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"Managers" cannot acquire and 'manage' businesses without capital, something that Americans have very little of since they refuse to actually work, or let others work. When Chinese firms convert their debt holdings, to equity of US firms, most of the management will be replaced by Chinese...

...yet our most educated can't afford to go on cruises, and can't afford homes, or any sort of 'luxuries' because they're perpetually on $25k/year post-docs, or unemployed.

Most US engineers are unemployed or underemployed anyways, with salaries that do not even provide a ROI on investment in education. Why go through the trouble of learning math and science if US businesses are just going to toss you out the door the minute you want to be paid a 'living wage'...

God (Allah, Buddha, etc.) help us if this so-called 'top talent' goes into something other than banking. Last thing we need collectively is for some bright and promising technology to be messed up through weak understanding over the science involved, and overoptimism in its application.

"top talent" doesn't nearly drive firms, like GS, into bankruptcy. Stuffing cash in one's mattress created more value than the boys over at GS, in the past few years. The performance of the (US/UK) banking sectors is an empirical example of how these employees really aren't so 'smart' at all.

Yeah GOOG produces *nothing* of value. They produce nothing's exportable. They derive practically no income from outside the United States. They're just a glorified financial firm.

I'd disagree. Most of those tech companies were producing products, or services that resulted in lasting wealth. Whereas, with the banks, most of them destroyed value by overpaying employees, running innefficient operations, and relying upon business models that were fundamentally flawed...

The rally might last, but in vastly depreciated dollars, of course.

Techies can sell you 10 hard drives and charge for more than 10, if they're integrated into a nice package with a RAID controller.. :) And at least, in that case, the sum of the parts has more value than the individual parts alone. Bankers can't do that..

Yeah, no kidding, any dumbshit can write loans and collect spreads. It takes real talent to work in the tech industry and produce a usable implementation of a new gadget. Congressmen tend to help their own kind, dumbshits.. Not the nerds they bullied in school in their youth.

It runs much deeper than that. Basically most R&D in the tech industry stopped after 2000. There is nothing left in the pipeline. Around the same time, the few IT or tech jobs remaining were 'technologist' roles, not engineering roles. Hundreds of thousands of EE's still unemployed today...

Pushing up stock values permits companies to raise equity funding to perform exactly the sort of business and infrastructure renewal that you talk about. Seriously, oil stocks trading at 4X earnings? That just implies that the oil industry is going to go out of business. The common person...

Yeah why own a company with a fundamentally flawed business model? Can't imagine 'earnings' would be any good...

The great decoupling has begun. Economies that are based on 'fluff', like the UK, will continue to see declining stock markets and declining currencies. Economies that actually produce goods of useful value will see nice increases. Like Germany. Isn't that how the world is supposed to...

Sure stocks can soar, but will the purchasing power in physical goods and services increase with your soaring stocks?

Oh boy... Public lending to private sector organizations that have consistently shown a pattern of destruction of capital? This can't end well...

Just buy a SPY index fund and hold it. As the recent episode has shown, even 2X leverage is by no means safe over the long term. You'll probably do better than 95% of the people who post on these boards.

If the unemployment were limited strictly to bankers, mortgage brokers, used investment salespeople ('brokers' and 'financial advisors'), used house salespeople ('realtors'), and the miscellaneous other professions that support them -- then I don't things would be bad for the economy at all...

Oh really? That's why they're digging up my backyard and the rest of Northern Canada as we speak, just to satisfy the whims of hedge funds? That's delusional, and commodity inventories remain at extremely low levels relative to world demand. Folks, its not like in 2001 when tech firms had...

Why do you think there's a downtrend ahead? What are you using to measure a downtrend, the USD$ value of stocks? Gold? Barrels of oil? Dollars of labour? Really, its all a matter of measurement. Measured against labour, the stock market has been in an epic bull run almost uninterrupted...