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2013-14 Shelby GT500
THE FUTURE COLLECTIBILITY AND VALUE OF OUR 2013/2014 SHELBY GT500s...
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<blockquote data-quote="LazyBird" data-source="post: 13571926" data-attributes="member: 152279"><p>I enjoyed your post, but I'm a bit puzzled by this part.</p><p> </p><p>For one thing, in my opinion, it is not so much an increase in the money supply that is driving the stock market higher; rather, it is the FED purchasing bonds and Treasurys and mortgage-backed securities, thereby keeping interest rates artificially low and making the stock market the preferable place for investors -- and unfortunately, even savers -- who want to stay ahead of inflation. The FED is printing money and buying debt, not stocks.</p><p> </p><p>Second, when stocks rise, it creates a "wealth effect" (of which I'm sure you're familiar), which makes people feel wealthier (perhaps more than they really are), in which case they spend money, which creates demand and consumption, which creates productivity, and more productivity creates ... well, you know where I'm going. I'm not fluent in the monetarist school, but where I come from, more productivity creates more wealth, regardless of whether the FED prints more money.</p><p> </p><p>Third, you claim that it is impossible for stocks to rise with a finite money supply. That may be true in today's environment. But might it also be true that, in a finite state, the value of stocks, and for that matter, the Dollar (as a store of value) increase in value relative to productivity and therefore purchasing power? Didn't the stock market -- and the U.S. GDP -- increase prior to the creation of the FED and prior to it inflating the economy? </p><p> </p><p>As for the future value of my GT500? As with my house, I couldn't care less. I plan to die in one or the other.</p><p> </p><p>Rick</p></blockquote><p></p>
[QUOTE="LazyBird, post: 13571926, member: 152279"] I enjoyed your post, but I'm a bit puzzled by this part. For one thing, in my opinion, it is not so much an increase in the money supply that is driving the stock market higher; rather, it is the FED purchasing bonds and Treasurys and mortgage-backed securities, thereby keeping interest rates artificially low and making the stock market the preferable place for investors -- and unfortunately, even savers -- who want to stay ahead of inflation. The FED is printing money and buying debt, not stocks. Second, when stocks rise, it creates a "wealth effect" (of which I'm sure you're familiar), which makes people feel wealthier (perhaps more than they really are), in which case they spend money, which creates demand and consumption, which creates productivity, and more productivity creates ... well, you know where I'm going. I'm not fluent in the monetarist school, but where I come from, more productivity creates more wealth, regardless of whether the FED prints more money. Third, you claim that it is impossible for stocks to rise with a finite money supply. That may be true in today's environment. But might it also be true that, in a finite state, the value of stocks, and for that matter, the Dollar (as a store of value) increase in value relative to productivity and therefore purchasing power? Didn't the stock market -- and the U.S. GDP -- increase prior to the creation of the FED and prior to it inflating the economy? As for the future value of my GT500? As with my house, I couldn't care less. I plan to die in one or the other. Rick [/QUOTE]
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2013-14 Shelby GT500
THE FUTURE COLLECTIBILITY AND VALUE OF OUR 2013/2014 SHELBY GT500s...
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