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sa meredith · 09-30-2008, 05:35 PM

Stock market is (on a very basic level) made up of two parts.
Expectation (speculation) and earnings (a stocks true value).
The stock price rises as people expect (speculate) the stocks earnings (the stocks actual value) to rise. AAAAhhhhhh, but when expectation does not equal earnings, you have a fault, that eventually needs to be corrected...which, of course, is why it is called a "market correction".
And this time the market is correcting, and correcting, and correcting, and correcting, and correcting.....get it?
Most of these stocks were never valued at the price people speculated they would one day be worth. Never. Never even close. Why, then, would people but the stocks. They didn't know they were. You see, most American workers contribute each week to this magical thing called a 401K. They don't really know were the money is going...they just know that 7 or 8 or 9 or 10 percent disappears each week from their check (gross, not net, so pre tax) and goes into some pool (for lack of a better word), and then once a quarter they get a statement from some faceless money management company, and for many many years the return on these investments was effortlessly huge (or at least very good) so, why question it. Keep on going, keep on giving...
Well, those real dollars we all contributed, were not treated as real dollars by brokers, and market speculators who produced fake balance sheets (see: Enron et all) who continue to trade with our dollars, and buy into false expectations, with our real dollars....and now, well, thanks for playing. Please see the man at the door to settle all accounts. You're money???Well, uummm...about that....

09-30-2008, 05:35 PM	#97
sa meredith Senior Member Join Date: Jun 2007 Posts: 986 Blog Entries: 1 Thanks: 32 Thanked 352 Times in 137 Posts	try this Stock market is (on a very basic level) made up of two parts. Expectation (speculation) and earnings (a stocks true value). The stock price rises as people expect (speculate) the stocks earnings (the stocks actual value) to rise. AAAAhhhhhh, but when expectation does not equal earnings, you have a fault, that eventually needs to be corrected...which, of course, is why it is called a "market correction". And this time the market is correcting, and correcting, and correcting, and correcting, and correcting.....get it? Most of these stocks were never valued at the price people speculated they would one day be worth. Never. Never even close. Why, then, would people but the stocks. They didn't know they were. You see, most American workers contribute each week to this magical thing called a 401K. They don't really know were the money is going...they just know that 7 or 8 or 9 or 10 percent disappears each week from their check (gross, not net, so pre tax) and goes into some pool (for lack of a better word), and then once a quarter they get a statement from some faceless money management company, and for many many years the return on these investments was effortlessly huge (or at least very good) so, why question it. Keep on going, keep on giving... Well, those real dollars we all contributed, were not treated as real dollars by brokers, and market speculators who produced fake balance sheets (see: Enron et all) who continue to trade with our dollars, and buy into false expectations, with our real dollars....and now, well, thanks for playing. Please see the man at the door to settle all accounts. You're money???Well, uummm...about that....