45% world's wealth destroyed - page 7
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
?
Hahahaha..THEY may be in very bad company..what you love is irrelevant to most readers of this thread...You know,you are not very fashionable at this forum,as a few of us have tried to inform you
Why do you ask me to stop replying to your posts? Are you afraid? Don`t be so,I will actively stop myself from really harming your underdeveloped sense of selfworth,really....;)...So,your only opinion on this thread theme is that I won`t take any of the 55% left?Interesting..who told you that only 55% was left?..OK,You read it,I understand,you can`t do any critical analysis,in fact,you can just read a few sentences at a time,analyzing them is a no-no,so,I will give you more time to elaborate on that...Then,you can enlight us(probably you will just fire our sense of humour) with your sage comments
.
If you really want to contribute to this forum,please be so kind to explain your views on the issue,we are always interested on your opinion ,on a contrary indicator basis,obviously.
SSimba...have you noticed that you replied to the post not directed to you?
Can i explain my opinion without being flamed by some high spirits who are engaged in a lyrical joust here.. I would simply said that the only way to truly weight the value of an assets, is to evaluate it in men/hour by labor value. If we say that a modest house and the land onto which it is build will take a modest men 20-25 years to pay with around 25% of his income would be a fair value. But the value of this house depends on many other factors. If the demand for that same house is very high because of over population, lack of land, location of the land. The value can fluctuate a lot. But when the only factor giving that house a much higher value is only speculation, as what recently happen in many area around the world, specially in the US with television show like "flip that house". It's about normal that financial crisis happen, when everybody and her sister realize that, oups, the fair value of this house is much lower and they might not be able to sell it back the price they first bought it! Then Yes we can say that psychological value have been destroyed. But what is fair value? Can we really put a price on land? Is one can really be owning land? Or is it only an illusion? Remember during the housing bubble? People started to buy land on the moon!!! Thinking that somebody really have a right to it!
Great Ives:
Well, I think We cant stablish the value of a thing only by the man/hours labour. Will be unfair.
The degree of expertise counts, too (some ppl. study years to reach that stage, you know...). The materials count, too. The transport costs, the energy used, the machinery used in the production, etc..... But if you sum all those issues and stablish a cost for a product, and then a speculator come and sell that good for 300% of the value stablished.....taking advantage of demand pressure or the necessity of ppl....
Ppl. can't really own the land. The governament recognize in you the quality of "owner" only to have a visible responsable to pay taxes for that land, so they can collect $ for every inch of land, not matter if is producing harvest or not,....thats "owner" problem. The land still produce money for government. Problem is when land doesent have "owner", coz they cant charge taxes and cant collect $.
If land is scarce, the better. They can charge much more $. In a good government, that collected money goes to serve the people and improve their lifes and opportunities. Problem is bad government.....
Of course, it is normal that a Doctor or a Lawyer earn more the simple casher at the conveniance store. What i mean is that when a speculator pay 300% to sell it back at 350% to another one who think he gonna sell it back at 400% that we should get suspicious that the bubble will soon explode. Follower of Bob Prechter know this phenomenon as social mood. It happens at the end of big rally impulsion like in an Elliot Wave. Stocks, commodities, housing value all reflect status of the Social Mood witch follows Elliot Wave as per Prechter teach. He claim that we are right now in the wave B of the social mood correction, or maybe even in only wave 2 of bigger Wave A of a major Cycle correction. Some claim that the end of America and capitalism as we know it will end in 2010. If we are as he claim in wave B of the correction, we are soon going to collapse into a bigger drop then in 2008. I'll leave you imagine the rest of the story. But simply ask your self. Are we really in a market recovery? Are the investors ready to re-invest or aren't they waiting to instead sell short? To me it looks more like the risk aversion is much to high for a real recovery. And then another 45% might be destroyed. But this only the future will say.
Replied?
Simba...have you noticed that you replied to the post not directed to you?
Replied?...I used your post as a convenience tool to post my thoughts so that the rest of readers,not you dear Pava,you are beyond help,can be motivated by my words;)
Did you notice that now,some people have started to post intelligent comments on the subject`s thread ?Ok,you probably don`t understand them,but so what ?..You can always try harder.
BTW,We still miss your enlightening comments about the subject`s thread,I am sure they will be as exceptional as the rest of your posts have been at this forum
BTW2..You didn`t reply to my comments,directed to you...Why are you so obviously afraid of my words?..I told you I was going to moderate my responses,so you shouldn`t fear my wrath anymore,hey man,you are my case study,I promise I won`t be too heavy on you,but,please,try to cooperate..so,start by explaining your views,with a minimum degree of elaboration,about the subject of this thread,then we can have a civilized converstion.
