Friday, November 6, 2009

The train

There are all sorts of uses for 'train' as a metaphor, the little train that could being one example.

One use denotes the current choice for an individual investor. That is, do we get into, or stay out of, equities, given that the markets are up (as evidenced with a DOW over 10,000)?

Well, in this case, one has to ask, is there such a train? Or, are we where the suckers finally bite just before another crash?

Well, it's hard to say. Some argue that the fundamentals point to the current rally as being a bearish type. That is, not much behind it of a substantial nature. One fact that pops up now and then is that those in the know are selling now whereas back in March they were buying.

This is a typical choice point for Main Street folk as the Wall Street folk show off their gains (some of which are ill-begotten) and make claims for the future.

The story needs to be told is that no one has to board this play train, assuming that it exists. What we have is basically a chimera built upon the sand of casino capitalism. Oh sure, some will continue to benefit; those are the ones who control the game and who are guaranteed their take. Many more will lose.

If we go back to the original principle for using the equity form of capital, we can see that the gaming has been allowed that is unnecessary. There are methods of investing that do not partake of the type of mania that is being sold.

Where this dilemma relates to oops is this, those who come in late, like now, will lose their shirts, most likely. There is no reason to buy in; not doing so will not be anything to rue later.

So, how to describe the issues so that the choices are clear? That is one task.

Remarks:

08/01/2013 -- Ben cannot unwind or taper downhe has too many Doves. We'll have to get back to the king thing (yes, the divine rights of the CEO, new royalty, in other words) and dampening of these types by a new outlook (Magna-Carta'√≠sh).

03/05/2013 -- Ben reigns, but the savers' faces are bruised from his slapping.

10/25/2010 -- Capitalism, as known now, requires an endless supply of suckers.

01/27/2010 -- It's really ca-pital-sino.

11/20/2009 -- Societe Generale is getting negative?

11/08/2009 -- The gigantic chimera needs proper attention.

11/07/2009 -- Actually, there is a train, or, at least, we can use the train metaphor to discuss the economy's purpose and how finance has evolved into a problem (in medical parlance, not unlike a cancer) within that purpose. The particular train being touted now, the play train, is only for those in the game, and we see how they are rolling in the dough (and, bonus time is approaching).

Modified: 08/01/2013

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