tag:blogger.com,1999:blog-5524682876220396502.post5863721255561555353..comments2024-03-27T06:56:10.255+00:00Comments on Broad Oak Magazine: A dumb questionUnknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5524682876220396502.post-84129695312689360032014-08-05T08:10:00.552+01:002014-08-05T08:10:00.552+01:00Thanks for taking the trouble, M.
Quibbles/obser...Thanks for taking the trouble, M. <br /><br />Quibbles/observations: <br /><br />1. It's not percentage change, though you could analyse it that way.<br /><br />2. Yahoo's graph stretches the first decade, so the incline should be a bit steeper there.<br /><br />3. In a non-inflationary financial universe, stocks would rise at the expense of something else, and would eventually have to reach a ceiling, wouldn't they?<br /><br />I suspect the "new normal" or "new paradigm" is based on:<br /><br />(a) monetary inflation/QE<br />(b) the repeal of legislation designed to prevent banks from gambling with depositors' money<br />(c) the explosion in derivatives<br />(d) high-frequency trading<br /><br />- and I fear that the gyrations of the last decade - 50% drop in the Dow, twice (so far) - are signs of "economic weirding", akin to the "global weirding" of the climate.Sackersonhttps://www.blogger.com/profile/17284329249862764601noreply@blogger.comtag:blogger.com,1999:blog-5524682876220396502.post-82837737032833594272014-08-05T07:20:30.530+01:002014-08-05T07:20:30.530+01:00You can't compare percentage change with a lin...You can't compare percentage change with a linear scale.<br /><br />Same chart with a log scale:<br /><br />http://i60.tinypic.com/20pspba.pnga dhttps://www.blogger.com/profile/16338499087238378758noreply@blogger.comtag:blogger.com,1999:blog-5524682876220396502.post-36076974143537241192014-08-05T01:02:29.151+01:002014-08-05T01:02:29.151+01:00My take? Computers and satellite communication mad...My take? Computers and satellite communication made the movement of money faster, introducing more short-term variance. The system will eventually oscillate out of control.Paddingtonhttps://www.blogger.com/profile/07952088638231881617noreply@blogger.com