Tuesday, March 03, 2009

Reflections 9

The news today are about further deteriorating stock exchange indexes.

Dow Jones fell below 7000 points, breaking tech bubble low of 2002 sinking to the lowest level since something like 1996. But, honestly it is not scientifically right way to compare, when you looking that far away.First, as we all know there is an inherent inflation, which cumulates to quite a large percentage share along the years. Second, the Dow itself, it's composition is constantly changing. So, for instance, today there is only one company which was listed there initially - GE. A handfull of companies haven't been there in 1996. No Bank of America ( take this off and Dow could be higher), no Kraft Foods. And many others like Microsoft, Intel, AT&T joined in 1999. Another bunch joined in 1997, which is a boundary for our case. In short, it is a bit more complicated picture than just comparing "raw Dow numbers" on the graph. I'm not saying it is not falling :) I just don't know by how much exactly.
It would be laughable to see if the standard metre based in Paris, made of platinum iridium alloy, would somehow shortened due to numerous French revolutions :) It is obvious that such markers can not be taken seriously in any "precise" manner. It is also notwithstanding any serious critics speaking in pseudo scientific mumbo-jumbo language about very specific "resistance levels" for the same reason ( there are other reasons as well). Moreover it is also laughable to see Nobel laureates for economy. Either don't give Nobel for physics or make another Oscar equvalent for great PR achievment in economy. Meanwhile, we can only dream that our economic understanding would be defined in order similar to this : 1 metre defined as the distance travelled by light in free space in 1⁄299,792,458 of a second.

Sure, I know the difference between natural sciences, "unnatural" sciences, math, philosophy e.t.c. There is also Nobel for "peace" and Mother Teresa with Arafat sharing the same piece of honour. Sure, I know that too, but what can i do :) You ought to remember one thing, just one thing - Nobel invented dynamite. All the rest is history.

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