GDP, M&A, EBITDA, P/E, NASDAQ, Econo-thread Part 11

[DanS]

This was a timely bump, AS. But I thought it was 850-900 for the S&P at the time...

Colon: Thanks for the links. Looks like a hit and miss proposition. This question was brought up by some press reports stating that about 18% of the Japanese economy was devoted to construction ( ), while only 9% of the American economy was devoted to this.

Given this, I wanted a better feel for the composition of the GDP numbers...

[Roland]

Didn't you know that the japanese government loves building bridges to nowhere ?

[Saras]

Originally posted by Roland
Didn't you know that the japanese government loves building bridges to nowhere ?

It's cultural, no? Like Seppuku, ikebana, origami and bushido

[Roland]

Indeed. Bridges to nowhere are to the japanese what funny accounting is to americans. Part of the national identity.

[Wraith]

--"This question was brought up by some press reports stating that about 18% of the Japanese economy was devoted to construction"

The Japanese government is, for some reason, convinced that construction projects are the way to end their rather lengthy recession. That it hasn't worked yet does nothing to stop them from trying, like most government projects.

Wraith
"Wherefore being all of one mind, we do highly resolve that government of the grafted by the grafter for the grafter shall not perish from the earth."
-- Abraham Lincoln as told by Mark Twain

[Roland]

Construction carries that myth. See US housing.

[Colonâ„¢]

Or the Hoover dam.

[Saras]

Originally posted by Colon
Or the Hoover dam.

or the Battlefield Medicine

(it is a Civ board, after all )

[Adam Smith]

Originally posted by Roland
Didn't you know that the japanese government loves building bridges to nowhere ?

Just south of Baltimore there is a big unfinished highway intersection with a sign saying "FUTURE" and an arrow pointing off to the right. Always wanted to take that exit......

[Saras]

bump

And now for some conspiracy theory:

Doesn't it seem odd that as soon as there are credible risks to the whole circle of beliefs crashing down there suddenly appear "positive" macro stats, stocks rally like there was no Enron/WC etc?

I mean, isn't there a Zurich Gnome plunge protection team ((C) Roland) ?

[Roland]

Maybe it was the PPT. But more likely it's some silly bulls with borrowed cash to burn.

I like bulls. They're bear market fuel.

[Adam Smith]

So speaks the uberbear

[Roland]

Amen.

[Dauphin]

Drunken ramblings

Apologies if this has been posted already but EBITDA reminded me of the mnemonic I heard today:


Earnings before I trick (the) dumb auditor.


GP, don't say I never contreibute to these damned threads.

[TCO]

One line in the next day, WSJ said something to the effect of "This shows the bad points of using EBITDA as a valuation metric. Maybe we should use free cash flow." Well...DUH!!!