Ignoring the Leassons of 1929: Stockmarket related

[stevenaa]

http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/IgnoringTheLessonsOf1929.aspx


The economic and financial landscape of 2007 bears striking similarities to 1929. Back then, there were large, unregulated pool operators and other insiders constantly muscling the tape in whatever direction they chose. The public, too, was involved, thinking the country was experiencing a new era. Meanwhile, business began deteriorating in the spring of 1929, though the partying in stocks lasted until the fall.

[Mass_SkinsFan]

Who knows, a Second Great Depression might be just what this country needs to get our collective heads out of our asses.

Maybe 10-15 years of abject poverty and starvation on a national basis would teach people the lesson that the only person on this planet they can count on to look out for their best interests is THEM; not others of the Government; and that the only person whose best interest they SHOULD be interested in is their own.

Additionally, it might be an effective way to reduce the population of those people completely and totally unable to fend for themselves. Kind of Darwinian in nature.

[PleaseBlitz]

Who knows, a Second Great Depression might be just what this country needs to get our collective heads out of our asses.

Maybe 10-15 years of abject poverty and starvation on a national basis would teach people the lesson that the only person on this planet they can count on to look out for their best interests is THEM; not others of the Government; and that the only person whose best interest they SHOULD be interested in is their own.

Additionally, it might be an effective way to reduce the population of those people completely and totally unable to fend for themselves. Kind of Darwinian in nature.


:laugh: Thank GOD you work for the phone company and not the Fed.

[SkinInsite]

Pff who cares about the stockmarket, straight cash homey.

[jbooma]

There are measures in place for that not to happen again :)

[jbooma]

Who knows, a Second Great Depression might be just what this country needs to get our collective heads out of our asses.

Maybe 10-15 years of abject poverty and starvation on a national basis would teach people the lesson that the only person on this planet they can count on to look out for their best interests is THEM; not others of the Government; and that the only person whose best interest they SHOULD be interested in is their own.

Additionally, it might be an effective way to reduce the population of those people completely and totally unable to fend for themselves. Kind of Darwinian in nature.

wow tell us how you really feel :doh:

[#98QBKiller]

Not these days. There are hundereds of thousands more stocks than there were during the pre-Depression era, not to mention there was no SEC to regulate the stock market before it crashed or FDIC to protect people's money when everyone panicked and ran to the banks. These things were created intentionally to protect us from another crash in the market.

Also, much of the Stock Market Crash can be blamed on sketchy people inflating the prices of even sketchier stocks and selling them to idiots that they lured in to their "pools," (see SEC).

[endzone_dave]

I think if you're investing in solid companies the risk is slight. P/E ratios seem ok and I think the SEC does try hard to ensure companies aren't lying on their financial statements.

I do believe there is stock price manipulation and the SEC turns a blind eye to this in many cases. Every so often I end up with a stock that is obviously getting manipulated but that timely upgrade or plug from Cramer eventually occurs and the stock goes back up.

[Henry]

It's a cyclical thing. The market does crash every so often. And people do feel it.

We may be due for a crash soon. That wouldn't suprise me. Though I suspect it would feel more like 1987 than 1929.

[Predicto]

It's a cyclical thing. The market does crash every so often. And people do feel it.

We may be due for a crash soon. That wouldn't suprise me. Though I suspect it would feel more like 1987 than 1929.

Bingo. 1929 was a lot more than a stock market crash. It was a stock market crash followed by a government tutorial on what NOT to do when the stock market crashes.

[Riggo-toni]

Maybe 10-15 years of abject poverty and starvation on a national basis would teach people the lesson that the only person on this planet they can count on to look out for their best interests is THEM; not others of the Government;

Why would you think that - do you know anything of 20th century US history?? The Great Depression was the catalyst for the MASSIVE EXPANSION of the federal government - Why on earth would you think that another huge economic downturn would reduce people's dependency on the gov't. Hell, people want, expect, and even demand the gov't do something every time the price of gas goes up. If we had another depression, it would move the entire country towards full-blown socialism. It's a sad fact that very, very few people accept Reagan's belief that government isn't the answer to our economic problems, rather government is the problem.

[Tarhog]

It's a cyclical thing. The market does crash every so often. And people do feel it.

We may be due for a crash soon. That wouldn't suprise me. Though I suspect it would feel more like 1987 than 1929.


Thats called a 'buying opportunity' :)

[Riggo-toni]

Reasons there won't be another Great Depression:

1. More of the economy (unfortunately) is insulated from business cycles because it's the gov't. We've got more people working for Uncle Sam than in manufacturing.

2. Noone is going to be as stupid as Hoover and raise the top income tax from 30% to 66% during an economic downturn to balance the budget. A couple GOPers (Reagan and Bush I) were dumb enough to raise taxes during a recession, and the lesson was pretty clear.

3. Though the dot coms were close, the SEC disclosure rules prevent the proliferation of phony corps like the ones marketed by Joseph Kennedy.

[jbooma]

Why would you think that - do you know anything of 20th century US history?? The Great Depression was the catalyst for the MASSIVE EXPANSION of the federal government - Why on earth would you think that another huge economic downturn would reduce people's dependency on the gov't. Hell, people want, expect, and even demand the gov't do something every time the price of gas goes up. If we had another depression, it would move the entire country towards full-blown socialism. It's a sad fact that very, very few people accept Reagan's belief that government isn't the answer to our economic problems, rather government is the problem.


The sad thing is that is what Mass wants but doesn't realize it, nor can understand it completely.

[Darth Tater]

Why would you think that - do you know anything of 20th century US history?? The Great Depression was the catalyst for the MASSIVE EXPANSION of the federal government - Why on earth would you think that another huge economic downturn would reduce people's dependency on the gov't. Hell, people want, expect, and even demand the gov't do something every time the price of gas goes up. If we had another depression, it would move the entire country towards full-blown socialism. It's a sad fact that very, very few people accept Reagan's belief that government isn't the answer to our economic problems, rather government is the problem.
Its somewhat funny, since all depressions are solidly linked to government action while recovery has always been linked to getting government out of the way.

[Darth Tater]

The sad thing is that is what Mass wants but doesn't realize it, nor can understand it completely.

Sad thing is that is what most people want but don't realize it.