Author Topic: More stock market collapse - Sept 1 (Read 1202 times)

Matthew · « **on:** September 01, 2015, 11:54:18 AM »

Collapse, from the Latin cuм "with" and lapsus "fall". When used as a prefix, cuм becomes com-, con-, col-, etc.

The main index, the DOW, is down 420 points as of this writing.

As I pointed out 6 or 7 years ago, during the Great Depression every day wasn't a down day on the Stock Market. There were quite a few rallies, even large ones lasting many weeks. But the general trend was, inexorably, downward.

There's no reason why history wouldn't repeat itself here.

Also, a large "record" up day is actually a symptom of severe, grave illness in the markets. It's part of how an unwinding or collapse happens: i.e., wild swings from day to day and week to week.

If things were REALLY ok, and REALLY normal, we'd be having boring days on the stock market -- every day. Not record drops OR rises.

And now you know "the rest of the story". The more you know. And now you know. Knowing is half the battle.

Matto · « **Reply #1 on:** September 01, 2015, 03:06:53 PM »

I wonder how the stock markets would be if everyone wasn't brainwashed into putting their retirement money into the stock market.

RomanCatholic1953 · « **Reply #2 on:** September 01, 2015, 10:10:53 PM »

Quote from: Matto

I wonder how the stock markets would be if everyone wasn't brainwashed into putting their retirement money into the stock market.

It is most likely the investment managers that invest money into
the stock market. They make money if your stocks go up or down.
They are not accountable for the bad decisions if your stocks go
down.
The stock markets are a casino no different than Las Vegas.
You are lucky to break even after the lost of value due to
inflation, and taxes.
Yes, I heard of people making lots of money due to the fact
they are their own investment managers, read the financial
news every day. Most small investors do not have the time
and trust their investment mangers until they lose their shirts.
And cases in which the investors do not realize that they lost
their shirts when it is to late.

Clemens Maria · « **Reply #3 on:** September 02, 2015, 05:07:33 PM »

Quote from: Matto

I wonder how the stock markets would be if everyone wasn't brainwashed into putting their retirement money into the stock market.

We aren't brainwashed. We have no alternative:

Quote from: David Stockman

This transfer of wealth continues, by the way, in the form of relentlessly low interest rates, and an ongoing war by the Fed on safe and stable investment tools such as savings accounts and low-risk bonds. Indeed, this is a deliberate policy to get people away from these safer investments, and to get them investing in more volatile and higher yield investments. The idea is that the Fed can somehow force bigger returns on these riskier investments, and this will lead to a wealth effect. People will then think they’re richer, and we can then spend ourselves into a recovery. This is a terrible doctrine, but that’s what rules Washington right now. It actively works against middle-class people who want to work and save and invest their money responsibly and conservatively.

cf. http://davidstockmanscontracorner.com/exposing-crony-capitalists/