The New York & NASDAQ Stock Exchanges
The capitalization of New York Stock Exchange on January 14, 2000 was estimated at more than $10 trillion when the Dow Jones Industrial Average reached an all time high of 11,722, so the 34% loss in value since then represents another $3.4 trillion loss to American "investors".
The capitalization of the Nasdaq was estimated at $5 trillion on March 10, 2000 when it reached an all time high of 5,048, so the 76% loss in value since then represents a $3.8 trillion loss to American "investors".
This $7.2 trillion loss seems to be getting no coverage at all in the "news media", even though it completely wiped out any remnant of American "personal saving", which had already gone in the red by $8.5 billion in 2000. This is the date on which the US became the only industrialized nation in the world with a negative personal saving rate.
Subtracting this $7.2 trillion loss from the negative personal saving of 2000 gives us a negative $7,208.5 trillion in personal saving.
The DJIA all time high of 11,722 was 3.9 times higher than the high of 2,999.75 reached in 1990, so 74.4% or $7.44 trillion of this $10 trillion in "stock value" was created in only 10 years. Similarly, the NASDAQ all time high of 5,048 was ten times higher than it was in 1990, at 500, so 90% or $4.5 trillion of this $5 trillion was created in only 10 years. With 100 million households in the US, this creation of almost $12 trillion in "wealth" represented an average "asset" of $120,000 per household, compared to the $72,000 loss per household in just the last two years.
Table No. 689 of the 2001 US Statistical Abstract shows that financial assets in the US more than doubled in 10 years, increasing from $15 trillion in 1990 to $33.7 trillion in 2000, an $18.7 trillion increase. But two thirds of that increase was due solely to this inexplicible increase in the value of stocks way beyond any reasonable P & E level, and already almost half of that increase was lost in the recent NYSE and NASDAQ crash.
From: Info
Junkie (bondrock@ifx.net)
Date: 1999/12/28 |
http://biz.yahoo.com/prnews/991227/dc_nasdaq__1.html (December 27, 5:33 pm Eastern Time) (Is this any kind of "economic impact"?) Nasdaq to Freeze Certain Data From December 27, 1999 Through January 3, 2000 as Part of Y2K Plan WASHINGTON, Dec. 27 /PRNewswire/ -- The Nasdaq Stock Market� today announced as part of Nasdaq's Y2K implementation plan there will be a freeze on making data changes for equity and debt issues and market participants from Monday, December 27, 1999 through January 3, 2000. ``This data freeze will be imposed to minimize the activity in the system during the brief transition period to the new year,'' said Gregor S. Bailar, Executive Vice President and Chief Information Officer of the National Association of Securities Dealers (NASD) -- parent of The Nasdaq Stock Market. ``For us, there's no such thing as being over-prepared.'' The following updates will not be done during the freeze time frame: New IPOs on Nasdaq or OTCBB New additions (seasoned securities) to Nasdaq Name changes for Nasdaq, OTCBB, non-OTCBB, MFQS and FIPS securities Symbol changes for Nasdaq, OTCBB, non-OTCBB, MFQS and FIPS securities Addition to MFQS Additions to OTCBB -- 211 filings Additions to non-OTCBB trade reporting file Name and/or symbol changes for existing NASD members Name and/or symbol changes for clearing firms or agents Name and/or symbol changes for ECNs Additions of new NASD members Additions of new Nasdaq or OTCBB market makers N-100 and F-100 component changes SOES tier changes TSO changes (including N-100) Time & Sales updates The following updates will be permitted. * Deletions (retirements) from Nasdaq, OTCBB, non-OTCBB, MFQS and FIPS which result from a merger, exchange listing, etc. * Additions to OTCBB resulting from Nasdaq de-listings * Additions of a previously existing non-OTCBB security for which a member actually has a trade to report. * Deletions of NASD members * Deletions of Nasdaq or OTCBB market makers and excused withdrawals * Ex-dividend and ex-interest dates * Additions of an IPO to the OTC file for trade reporting purposes * Registration of market makers in a Nasdaq security * Reg M and Passive Market Making updates The Nasdaq Stock Market lists nearly 5,000 companies, has the largest dollar volume of trades of any financial market, and trades ore shares per day than any other U.S. market. Current market capitalization is $4.5 trillion. Nasdaq is a subsidiary of the NASD, the largest securities- industry, self-regulatory organization in the United States. For more information about Nasdaq, visit the Nasdaq Web site at www.nasdaq.com or the Nasdaq Newsroom(SM) at www.nasdaqnews.com. SOURCE: Nasdaq Stock Market, Inc.
From: Grinch
(oldnasty@mindspring.com)
Date: 2000-08-31 07:36:28 PST |
On Thu, 31 Aug 2000 11:04:00 GMT, galliformes@webtv.net wrote: >In article <96nrqsslnvhkj97nmgp6ffcnda05mg3thj@4ax.com>, > oldnasty@mindspring.com wrote: >> On Thu, 31 Aug 2000 03:49:03 GMT, galliformes@webtv.net wrote: >> >> >Margin debt >> >on the NYSE went from $140.1 billion in'98 to $$228.5 billion one year later? >> >How can this be reassuring? >> >> Margin debt is 1% of stock market capitalization. >> >> How can that be scare anyone? >> > So total capitalization on the NYSE would be around $22.8 trillion? The NYSE isn't "the stock market". The stock market's capitalization is over $16 trillion and margin debt at its peak approached all the way up near 1.5% of that (wow) but has since gone back down. Have your sources informed you of its fall as they did of its rise? Before trying to pick nits, read my other post giving the real numbers on household wealth and national savings. After that, if you are still picking nits with anyone other than Greider and his friends who've been scaring you with all the "debt bomb" talk, then you aren't sincere.
