80 years later, this isn't '29
again
So why not now?
Market crashes occur in the wake of extreme informational disequilibriums, which is a fancy way of saying big surprises. If a lot of people are
expecting a crash, ipso facto it can't happen.
Though it may seem as if major surprises happen all the time, that's not exactly true for modern securities markets. Thanks to 24/7 news
broadcasting, social networking, international commodity exchanges, central bankers' powwows and Group of 20 meetings, so much is known about
business conditions, trade flows, interest rates and government policies today that price discovery -- the heart and soul of smoothly functioning
markets -- occurs around the clock.
I would have to disagree with this article. It seems they presume a lot of things about the economy and stock market. They persume that everybody has
a invested interest in seeing riseing values of the stock market and economy and no one would want to see them fail or lose value due to them losing
also in the proces, but there are ways people would gain by seeing these numbers drop and profit by them dropping. They also persume that they know
everything there is to know about the stock market and economy and nothing will slip by them unnoticed which is untrue. The stockmarket wouldn't be a
gamble if that was true and nobody would ever lose money but always make money when investing in either one. Isn't there a old wise tail out there a
fool thinks he knows everything but a wise man knows he doesn't ? A wise man knows his ignorance and doesn't fool himself into thinking he knows it
all. So I would say if the ptb think in the same fashion as the writer as this article we are in deep trouble. After all they don't even know where
all the bail out money is or even where the stimulus money went. I hope someone who reads this realises that this article is a path to the same road
as befor without even a detour from the next big failure in the stock market and the economy.
[mod edit: title - to remove URL]
[edit on 25-10-2009 by 12m8keall2c]
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reply to post by JBA2848
I would have to agree with you. And, yes, they ARE being very presumptuous aren't they? You can tell this was written by a market analyst who is high
on the knowledge that he knows all.
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