The Underclass

Has nobody else noticed the movement in the useless Dow Jones Industrial Index. This is getting dangerous, you cannot have such volatility. It is no wonder that people don't trust the market any more, its busted.

It would seem that at last people are beginning to understand that you can be invested in the right stock but the wrong market.

What everybody seems to have forgotten is the idea of contingent liability. Yes you may be in profit but there is an obligation which may exceed your profit. I am afraid to say that this is becoming almost meltdown.

You sell into a rising market and buy in a falling one, perverse logic I know, but historically it has worked. Only this time it is different there is no bottom.

The problem is that the same mistakes are being made. Asset prices must be allowed to fall, that means wages, as well as fixed assets. From an economic perspective people are no different, you are all wage slaves.

In his programme on class Prescott doesn't get it, there are the classes and then there is the underclass, be afraid, very afraid.