Ciao
S
GreatYves&Fxnewbie
Of course, it is normal that a Doctor or a Lawyer earn more the simple casher at the conveniance store. What i mean is that when a speculator pay 300% to sell it back at 350% to another one who think he gonna sell it back at 400% that we should get suspicious that the bubble will soon explode. Follower of Bob Prechter know this phenomenon as social mood. It happens at the end of big rally impulsion like in an Elliot Wave. Stocks, commodities, housing value all reflect status of the Social Mood witch follows Elliot Wave as per Prechter teach. He claim that we are right now in the wave B of the social mood correction, or maybe even in only wave 2 of bigger Wave A of a major Cycle correction. Some claim that the end of America and capitalism as we know it will end in 2010. If we are as he claim in wave B of the correction, we are soon going to collapse into a bigger drop then in 2008. I'll leave you imagine the rest of the story. But simply ask your self. Are we really in a market recovery? Are the investors ready to re-invest or aren't they waiting to instead sell short? To me it looks more like the risk aversion is much to high for a real recovery. And then another 45% might be destroyed. But this only the future will say.
GreatYves&Fxnewbie,
I would like to add some thoughts to your comments
1-Basically GreatYves,you are saying that things should be valued according to man hours work,taking into account the degree of skill of that man hour`s work(Doctor vs casher,etc)...And you are right,you can`t sell Rolls Royces to people earning 2$ per hour...But you can sell them if everybody in your district is a general surgeon or a politician
2-Fxnewbie adds both the same "degree of skill" perception and 2 new issues,first,scarcity,and second,government intervention...and you are very right,scarcity plays an important role in any pricing model..and we all know that government intervention can change price structures inmediately,like when requalifying land,etc.
3-My comment on the 45% wealth destruction issue is that...when,on man or woman`s
salaries basys,you need 40 years,and need to cross your fingers for below 2% interest to happen during those 40 years,to pay for a normal house...and everybody and his uncle is buying them on credit,increasing their prices like crazy...something is wrong...When people with small salaries of 1k Euros or 1.5 Euros can buy,entirely on credit a 400k Euros house..AND...the house is a small shit of just 80 square meters...AND..the bank says to them,why don`t you add a nice car(to be paid in 40 years),it is just 150 Euros more per month...AND...we will tell our valuation experts to be flexible...AND...this happens for years...it arrives one day were there are no more fools in the market,all the greatest fools have already bought(on credit),and the house of cards is crumbling..THEN,values take the road to fair valuation..usually,a 100 meters square house has been equivalent to 8/10 years salary of middle class...SO...the 80 square meters shit,should be worth around 6.5 to 8 years salary...for a country whose average earnings are 1500 euros a month,that is 127k-144k Euros..and that will be the historical fair value IMHO....Yes,a casher at the supermarket doesn`t earns per hour/week/month the same as a doctor or a lawyer,even doctors and lawyers ,strongly differ in their income among themselves,but by taking the average salary of a middle class individual,or that of a middle class married couple,we can see if valuations are fair or not...at least on average,and that is ALL we need.
So,my conclusion is that the 45% destruction of wealth has been just an adjustment to reality,and we are still far from reaching fair value...Another conclusion,and this coming from the world of cycles
...usually real estate cycles take an average of 6 to 8 years top to bottom,yes,it can be 4.5 years or it can be 10 years,but the average ranges,depending on country and period,on 6-8 years..so,If in the USA prices topped on 2007,and in Europe around 2008...you can expect a bottom around 2013/14+-1 year...most probably...and ALL the other markets are related to that,at least for the next couple of years.
Regards
S
...
"Replied?...I used your post as a convenience tool to post my thoughts"...as if you had any....
Simba
Hahahahha
Yeah,for you they may be indecipherable......Don`t worry,next life you are going to be normal(not intelligent,that would be impossible to promise,sorry).
Ciao
SYou are getting crazier & crazier with every post
Magic
"Replied?...I used your post as a convenience tool to post my thoughts"...as if you had any....
Hahahahha
Yeah,for you they may be indecipherable......Don`t worry,next life you are going to be normal(not intelligent,that would be impossible to promise,sorry).
Why are you still afraid of me?...Please post something about you,you are a fascinating subject,do not be afraid of my response,I will be moderated.
Ciao
S
Pava Loca
You are getting crazier & crazier with every post
To you,it may seem so,you know,the rest of mankind doesn`t agree with your perceptions...BUT..you already knew,you axxxxhole?...
Well,any comments on the subject`s thread issue,or just your usual stupidities?
S