Friday, October 24, 2008

OMECOMICS = Om's Economy

Dude, did you hear it?


My 1$ becomes 60 Cents in 5 months?

What you did you do idiot? Went to Vegas and put your dollar bill in 1 cent slots, played 4o cycles and lost?

No, Gambled in Stocks and Shares?

Stocks does not mean can be utilized for same value later on?

I know, i Used to hear a lot, put your money in stocks rather than banks? you will get better rates?

It will not matters, banks are getting closed or being sold, and stocks are going downhill for months?

How far it Will Go?

Lets see in face value of money in market?

What is Market Capital?
Its measurement of Economy.

What is Economy?
A measurement of money in form of cash/shares/goods/purchasing power.

What is value of Company?
Cash+number of shares * face value of single share +Any property.

What is property?
Anything that can be ultimately converted to money.

Now lets do our basic maths for 5 months ago and now?

*** The total market capitalization of all publicly traded companies in the world was about US$60 trillion in May 2008

(just to let you know some economy sizes US=$13.8 trillion, China=$6.9 trillion, Japan =US$4.5 trillion, India = $5.21 trillion(PPP) )

and in just 5 months in September 2008 it became US$40 trillion.

World has just lost about 20 trillion in 5 months. means it has lost the economy of US and China combined in just 5 months, the worlds largest and second largest economy.

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