Global Economic Recovery

The obituary of Mr. John C. Bogle, who transformed the investment industry, contained the following quote: "You get what you don't pay for. Costs matter." This is the underlying principle of "Forming an E 20 Group of Nations" and "Solving the Emerging Economic Crisis" Natural Resources are what Emerging Nations have to invest. That and the time and talent of their citizens. Emerging Nations should be circumspect about the cost of making these investments. This was the caveat about Emerging Nations doing business with The European Union (Germany/Merkel) and with the G 20. There is a steep cost to surrendering autonomy. A cost borne by Italy and Greece. Too many people act like global slowdowns are caused by Sunspots or meteor showers. Global slowdowns are nothing more than a retrenchment analogous to profit taking in the stock market investment paradigm: Buy low, sell high," When the global economy slows down to a level sufficient to trigger reinvestment, the reinvestment will occur and the global economy will rise.

This is not a global conspiracy.  This is the nature of the beast.
The metaphor.  We have an investor, Warren Buffet who heads up Berkshire Hathaway.  Their shares sell at $300,000.  This is too high for an average investor.  However, if there was a stock split: 1000 to 1, then someone holding one share of BH would now have 1000 shares each worth $300.  This is a more manageable level for investors.  This was not uncommon half a century ago.  The stocks become affordable, people invest, the stocks rise. The Global Cash Holdings (in Trillions of dollars) are waiting for the global economy to go low enough to where bargains are to be found enabling those with the money to invest, to purchase a greater share of what is available.  They can invest at a very large discount.  This, of course, is how a smaller number of people end up owning a larger segment of the global economy. This is another reason why Emerging Nations should form Economic Unions and a Union of Emerging Economic Unions.  And beware the cost. "You get what you don't pay for.  Costs matter." 
John C. Bogle. Sincerest regards,,
Slim.

If you find anything here to be helpful, please don't hesitate to send me a really tricked out Mac Book and to tuck a few dollars into the envelope along with the thank you note. Sincerely, Slim.

Bob Asken
Box 33
Pen Argyl, PA 18072
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