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U.S. Financial Markets Have Become A Giant Mirage Built On A Foundation Of Fraud
The Economic Collapse Blog ^ | 04/17/2021 | Michael Snyder

Posted on 04/17/2021 1:03:56 PM PDT by SeekAndFind

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1 posted on 04/17/2021 1:03:56 PM PDT by SeekAndFind
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To: SeekAndFind

Is that as bad as Santa sitting on a throne of lies?


2 posted on 04/17/2021 1:08:27 PM PDT by BenLurkin (The above is not a statement of fact. It is either opinion, or satire. Or both.)
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To: SeekAndFind

Lots of pins hovering over many many bubbles........


3 posted on 04/17/2021 1:09:00 PM PDT by cranked
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To: SeekAndFind

ok so the SHTF. The question is when. The experts know as much as you and me.


4 posted on 04/17/2021 1:09:04 PM PDT by DIRTYSECRET (`)
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To: DIRTYSECRET

Someday the author will be right once, that is still far worse than a broken clock


5 posted on 04/17/2021 1:10:28 PM PDT by algore
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To: SeekAndFind

Fear porn to sell a book.


6 posted on 04/17/2021 1:10:45 PM PDT by Fido969 ( Sc)
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To: DIRTYSECRET

Do we convert our money to cash? What if the bubble bursts and they don’t have it. I do know this-it plays into the hands of he communists , especially those at home.


7 posted on 04/17/2021 1:11:17 PM PDT by DIRTYSECRET (`)
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To: SeekAndFind

The money was free so nobody cares.

They’re playing Monopoly with Monopoly Money.


8 posted on 04/17/2021 1:13:20 PM PDT by Mariner (War Criminal #18)
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To: SeekAndFind
I wonder what he is going to say on:"The Economic Collapse Blog"
9 posted on 04/17/2021 1:15:12 PM PDT by tlozo
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To: SeekAndFind

“a small deli in rural New Jersey can literally be valued at more than 100 million dollars”

Does this author not understand free markets, or are they deliberately misleading? Things are worth what someone is willing to pay for them.

It seems this deli has shares that are owned by the owner and his family. One of them transfered a handful at $9 a share to someone else.

That doesn’t mean anyone is willing to pay $100 million for all of them.

As with most lightly traded shares, the stock value doesn’t have much to do with the value of the firm.


10 posted on 04/17/2021 1:15:48 PM PDT by Renfrew
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To: DIRTYSECRET

Can someone explain to me how a company like “Your Hometown Deli” even gets listed on a stock exchange? Never in my life could I imagine mom and pops being listed. What’s to stop me from doing this, selling and making a killing?


11 posted on 04/17/2021 1:20:12 PM PDT by RBW in PA
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To: SeekAndFind

My IRA earned 10K last month but I might put it all in cash with this crazy run up.


12 posted on 04/17/2021 1:22:28 PM PDT by dainbramaged ( Zulus to the Southwest - thousands of 'em.)
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To: SeekAndFind
Investors have lost all touch with reality

animal spirits can lead to bubbles:

euphoria + decreased risk aversion + herd mentality + excessive optimism = irrational exuberance

13 posted on 04/17/2021 1:25:13 PM PDT by mjp ((pro-{God, reality, reason, egoism, individualism, natural rights, limited government, capitalism}))
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To: SeekAndFind

“This bubble will inevitably pop, and those that did not sell at the top of the market will be kicking themselve”

Trading halted.

Bailout

Government pensions. Union pensions retirements


14 posted on 04/17/2021 1:25:35 PM PDT by Varsity Flight ( "War by the prophesies set before you." I Timothy 1:18)
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To: Renfrew

Generally yes....things are worth what someone will pay. But not always...that’s the point of the story. If you buy controlling interest in this company / deli for $50,000,100, then what? Liquidate it - building, land equipment, stock on the shelves, and any other assets, etc., subtract liabilities......do you think it’s worth $50-mil? I doubt it. Price is what you pay, value is what you get. It’s only truly worth what it’s worth.


15 posted on 04/17/2021 1:27:52 PM PDT by wny ( s)
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To: SeekAndFind

“The Paulsboro, New Jersey-based Your Hometown Deli is the sole location for Hometown International, which has an eye-popping market value despite totaling $35,748 in sales in the last two years combined, according to securities filings.”

Sadly the IRS is now going to pay these guys a visit.

Nobody can keep a deli open on $18k in sales per year. It’s easily 10X that, minimum.

To boot, to be on the NYSE, you have to follow a bunch of accounting rules.

I suspect deliberate fraud here.


16 posted on 04/17/2021 1:27:54 PM PDT by Mariner (War Criminal #18)
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To: wny

Intrinsic value is the coin of the realm.

Why do you think Bill Gates is the largest owner of farmland in the US?


17 posted on 04/17/2021 1:29:57 PM PDT by Mariner (War Criminal #18)
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To: SeekAndFind

A few extreme example misses the point. Is the stock market overvalued? Based on historical P/E ratios - yes. However - adjusted for ZIRP and Federal reserve pumping trillions into the system and the federal government pumping trillions...it’s not overvalued at all. Same with real estate - and unlikely last time the average credit score is close to 800 and most homes are being bought with all cash or 30-40% down. In a normal market, this author would be right, but thanks to the actions of the Fed Gov and Fed Res, we’re looking at real asset elevated inflation right now. Yes, there will be bubbles like Dogecoin and the deli mentioned, but most investors are not investing in them - but Apple, Microsoft, Walmart, Amazon, P&G, Hilton, cash flowing real estate, etc.


18 posted on 04/17/2021 1:38:57 PM PDT by rb22982 ( )
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To: SeekAndFind

Today, Coinbase has 56 million registered users and processes a trading volume of $335 billion per quarter.

Not small potatoes


19 posted on 04/17/2021 1:43:44 PM PDT by aMorePerfectUnion (I'd rather be anecdotally alive than scientifically dead...)
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To: SeekAndFind

Hi.

I just don’t know...

Savings accounts? No.

CDs? No.

Bonds, maybe?

Real estate at 3% mort rates, maybe?

Gold, maybe?

Commodities, maybe?

See, I don’t know anything either.

5.56mm


20 posted on 04/17/2021 1:44:29 PM PDT by M Kehoe (Quid Pro Joe and the Ho ain't my president.)
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