off and it falls back down again.
i made a capital gain of 125% last year. marvelous!
DjGuardian over 13 years ago
And?
The stock market is not the definition of government’s financial stability or debt. It is but a minor reflection that far more reflects the private market. Though failures and successes in government will have some effect, it is more so those effects on the business market that actually relate to the stock market.
What IS a better reflection is mounting debts, deficit spending and loans (or the inverse if it were possible). Let’s say that you make a million a year, but have taken out millions in loans to spend millions a year as well. Eventually you get to a point that no matter how much you make, even if you could increase it and cut spending, you can’t even cover the interest to ever decrease the principle loan. That is where we are. And who is that debt owed to? China, primarily. Thus, ownership.
If you owed a bank millions of dollars but could not pay, they would take what you owe as payment for that debt.
‘The borrower is always the servant to the lender.’ That’s actually a biblical principle. As such, it is possible that the one that owns your debt can have you do as they will until the debt is considered repaid.
In stocks, if you own 51% or more of the company via the appropriate stock then you essentially own the company as your votes could never be overthrown. If China owns that majority of our debt, they technically own us… regardless of how the Dow does.
But maybe that’s too difficult for cro magnon man to understand no matter how many different ways it’s explained.
William Bednar Premium Member over 13 years ago
Those who have 401K accounts are cheering the stock markets rise! Compared to the paltry interest rates banks are offering, Wall Street is a god send!!
dfowensby over 13 years ago
i buy on the 4th tuesday of the month–when rollercoaster slides downward. it always humps it up in the first ten days, you know: PayDay! it’s Dividend time! then every one sells off and it falls back down again. i made a capital gain of 125% last year. marvelous!
DjGuardian over 13 years ago
^ nice