Quote:
Originally Posted by directfiesta
You have part of the answer...
Also, with less or no credit available ( the banks one ...), less new dollars printed...So the value is less diluted...
Just think of a company...100 shares each worth $100.00 each ( 10 000.00 total value ) ...
Then the company decides to bring in a new partner at a cost of $5000.00, payable in new shares ...
Company must emit another 100 shares, bringing the value down to $50.00 per share....
Dilution ....
|
While there may be some truth to what you are saying that is not what is happening now. The central banks are injecting unprecedented amounts of liquidity into the markets now which will bite us all in the ass in the form of inflation and/or higher taxes.
Worth reading...
http://www.financialsense.com/Market...2008/1001.html