From: Grinch
(oldnasty@mindspring.com)
Date: 1998/11/23 |
"sunny" <sunnylw@hotmail.com> wrote: >What about the largest stock exchange in Japan? Sorry, I don't have time to >check the past postings, could you explain how that's related to our >discussions here? Thanks. Sure. A little thread history: Back in the beginning a few people were reasonably discussing the potential effect on the Japanese banks of the Nikkei dropping below 14,000, considering how the banks include stock shares in capital. Fatherm, who had recently arrived, loudly announced it would have no effect at all on the Japanese because they have $25 trillion in savings and the Tokyo stock exchange is capitalized only at $300 billion. I posted the capitalization of the Tokyo exchange as reported by the Tokyo exchange: -- [Grinch wrote...] Try $2.03 trillion as of the close of trading Thursday. Source: Tokyo Stock Exchange, http://www.tse.or.jp/STATISTICS/e01.html --- Fatherm demonstrated his mastery of sources by rejecting this number. [fatherm wrote....] You obviously did not go to the source, which is the cite I posted yesterday (Emerging Stock Markets Factbook, 1997, International Finance Corporation, pg.24.) If you take a close look at your source above, you will understand the discrepancy. Both sources report that the Tokyo Stock Exchange is the largest stock exchange in Japan, and it is capitalized at $321 billion. The entire stock market capitalization of Japan is $3,088 billion when the other 8 stock exchanges in Japan are added. -- After which followed this exchange.... [fatherm wrote:] oldnasty@mindspring.com wrote: > Do you *ever* stop to think about numbers you post? > > You say the *largest* stock exhange in Japan is capitalized at only > $300 billion. But the Japanese stock markets are capitalized at $3 > trillion. Seem odd? > > So how many *smaller* stock markets must Japan have for them to be > capitalized at $2.7 trillion total? Ever heard of any of them? I know them all. There are 8 stock markets besides the Tokyo Stock Exchange. Do you you want a list of them? They contain the other $2.7 Trillion. The Nikkei is just one indicator in one stock market which represents only 10% of the total stock market capitalization in Japan. But even this amount is less than one seventh of the total amount in their Personal Savings accounts. I am sorry that I confused you with the facts. Should I stick to popular anecdotes to keep from confusing you? Should I just agree with you that a drop in the Nikkei is meaningful in some way? What can I do to please you, Grinch, if noticing some factual evidence which disputes your view of the world makes you so uncomfortable? ----- In response to which, Patrick SUSUPPLY@aol.com chipped in with..... .. fathersmanifesto@usa.net, rapidly becoming the most amusing poster on sci.econ, tells us: >> >The Tokyo Stock Exchange is the largest stock exchange in Japan, and it is >> >capitalized at $321 billion. The entire stock market capitalization of >> > Japan is $3,088 billion. and: >There are 8 stock markets besides the Tokyo Stock Exchange. >Do you you want a list of them? They contain the other $2.7 Trillion. The >Nikkei is just one indicator in one stock market which represents only 10% of >the total stock market capitalization A little fourth-grade arithmetic gives us 1/9=11.1%. What this means (please read very slowly) is that the Nikkei cannot be both 10% of total Japanese stock market capitalization and the largest stock market. The largest has to be higher than 11.1% Which is why Grinch is asking you: >> Do you *ever* stop to think about numbers you post? Not penetrating? How about this: If 8 stock markets have a capitalization of $2,767 billion (your $2.7 trillion, actually 2.8) that is an average of $345.9 billion. Again very slowly, $345.9 billion is a bigger number than $321 billion (your figure for the Nikkei--the "largest stock exchange in Japan"). Is it necessary to explain what an average is? I await your reply. Patrick ------------- In response to which fathrem demonstratred a unique combination of intellectual integrity and rigorous logic by admitting that he had indeed made a mistake -- but *not* in the number he had posted for the capitalization of the Tokyo exchange, rather in his prior belief that it was the largest stock exchange in Japan. fatehermamifosto wrote: >The total stock market capitalization of >Japan's stock markets is $3 trillion, with the Tokyo Stock Exchange being the >best known (but as you point out, not the largest) After which he was of course asked many times the likes of ... >> Now please, *please*, tell us the name of the the *largest* Japanese >> stock market, which is less well known than the Tokyo exchange But his only answer has been ... >The reference was already posted. So we're still waiting. Well, I'm still waiting. I'm the only one left from then unless anybody is lurking, and I don't know why anyone would be. Of course, the point is that if he can't even figure out what is the largest stock exchange in Japan, how can anyone believe his personal rewriting of the Japanese national accounts? And if he rejects the Tokyo stock exchange as the source for the market cap of the Tokyo stock exchange, "refuting" it with a number that's off by 90% that he allegedly read in the "Emerging Stock Markets Factbook, 1997, International Finance Corporation, pg. 24." , how can one believe *any* number he posts or *any* source he cites? So as long as he stays here I'm just going to keep asking him: What's the largest stock exchange in Japan? Regards
Modified Saturday, April 18, 2009
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