Asset Destruction or Capital Destruction is a phenomenon of the early 2000's, mainly started 2007 and lasted for ?? number of years. Since we are still in it and I don't have a crystal ball, I can't tell how many more years we are going to suffer. No, it does not involve any money burning, even though it does feel that way. Everywhere you look: stock equity, bonds and housing value are going down, down, down.. So what is there to do? For me, capital preservation and job preservation are key. My good friend, K, who is a financial guru would probably disagree with me. She has probably jumped back into the stock market and making kudos of $. Good hunting, K!Friday, January 23, 2009
Asset Destruction
Asset Destruction or Capital Destruction is a phenomenon of the early 2000's, mainly started 2007 and lasted for ?? number of years. Since we are still in it and I don't have a crystal ball, I can't tell how many more years we are going to suffer. No, it does not involve any money burning, even though it does feel that way. Everywhere you look: stock equity, bonds and housing value are going down, down, down.. So what is there to do? For me, capital preservation and job preservation are key. My good friend, K, who is a financial guru would probably disagree with me. She has probably jumped back into the stock market and making kudos of $. Good hunting, K!
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ReplyDeleteHi J, enjoy your view on asset destruction/networth preservation. Agree in all and especially capital preservation ... on the other hand, we need to pump some optimism too , no? Mass psychology of excessive pessimism could accelerate the momentum of asset destruction. Self actualization prophecy .. scary ! yikes! ! Vicious cycle for Obama admin to handle. Maybe it is good that we hit bottom fast and hopefully not too hard and then there is no way but up and pray very hard we do not "linger" for too long at the bottom. BTW have a very happy, healthy and peaceful Chinese New Year. Keep blogging : P K
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