> DJIA breaks into the 7,000's, lost 500
> points in one week.
> I don't own stocks what does that have to do
> with me?

> As we all know it's just an average of 30
> stocks. But it a
> barometer of the economy.

I always thought the stock market was only what the psychotic market thought the company was worth that day. Sometimes based on things as stupid as superstition (every year at a certain date the stock market dives because that's what happened back in '97).

The day to day value of stock does not reflect the performance of the underlying business. Over time, yes, but not day to day.

The stock market is just one form of investing.

A drop in stock prices could mean many different things - superstition, bad "crop report," CEO scandal, law suit threat, actual poor company performance, investors moving their money into other areas, etc.

Whether or not the CEO of Coke is found to have an affair or not, it does not have an impact on my decision to buy Coke and thus send more money to Coke.

One hundred thousand people may decide to take their money out of the stock market - causing a ripple and scare and price drop - because they want to buy into "gated" retirement communities. On one hand the stock drops while on the other hand a lot of money is now being spent on construction and that industry booms.

As we head into
> the depression
> everyone will participate in it, either
> directly or indirectly.

> Bill Gates will lose billions, lay of
> workers, he will participate.

He may lose money (paper money he never had in the bank in the first place) but whether he lays people off is something we cannot know for certain.

Some sales may drop... then again, he may also already have things in place to counteract this. So actual microsoft sales figures may hardly change at all.

> Your $200,000 home is now worth $125,000 you
> will participate.

And what if it is worth only half? If I own it and never intend to leave, then who cares? If I sell it to move into another house I bought, it will also be worth half. So I will pay less for it. - It's all relative.

> Your family members that can't find jobs
> will participate.

And what about those who do have jobs?

For that matter... what's with all the hypotheticals to make things look bad?

> We all are going to participate, don't feel
> like you are special
> and it will pass you by.

I may be effected by the recession... but that does not mean I will participate in it (change my spending habits, do nothing if business begins to fall off, etc). Or sit by and do nothing.

Lets face it... if every body decided to not participate in this recession, there would be no recession.

> No matter what party is in the White House
> they had nothing to
> do with this depression. Events don't change
> trends.

Events don't change trends... they compound and cause trends.

Michael Ross


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