Friday, May 04, 2007

I hope you will cash in your stocks...

...and pay off your credit card debts soon - while you still can - because you certainly aren't making any money with them. Meanwhile, the usurers are certainly making money off of you. So it's time to face reality.

Minyanville: Economy
May 03, 2007 1:14 pm
The Dow's Money Illusion
Scott Reamer

"...The new all-time highs in the Dow now being registered are a form of money illusion – the denominator has changed, in this case the value of the USD. Why? Because of massive, record credit growth over the last seven years. In real money (gold), in commodity terms (CRB), and heck even in other fiat currency terms (Euro, Swiss franc), the DOW is nowhere near its 2000 peak. The Dow priced in gold after all is down 56% from its all time peak in 1999; the S&P 500 priced in CRB index terms is down 37%. Heck, the DOW priced in Swiss franc and Euro terms is down 21% and 26% respectively from its 2000 peak. And of course the NDX is down much more in real terms against almost anything you care to price it in..."

So while your broker is laughing all the way to the bank, along with your credit card masters, and you think you have made a fortune in stocks in the last 7 years - guess what? You actually have less than when you started, class. You are poorer than you were 7 years ago - and over half of the money you spent buying stocks has really vanished into the thin air from which it came. If you sold every bit of stock you have and went shopping with it, you'd only be able to buy less then half the things you could have bought with that money 7 years ago.

Welcome to the world of illusion.

Of course, your broker doesn't want you to know that. He or she will show you nice charts in US Dollars making a pretty picture of an overall climb up the scale.

But it's a lie.

They have robbed you.

And you let them.

So now is the time to stop, while stopping the bleeding red ink is still an option. If you have stocks, sell enough of them to get yourself out of debt completely. Then if there's any left over, consider it "gambling" money - because that's what it is. You took a gamble when you bought the stocks that they would be "worth" more than when you bought them at a later date. However, you've taken a bath on them. They're "worth" much less. You lost the gamble. Time to fold.

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