New Stock Market Terms

[JonInNY]

CEO --Chief Embezzlement Officer.

CFO-- Corporate Fraud Officer.

BULL MARKET -- A random market movement causing an investor to mistake himself for a financial genius.

VALUE INVESTING -- The art of buying low and selling lower.

P/E RATIO -- The percentage of investors wetting their pants as the market keeps crashing.

BROKER -- What I am compared to a year ago.

STANDARD & POOR -- Your life in a nutshell.

STOCK ANALYST -- Idiot who just downgraded your stock.

FINANCIAL PLANNER -- A guy whose phone has been disconnected.

MARKET CORRECTION -- The day after you buy stocks.

CASH FLOW-- The movement your money makes as it disappears down the toilet.

YAHOO -- What you yell after selling it to some poor sucker for $240 per share.

WINDOWS -- What you jump out of when you're the sucker who bought Yahoo @ $240 per share.

INSTITUTIONAL INVESTOR -- Past year investor who's now locked up in a nuthouse.

PROFIT -- An archaic word no longer in use.

[DefensiveCarry.com]

[msgt/ret]

Those really fit the current stock market situation.

[tinkerinWstuff]

P/E index - I love it!!

[retsupt99]

None of the terms refer to the use of any vasoline?

[Miggy]

Yes, it is called BAILOUT

[jeephipwr]

I think I suffered the P/E ratio when I looked at my IRA and 401k balances,

[ccw9mm]

Welcome to the "new economy".

The Internet and the New Economy

Alan S. Blinder

J u n e 2 0 0 0

no. 60

1775 Massachusetts Ave. N.W. • Washington, DC 20036-2188 • Tel: 202-797-6105 • Brookings - Quality. Independence. Impact.

The generally superior macroeconomic performance of recent years—especially the more favorable combination of low inflation, low unemployment, and the apparent acceleration of productivity growth—is commonly attributed to the effects of information technology (IT) in general, and of the Internet in particular. This paper examines the evidence for and against the following four propositions:

• Productivity growth in the U.S. economy has speeded up.
• Advances in IT are the driving force behind this acceleration in productivity.
• Because of faster productivity growth, the U.S. economy can now sustain a higher
growth rate without suffering from higher inflation.
• The Federal Reserve should therefore pursue a looser monetary policy than it would with slower productivity growth.

In brief, are we in a New Economy?

It is impossible to make a definitive judgement until sufficient time passes to gain some historical perspective, but some evidence points to a recent acceleration of productivity growth—and therefore, of sustainable Gross Domestic Product (GDP) growth—at about the time the Internet was diffusing rapidly through the economy. At minimum, that’s an interesting coincidence.

... and so on.

Yeah. It's "new," alright.

Those "candlestick" charts you're used to reading? If the markets keep crashing, the only thing the candlesticks would be good for is to set fire to the charts ... only, they're not real. Welcome to a virtual world. Really.