3 replies to this topic

[spielchekr]

First, leveraged dividends. In your dreams! I was struggling to write a thought about the chart below, and for the helluvit I Googled "leveraged dividends". This popped up, and said it far better than I was doing.

But the point I wanted to lead into was that the chart below is evidence that we no longer trade the real thing. Instead of "buying" and "selling", we are "borrowing" to short and cover. Apparently even an entire correction can be handled with credit now!

In one hand we have the supply of stock that just sits there accumulating dividends. In the other hand is the paper supply we trade around them without ever disturbing the real thing. Add up all of this supply (real and virtual), divide it by the dividends, and, er... well, has anybody really done that yet? But ******** who cares, all that paper makes dividends look handsome, makes those stocks worth more, makes traditional growth stocks tag along kicking and screaming, rinse, repeat, blah blah. The entire universe of stocks have effectively become growth stocks, thanks to credit. Snort that.

But I ask, how much farther can leverage stretch without dividends, since the so much growth has already been bundled into the value stocks?

Edited by spielchekr, 01 August 2007 - 07:52 PM.

[raleigh]

Plz don't tell our secrets to the Russians. Thx.

[youmast]

Plz don't tell our secrets to the Russians. Thx.

[Rogerdodger]

If the US could beat the Russians to the north pole, we might have a chance:

Russia claims North Pole with Arctic flag stunt
By Adrian Blomfield in Moscow 02/08/2007

Russia will fire the starting gun on the world's last colonial scramble today when a submarine plants a flag under the North Pole to symbolize the Kremlin's claim to the Arctic and its vast energy resources.

The area is believed to have up to 10 billion barrels of oil.

The Kremlin has long believed the territory belonged to Russia - it was marked as such on Soviet maps from the 1920s.

But in 1997, Russia ratified the United Nations Convention on the Laws of the Sea, which limits the five nations on the Arctic Ocean Russia, Norway, Canada, the United States (through Alaska) and Denmark (through Greenland) to 200 miles of territorial waters.

Even so, the development has galvanized other Arctic nations into action. Denmark is to submit its own claim and Canada has announced it will build eight armed ships capable of cutting through the ice.

(Did I read that correctly? Canada going to war over oil?)

Edited by Rogerdodger, 01 August 2007 - 11:45 PM.