The Public Opinion Soapbox

Dave · Joined: 22 Oct 2007 Posts: 162

Is it me or have we defined the U.S. economy solely on the performance of the almighty stock market?

After all, as a publically traded company, the value of your stock only really detemines your borrowing power against any owned stock.

When you buy a share of IBM. you typically buy it from someone else who has a share they want to sell.

People buy & sell stock based solely by betting whether their stock will go up or down. True, that the companies true financial standing & future projected growth has an influence on this perception. Investors rely on market people to tell them which companies are doing well, might do well, or destined to fail.

So, we look at corporate reporting on profits & trends. These reports are written by the CFOs & CEOs. The same CFOs & CEOs whose income is tied to stock market performance. Is this a dangerous situation or am I the only one who sees the problem.

I would think that a sound economy would not be affected by someone saying the recession. If the morning stock market reported says the market will go into a sell off mode, it probably will.

Is our economy so weak and teetering that we must artificially prop up the market by cutting interst rates and pump money into market? The fed helped out market at the expense of our overall economy. Cutting the interest helped the market but sunk the dollar to record lows. China is considering moving away from the dollar to the stronger Euro. If they do, they will have the capacity to dump a trillion US dollars on the currency market which would doom the dollar and probably our economy.

The stock market is a risk. A gamble. We need to quit bailing out those that made a bad decision. We need for our corporations to focus on true growth and financial strength instead of focusing on the value of their stock. As it is, they import junk from China because it helps the bottom line today even though it will hurt down the road. What do the CEOs care - they'll make millions in stock options then leave the mess to others.

.45chel · Joined: 26 Oct 2007 Posts: 3093 Location: Chambersburg

I was trying to reserve this thread for people more knowledgeable than myself, but I think they're all scared of you, Dave.

Dave · Joined: 22 Oct 2007 Posts: 162

I thought I would get more response on this. I see similarities between the stock market & sports book.

I worked hard on my ATV impressions. I'm glad you appreciated them.

.45chel · Joined: 26 Oct 2007 Posts: 3093 Location: Chambersburg

Unbelievable · Joined: 23 Oct 2007 Posts: 19 Location: New Franklin

Dave -

I know next to nothing about the stock market, but can appreciate your post and the points you made. It gives me something to think about. Unfortunately, I cannot lend any opinion to the discussion other than that I agree with the need to stop dependence on foreign entities and allow our own people to make our goods. I know our country is too large at this point for total emancipation from foreign products, however, our all consuming need for 'junk' (i.e. fast food toys in the billions come to us from China - do our children need one more spinning Shrek head or Transformer paperweight?) has surpassed our common sense. Not sure when that happened, probably predates my 37 years on earth.

Oh...and I too enjoyed your ATV impersonations.
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It's not what you do once in a while, its what you do day in and day out that makes a difference!

AnonyMouse · Joined: 22 Oct 2007 Posts: 536

Dave -

I missed the ATV impression. Do it again...do it again!

.45chel · Joined: 26 Oct 2007 Posts: 3093 Location: Chambersburg

AnonyMouse,

Since I like you bunches and you considered me quote worthy here are some Dave snippets. They are in the Chambersburg section, Caledonia thread, beginning on the 4th page if you'd like to read them in context.

Posted: Thu Nov 08, 2007 10:33 am

AnonyMouse · Joined: 22 Oct 2007 Posts: 536

I love it! In the context of the thread it was even better!

Dave - I have a neighbor whose grandkids come visit and bring their ATVs - up and down the road, throwing dirt and stones, cutting across the corner of my property. Fortunately they only come for a weekend every other month or so, so it's tolerable. But I can imagine your pain. It would be enough to make any man come a little unhinged.