I love people who never pause to take what they are reading and their response into context of someone else’s vantage point. People who take very micro perspectives and use absolute examples – therefore statements like wealth is lost must be true in every sense. My point that wealth doesn’t just get sucked into a vacuum is something you can choose to take literally as well and apply it to everything. The world is not black and white all the time, perhaps you need to learn to see the gray. I’m not an idiot that doesn’t understand people lose money – and to the person losing money, that wealth is indeed lost and could possibly never be regained. It also doesn’t mean there are not others who profit from a person’s loss. Its an INCREDIBLY narrow perspective when looking at the BROADER marketplace. Like I said in my last post, this is not about 1 =1 or positives replace negatives. I give examples that someone’s loss “could” be someone else’s gain. The example of a home crumbling into dust – people profit off of others devastation. I hear traders talk ALL the time about how hurricanes, natural disasters, etc….although highly unpleasant to people suffering extensive tragedy, is actually great for trading and the market – volatility means opportunities for profit taking. Is this a horrible concept from a moral perspective, certainly, but does this mean profit taking stops? No. There are no absolute examples. My point is that wealth is often transferred, temporarily or not. You can take a very micro perspective about economics, or you can choose to take a macro one. This thread discusses the losses that are occurring in the subprime market. My examples point to the fact that unless the fund manager is a complete idiot, there aren’t too many funds or institutional investors that are long or short entirely in 1 position, 1 direction. YES – people are absolutely losing their pants in the subprime market, but there are also people out there making a killing. It does not equate 1 to 1 – I feel like I need to repeat myself because clearly my point is lost. People too often overlook the ability to make money betting the bears.
This is a forum where people post comments and their opinions – an opportunity for discussion. If we all had all the answers, we wouldn’t be here would we? I understand that this isn’t meant to be a novel or dissertation on perception of how the marketplace functions. I think in the future I’ll have to make sure I write DISCLAIMERS about my posts so that I don’t get attacked on comments taken so literally. I don’t write and explain everything in detail – sorry I don’t have that much time. The points I make are not necessarily my personal beliefs or opinions – they are perspectives.
I tend to find that people who call others idiots should apply the idiot test to themselves.
