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2. Stock is no other than a piece of paper
2. Stock is no other than a piece of paper
The value of stock market is supported by continue coming of investment fund. One thing you should know the people who hold the stock is no other then hold a piece of paper. That's a bubble. When no money came, then the bubble will break up.
When you deposit 100 dollars in the bank, you are guaranteed to get that deposit back, plus interest.
When you buy one hundred dollars of shares of a company, you are told you probably get some dividend sometime if business is good. The dividend is not guaranteed. And you can not cash the stock with the company. Because they have spent it to pay rent, wage and equipment already. If you liquidate the company, most time you may get a negative asset. e.g. if it's Microsoft, what they left for you is a program of Windows. UA may have some airplanes. But they always come with a huge debt. What kind of asset do Kodak and McDonald have for the stock they issued? What you hold finally could be a piece of paper. What you hope is someone else would buy that paper from you to take over your potential loss. When people put all their retirement fund in stock market, they are sitting on a big bubble. All they hold is a bunch of paper. One day when people wake up and refuse to behave like a fool, then there will be a collapse of stock market.
What Bush does is to persuade people put their retirement fund into the market to take over the hot potatoes.
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If Feds call you and defame my message, it is a tactic of intimidation. They don't want people know the fact.
It also proves what I wrote are truth. They are afraid of it.
Last edited by kathaksung; 04-29-2005 at 03:59 PM.
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