Owners of Greek stocks are discovering that their equity stakes aren’t as valuable as they believed. But for every seller there is a buyer… Sellers are losing money. Buyers believe they are getting a bargain.
Over the last 10,000 years, humans have tried two different kinds of “money.”
They began with exchanges based on credit – “You give me a chicken… I’ll pay you back later, maybe by helping you build a new wigwam.” When society became too large and extensive, they switched to gold and silver.
Outside of the big oil exporting countries and the US shale-oil business this big drop in prices is widely seen as good news.
Consumers fill their tanks at lower gas prices and have a few bucks left over – money that can be used to buy things. According to the current and conventional delusions of the economic profession, this leads to sustained higher economic growth, more jobs and a cure for impotence.
The yellow metal lost nearly 1.8% of its value on Friday. And the big precious-metals miner stocks ETF, GDX, plummeted 8.7%.
Meanwhile, Thanksgiving was a success in the Bonner household. In Maryland, tobacco barns are falling down faster than World War II veterans. Your correspondent had planned to try to rescue one of them – using the strong backs of his sons, two of their friends visiting from France and our regular weekend helper, Fernando from Honduras.