February 19

12:50 Murder on the Dance Floor

10:20 I recently wrote about the speculations on stock market and the difference between total "value" of a stock and the real or intrinsic value of that stock. I also remember relatively recently there has been an announcement saying Microsoft has passed the three trillion threshold.

Then it came the shocking news of the amount of fining of Trump in a civil lawsuit.

BTW it always puzzled me since the day i came to the US and saw the news about civil case of  OJ Simpson. I mean, the family has been awarded a large sum of money based on the claim he killed her though he was acquitted in the parallel criminal trial.

All civil lawsuits give money rewards for the damaged part. In the case of Trump, it was for the intentional super evaluation of his assets in order to get loans, and there is a name for it. Fraud. (though i don't see where the damage was for the State of New York).

Fraud is a crime. How come the prosecutor and the judge and us all can ignore the fact crimes have been committed?

Everybody knows. There is no sign of equality between the intrinsic value of a stock and the sum of the shares of that stock. I am not sure exactly what that intrinsic value means. Ok so it cannot be greater than assets. What is  the current value of the assets of Facebook (meat whatever)?

It is about the same value it went 20% up that day. So only 1/5 (or less) of its stock value is covered by assets. Same goes for Apple, google, Amazon, Nvidia, Tesla, Microsoft etc..

As you can see, the difference between assets (minus liabilities whatever) and the market value is what they call a bubble. Only the five the magnificent 7 mentioned above account for a seven trillion or more bubble.

So we can see stock market is no much different than a Ponzi scheme. People buy shares hoping they will go up and one day they could sell them to other people for a profit. It is called speculation. But it is all legal and institutionalized while Ponzi schemes are not.

But if tomorrow for some reason a large enough number of holders would decide to sell all at a time (probably) around 10% of any of the seven, the whole thing will come crumbling down (bubble will burst).

The opposite is happening in Japan. Do you know where the difference is coming from? All of your Toyotas and Hondas and Nissans and Subarus etc. etc. etc......