45% world's wealth destroyed - page 8
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Good Reading
GreatYves&Fxnewbie,
I would like to add some thoughts to your comments
1-Basically GreatYves,you are saying that things should be valued according to man hours work,taking into account the degree of skill of that man hour`s work(Doctor vs casher,etc)...And you are right,you can`t sell Rolls Royces to people earning 2$ per hour...But you can sell them if everybody in your district is a general surgeon or a politician
2-Fxnewbie adds both the same "degree of skill" perception and 2 new issues,first,scarcity,and second,government intervention...and you are very right,scarcity plays an important role in any pricing model..and we all know that government intervention can change price structures inmediately,like when requalifying land,etc.
3-My comment on the 45% wealth destruction issue is that...when,on man or woman`s
salaries basys,you need 40 years,and need to cross your fingers for below 2% interest to happen during those 40 years,to pay for a normal house...and everybody and his uncle is buying them on credit,increasing their prices like crazy...something is wrong...When people with small salaries of 1k Euros or 1.5 Euros can buy,entirely on credit a 400k Euros house..AND...the house is a small shit of just 80 square meters...AND..the bank says to them,why don`t you add a nice car(to be paid in 40 years),it is just 150 Euros more per month...AND...we will tell our valuation experts to be flexible...AND...this happens for years...it arrives one day were there are no more fools in the market,all the greatest fools have already bought(on credit),and the house of cards is crumbling..THEN,values take the road to fair valuation..usually,a 100 meters square house has been equivalent to 8/10 years salary of middle class...SO...the 80 square meters shit,should be worth around 6.5 to 8 years salary...for a country whose average earnings are 1500 euros a month,that is 127k-144k Euros..and that will be the historical fair value IMHO....Yes,a casher at the supermarket doesn`t earns per hour/week/month the same as a doctor or a lawyer,even doctors and lawyers ,strongly differ in their income among themselves,but by taking the average salary of a middle class individual,or that of a middle class married couple,we can see if valuations are fair or not...at least on average,and that is ALL we need.
So,my conclusion is that the 45% destruction of wealth has been just an adjustment to reality,and we are still far from reaching fair value...Another conclusion,and this coming from the world of cycles
...usually real estate cycles take an average of 6 to 8 years top to bottom,yes,it can be 4.5 years or it can be 10 years,but the average ranges,depending on country and period,on 6-8 years..so,If in the USA prices topped on 2007,and in Europe around 2008...you can expect a bottom around 2013/14+-1 year...most probably...and ALL the other markets are related to that,at least for the next couple of years.
Regards
SJust want say thanks to people that are contributing to this thread! It has caused me to read more about the theories that drive valuation and the markets. I have several more of Hayeks books on order. And looking in many other directions to learn more. A strange time we live in that losing 212k jobs in the US last month can be seen as positive by the markets, at least for now.
The dynamics of this thread have me also googling lions and hyenas and learning of their relation to one another. Very interesting indeed. Some vids out there depicting this and it isn't a pretty sight when the male lion finally gets pissed and puts the smack down.
HS
I would be interested in learning about other good books to read on this topic if there are any suggestions
fast
Just want say thanks to people that are contributing to this thread! It has caused me to read more about the theories that drive valuation and the markets. I have several more of Hayeks books on order. And looking in many other directions to learn more. A strange time we live in that losing 212k jobs in the US last month can be seen as positive by the markets, at least for now.
The dynamics of this thread have me also googling lions and hyenas and learning of their relation to one another. Very interesting indeed. Some vids out there depicting this and it isn't a pretty sight when the male lion finally gets pissed and puts the smack down.
HSHi Savage,
Fast..the bastard is fast when pissed,man,looks unbelievable,and how does he catches the hind leg of the Hyena to break her equilibrium and then...Hyena Kaputt..yes,it is a pretty sight,if you stop to think about it,,I understand you,but I prefer for the Hyena to suffer slowly ...this particular Hyena you are talking about is stupid and slow so,not much to play with ...I have to invent games like ,ok I am not gonna hurt you, for it to keep playing ...Sometimes I feel guilty for being so cruel with an innocent being,but then I realize I am just cleaning the forum from trash ideas and behaviours
I gave my word to the small hyena that I was not going to hurt it too much,so,please,with all my respect,try to avoid comments that can make it run away from the thread
...man,slow is better 
...the hyena we are talking about is gonna enjoy it slow and deep,as usual 
Thanks for your kind words,let`s keep in touch....I will send you a PM with links to several illustrative books.
Regards
S
Simba...
"axxxxhole?"...just proves my point...are you hurt?...did I threw you off balance?...you can take that lion off your avatar...you little weasel...
xxx
"axxxxhole?"...just proves my point...are you hurt?...did I threw you off balance?...you can take that lion off your avatar...you little weasel...
I was trying to be kind to you
..You know,first time in your life somebody does this to you,etc..you don`t deserve it ...but,who cares,Christmas is Christmas,even in September 
..so,enjoy and relax.
Still no reply?..Ohhh,I told you I wasn`t going to hurt you too much..just try to combine something resembling a thought,we won`t laugh,or,at least,we will try not to do so in public.
You can start to put that Hyena in yours...;)..Hey,np,everybody already knows ....and they don`t care,so,do it,and be sincere for once.
Ciao
S
"we won`t laugh"..."everybody already knows"...and you are the spokesman for whom exactly?...or are "they"..and "we" your imaginary friends...the only once you have?...
The $750 Trillion was not deposited into worldwide banks because banks do not have $750 Trillion deposits.
The $750 Trillion was not invested into stock markets, real estate, gold and commodities.
The $750 Trillion was not invested into world GDP because world GDP is $50 Trillion to $100 Trillion (estimated).
So where did 45% wealth or $750 trillion go?. It has been destroyed.45% of the wealth, 750 trillion has gone into my pocket
thought
"we won`t laugh"..."everybody already knows"...and you are the spokesman for whom exactly?...or are "they"..and "we" your imaginary friends...the only once you have?...
I told you to just try to combine something resembling a thought...At least you tried
S
I don't care about 45% world's wealth destroyed stuff .
I love reading responses to it , it is some fine entertainment going
on in here and I would like to thank you guys for keeping it alive .
Whatever you type in , it's always a good read
Don't hold back , it's always interesting what other people think .
Thank you.
Sincerely,
ChampionFx
...all powerfool Simba:)...
I told you to just try to combine something resembling a thought...At least you tried
Up to this point no one knew that you are not all that smart...
Aren't you guys having enough FUN yet?
ENJOY!
fxcruiser