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To: scottlang
The economy is not just based on logic, it has a very large emotional componene. If people FEEL threatened they will act threatened. The majority of people I have talked to do feel that their livelyhoods are in peril. They are looking for someon to do something about it. And so far Bush has done very little

We really do not have a major disagreement but economic policy should be based on sound logic. The emotional factor will send people to seek any "solution" I am in favor of solutions that at least have a chance of working. The emotional factor will saddle us with a Democrat tyrant and the purists who have their ideology which is not rooted in American Constitutional principles but rather in European Libertarianism would have us forego sound rational decision making in favor of theri religously held dogma.

I have come up with a 13 point plan which would be a start towards addressing the issues.

513 posted on 08/26/2003 6:10:14 AM PDT by harpseal (Stay well - Stay safe - Stay armed - Yorktown)
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To: harpseal
Much of Wall Street is emotionality though. I get completely baffled when a company is expected to earn 25 cents profit for the quarter, but it ends up earning say 22 cents a share in profit, and the company's stock drops 25% in one day. What is the logic in that?

A company, for one quarter, generated 88 million in profit. We expected it to be 100 million this quarter. Let's devalue the company by a quarter. There is no logic there. It's emotionality.

Even though it was a dumb Hollywood movie, I loved the scene in Trading Places, where Eddie Murphy told the head honcho to hold off buying pork belly futures, because people were desperate, it was christmas, and they would start selling for lower, because they wanted extra money to buy their kids GI joes with the kung fu grips, and a nice present for their wife so they would have sex.

Sometimes, it really is that simple. Wall Street has turned into the lottery and gambling for many people. Many people who would have played the horses, or bet the Knicks are betting Eli Lilly instead. The same kind of pathology often applies. I would bet that the majority of day traders bet on sports as well.

522 posted on 08/26/2003 6:37:59 AM PDT by dogbyte12
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