posted on Mar, 11 2009 @ 05:44 AM
Originally posted by Ismail
Brilliant.... It's been the same here in europe ! The crisis is over ! The crisis is over. Yeah, right.
Although I agree with Ismail's assessment, the interesting thing about this is that stock price is one of "confidence". It has little to do with
the physical realisation of wealth. If people "think" that a stock will do well, then it will - not because the company necessarily has a great
future. The dot.com bubble exemplified this in recent years but economic history has shown time and time again that "belief" is everything.
I'm not talking about anything metaphysical - simply that the stock situation is a product of mismanagement and greed and can only be recovered by
the belief that it will get better and provide real returns.
The thing is, by constantly shouting "the crisis is over, the crisis is over", this actually helps to get the economy going again. Of course, this
kind of talk is aimed at the low level consumers to kick start the process - but it still works.
If we had more confidence in our governments and banks this would have a greater effect though. The man on the street knows that he his being lied to
but it still has a positive effect. The more that people "believe" that things are getting better, the more likely they are to relax to tend toward
the activity of spending.
Put it this way, when a patient is on a sick bed and capable of recovery, telling them that are going to get worse doesn't help them. Telling them
that they will get better aids their recovery. The same is true with the economy.
I'd rather hear people saying, "It'll get better" rather than "We're all f*cked, run for the hills". Confidence and belief is what is needed