"dapperdobbs" <GeorgeCFL@[EMAIL PROTECTED]
> wrote
> I'm still waiting for you to say "30 to 1 leverage on
> those credit
> derivatives!" C'mon ... I know you can say it!:-)
Well sure. :-) I absolutely agree with your point that
leveraging has aggravated the problem "greatly." Though I
put the last word in quotation marks because it is hard to
say anything with precision here, regarding the precise
effects of the leveraging, and relative to the period around
1991, and just as the August 07 Fidelity re****t that you
cited points out.
The magnitudes of which you (and Fidelity's paper, etc.)
speak and other re****ts have me worried that this could be a
mother of a recession. Hopefully I will be eating my words
within a year. Whence I hope younger folks here and myself
will have under our belts one more period of serious market
correction to temper our thoughts on long term investing.
I do like that my IRA's reinvested dividends pick up more
shares at bargain prices.
> There were loans made
> to those who could not, it turns out, afford them.
snip for brevity but all points noted
I think there's also a nasty myth going around, promoted by
our government among others, that owning a home should be
everyone's goal. As has been much discussed here, renting is
often the better financial choice. Renting does not
necessarily mean having less square feet.
Still, I put a lot of blame on those calling themselves
"mathematicians" who participate in the financial industry.
Unfortunately I suspect too often they do so thinking they
can get rich quick through manipulation of numbers, when
studies attest otherwise.
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