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originally posted by: toysforadults
a reply to: olaru12
welp, your assets are probably going to depreciate because for the time being the market will continue to rise, eventually if you wait long enough it'll work out for ya but for now your losing some gains by jumping to early
it's good to always be positioned against the market with a certain % of your portfolio from what I've read
originally posted by: toysforadults
a reply to: olaru12
considering we have a very anti small business government currently nationwide and our government has all but given up trust busting and has been bailing the big businesses out for years yeah of course it's not working
So am I off and just being overly pessimistic?
originally posted by: SkeptiSchism
a reply to: Teikiatsu
We had a severe depression in 1920-21 that was actually worse in terms of a collapse in GDP than the depression following the stock market crash in 1929. The reason you don't hear about it and the reason it was so short was because of the policies our government adhered to, basically free market policies.
They allowed the market to discount the mal-invested debts. As credit collapses economic activity collapses, but it clears out (through bankruptcy) the unpayable debts that are not productive. Conversely the depression following the 1929 stock market was prolonged by government policies because they didn't allow the market to clear out all the non-performing debt.
We need a market clearing depression, and if the government allowed it to occur unimpeded it would be short, painful but after a couple years we'd be back to 6-7% GDP growth yoy. We haven't had that kind of growth since the 60s.
originally posted by: Edumakated
I think one of the things that will make this crash painful is the debt levels of consumers. Too much credit card debt. Underwater car loans. Not too mention the student loan bubble.
All I am telling folks is to make sure you get your sh*t in order while you can. Get rid of any debt. Save up some money. Diversify any investments. Try to live frugally.
originally posted by: SkeptiSchism
a reply to: Teikiatsu
We had a severe depression in 1920-21 that was actually worse in terms of a collapse in GDP than the depression following the stock market crash in 1929. The reason you don't hear about it and the reason it was so short was because of the policies our government adhered to, basically free market policies.
They allowed the market to discount the mal-invested debts. As credit collapses economic activity collapses, but it clears out (through bankruptcy) the unpayable debts that are not productive. Conversely the depression following the 1929 stock market was prolonged by government policies because they didn't allow the market to clear out all the non-performing debt.
We need a market clearing depression, and if the government allowed it to occur unimpeded it would be short, painful but after a couple years we'd be back to 6-7% GDP growth yoy. We haven't had that kind of growth since the 60s.