View Single Post
  #108 (permalink)  
Old 05-09-2005
kathaksung kathaksung is offline
Governor

 
Member Since: Feb 2001
Location: San Jose, Ca. U.S.A.
Posts: 524

   
Re: See US politics From another angle .

3. The stock price depends on the amount of investment fund.

If monthly trade stock is 100 shares, ($1.00 each) the investment fund in that month is $110, then the share price will be 1.10 each, it's a 10% rising market. If there is only $90 fund go into the market, then the price will be $0.90 each. A falling of 10%.

For decades, the index of US stock market went upwards. It created a fake phenominen that if you invest in long term, (e.g. 40 years) you got a good return. That's the justification someone like Bush used.

But if you know the above principle(a rising market dependent on increasing investment fund) you must know that it was built up artificially. The US stock market growing up at public's pension fund. At first, Different pension fund push up the stock market. Then financial group created mutual fund in 1970s(?) which put your savings into the stock market. When it was not enough they invented "IRA" in 1980s which push another amount of retirement fund into the stock market. Further more, in 1990s, government allowed 401(k) to access the stock market. Wave after wave, Americans' retirement money were pushed into that gambling market. It became a big bubble.

But money was harvested by company and winners already. What public held are only a bunch of papers. When people want to cash their 40 years long savings, (they think they have a bunch of treasures, but that's only a paper value) Who has the ability to take over that big bubble? It needs a lot of new investment fund to support it.

That's why when government exhausted your money by "pension fund investment", "IRA", "401(k)" the last exit is your social security
__________________
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.
Reply With Quote