Deja Vu with the stock market and housing bubble.

[le roi]

Originally Posted by pknopp

I know exactly what he said. What I do not know is why he wasn't completely truthful.

If you think he wasn't truthful, then you don't know what he said.


I mean we can keep going around in circles but you are still obviously relying on secondhand info that you got from badly written articles.

[pknopp]

Originally Posted by le roi

If you think he wasn't truthful, then you don't know what he said.


I mean we can keep going around in circles but you are still obviously relying on secondhand info that you got from badly written articles.

I know what he said. The only thing he should have said was to answer when he was asked...."How do you plead, guilty or not guilty"?

[GregW]

Why should we try to punish a couple of people for a systemic problem. They did not cause the previous crash. They did not cause this downturn either.


In 2007-8 a tremendous number of investors shorted the market and made huge amounts of money. They had created a housing bubble and got out as it was crashing. Now it is 2016 and the same people are doing the same. This is the way speculative markets work. The winners of the previous bust take their money and step aside for a while until they can figure a way, usually involving government stimulus, to start another bubble. Then they short their way out of it 15 to 20 years later. This is the primary way a few make most of the money in any equities market. it is the way these things work despite any attempts to prevent the resulting "boom and bust" cycle.


All of this is completely dependent on getting unaware people to treat these markets as savings accounts instead of crooked casinos. This is encouraged by governments providing enough money so regular savings accounts actually, when inflation is considered, cost the saver money. The banks can borrow money at 0% interest and loan it out for 5% long term to 30% for credit card loans. No wonder people have invested in the stock market without paying any attention to the risk. This downturn is the result of the Big Speculators fleecing another generation of fools.

[pknopp]

All the Fed had to do was raise rates and the bubble never happens. Yes, you blame those who are put in positions of authority for not doing their job correctly.

The Fed started to raise rates and look at the markets crying over it even though it's the right thing to do. People want to complain about someone sitting on their butts all day getting a small welfare check, and I agree that something needs done there but then they will defend the guy sitting on his butt all day just shuffling papers to make millions of dollars at the expense of the little guy sitting at home.

Part of the reason the guy is sitting at home drawing welfare is because they other guy that is shuffling paper has created a system where the job he would have had has moved overseas.

I relate it to going to a baseball game. Inevitably by the later innings after a few beers you will get a few guys that start betting on everything. $5 the next pitch is a fly ball. $5 the next batter walks. etc. What happened is one guy bet more than he could afford to lose and then stood at the exit demanding money from everyone to cover his bad bets.

It was a huge mistake to bail the banks out. Yes we should blame those that did that. We should be running those that are allowing it to happen again out of town but our politics won't allow us to and what this all then boils down to is people not wanting to assign blame because now much of it falls into their laps.

[ContrarianEcon]

Originally Posted by pknopp

All the Fed had to do was raise rates and the bubble never happens.

All the FED does is blow bubbles.

[pknopp]

Originally Posted by ContrarianEcon

All the FED does is blow bubbles.

Unfortunately.

[ContrarianEcon]

Originally Posted by pknopp

Unfortunately.

yep and supply side economics transfers wealth from the middle to the top. Our fiscal policy has been a debt bubble from RR until now. And the gutting of our manufacturing base.

[TrexDigit]

Originally Posted by North_Pinellas_Guy

So what happened to all the promises of correcting conditions which lead to the last economic collapse?

Many moving parts. Specifics usually help.

Originally Posted by North_Pinellas_Guy

Watching the stock market crash, off near 3,000 from its high, and remembering how the so-called experts say never to panic....yet they are the ones panicking and selling off like crazy.

Listening to market 'experts' can be a great way to waste time.
I'd love to be able to see undisclosed trade activity.
Impressive you have that impossible access.

Originally Posted by North_Pinellas_Guy

So if the last stock market crash was due solely because of the last president, then the same thinking must apply to this president. Fair is fair.

To the economically-illiterate.... sure.
Good luck with that as sound, analytical policy approach.

Originally Posted by North_Pinellas_Guy

We were told, and foolish people believed, that rules were changed after the last economic implosion and now it won't happen again. Yet here we are again with a housing bubble building and a stock market crashing. Lesson learned - Never listen to political talking points and promises from either side. It's all B.S.

Lesson learned - Never waste time in market threads posted to P&OC.
There's usually a reason these don't show up in the "Investing" forum.