You can look at this situation in a few ways. But the most sensible one IMO is that things always look the darkest before massive growth. Looking at
a chart of the Dow Jones Industrial Average from 1910-2010
shows these same periods
of massive growth and consolidations.
Some of these consolidations take decades and if everyone has already forgotten the 90's, the market can rise for a decade as well. 90-2000 saw
massive growth in this country with a lot of people becoming rich. The decade after that saw most of these morons lose all their money.
While I agree that massive spending needs to be cut, this recent crisis was like many others, this one just has a different name. The 70's was the
energy crisis, and 20-30 was rampant stock market speculation, and this one was the housing speculation market. This was about 2 things, IMO, and it
should be quite visible to most.
1) Our elected rep's allowed for this to happen because they are paid by financial service companies
2) Americans generally, having no regard for the past, forgot house prices can actually fall just like the stock market. Inflation adjusted graphs
will show this well through the decades. Now we are just back on the same sloping line.
was the first graph I could find. I am sure there are better. 8 / 10 people I
know down here in FL had more than 1 loan out on their house and just sucked up that equity.
That's JUST LIKE ME being an idiot and using my winnings (or extra obtained margin from winnings) in the FX market to double down on other exotic
pairs like GBP/JPY. Guess what, you blow up.
Anyway, what I am saying is this "crisis", like all others, is just the "housing/mortgage" one. That is all this is. Most just got caught with
their pants down. If you were smart you were well hedged, like some on this board. Black swan events do indeed happen.
is the definition, but I have been victim of these as well in financial markets.
Most have never felt that pain before in their gut, it hurts doesn't it?
We will be back, the USA that is, right back on top within too long because our military says so. I just feel bad for the next country that
"provokes" us. Just remember, everyone is always negative right at "6:00" and it is always hardest to buy at the bottom.
The richest people have bought at the bottom. One that comes to mind is Warren B. Best example there is of that really. And he showed that again
with Goldman Sachs in 2009.
Think about this as well. At the rate technology is advancing I am guessing that something big like the internet comes along at about every 20 years.
I am thinking when I am 45-50 something "revolutionary" like the internet will make its way through again. Too many smart people in the world and
you can't stop human ingenuity.
Too many negative people on this website sometimes, like it's contagious. So I am not lecturing you, rather just giving you something else to think
I know I rambled through a lot of things there but those are most of my (not well thought out) feelings.