On Mar 23, 11:40=A0am, kathy...@[EMAIL PROTECTED]
wrote:
> Igor... the Fed bailing out Bear was wrong... should have let the
> market deal with it, even if it would have made 1987 look like a cake
> walk... of which still can happen... and probably will... fer which is
> why myself, have sold off what wasn't my core holdings.
The problems is that NOTHING is sound right now.
And I do mean NOTHING.
The entire US economy has been based on debt for at least 20 years, as
a mechanism to hold some degree of order.
I've heard a lot of people yelling "Why did the lenders give out these
mortgages they knew would go bad?, or "Why did the irresponsible
borrowers go so far over their head?"
Answer: It was the only way they could continue in the mythology of
the "American Dream", as a means of retaining social order.
A shockingly low percentage of people can afford to live in many
American cities as things stand right now. And even _fewer_ can
actually afford to buy homes in these cities.
Now, unless you are actually proposing basically crackhouse-level
tenement halls for the poor to live in, you can see where this
unravels pretty quickly: Without any real benefit to their work, they
quickly come to the conclusion that the work holds no real value for
them either -- and, at that point, society begins to unravel. You're
seeing it in a lot of what people are doing...
Why bail out Bear Stearns? Societal order, if only for a few more
weeks. They go bad, then everything that they have "counterparty
risk" to goes bad, and it's a run on the banks within weeks, if not
days. Same principle.
Not that it's going to save anything -- you're now reading that 1/4 of
the Gen-X adult children of this country are now having to beg their
parents for money. Money, in most cases, that the parents do not
have.
The fact is simple: If you're born poor, you're going to stay poor
and there's very little that can be done about it because we've gone
into an economic (almost) caste system.
>=A0Lookin back since the 1970's, it's been the financial sector that has
ca=
used most
> of the problems within the market, coming up with new ways to trade
> the old & true... and it's been the old & true that has not only saved
> the market, yet revived it each and every time... investing today with
> anythin financial is like playing with fire, it's gonna burn ya...
> best to get with what has strong roots in America... what's plain and
> simple to understand... basic industries will get ya thru this...
> we'll leave the light on fer ya...
The problem this time, though,is that most of the "old and true" is no
longer American.
We don't have a manufacturing industry anymore -- our cars are **** --
most of our stuff is now made cheaper (and better!) overseas...
So what's going to save the market this time?
Mike
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