thegreatcrash.com press release

Doug Henwood dhenwood at panix.com
Tue Jan 4 18:47:43 PST 2000


Jordan Hayes wrote:


>But "by my logic" we ought to see a bear market if a) there's a
>huge upward change in the supply of stock

The story for most of the last 20 years has been equity retirements, through takeovers & buybacks. Vast gobs of surplus value have been transferred to shareholders, who've done god knows what with it.


> and b) there's a great
>disincentive to give heaping gobs of cash to mutual fund managers
>whose job it is to buy stocks.

Yeah, people change their minds though.


> > Is it different now?
>
>I think we're in a supply/demand situation that we've never
>seen before, yes.

Why? Has the fundamental dynamic of capitalism been altered? Why should valuation and sentiment readings and all those traditional measures now be invalid? What's changed?

Doug



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