PatriotsReign

We now know...and EVERYONE agrees that "Bubbles" are the cause of the deep recession we are now in. That being said, there is evidence that current gov't programs have over-inflated the stock markets (again!) and we may be in for another big fall.

Ask yourselves why & how AIG's stock could possibly be so high when they are barely surviving on gov't bailout money. The business/investment community has seemingly jumped for joy over the "perception" that we have escaped a depression.

Greed still simmers world-wide and the lack of patience in dumping money back in stocks is a reflection of that greed.

There is a better explanation of what's causing the latest stock bubble on CNN/Money.

Stocks: The latest Fed bubble - Aug. 11, 2009

BelichickFan

The problem is you can get 50 qualified experts and get 50 very varied answers. I am SO tempted to move all my 401K to a nice, safe, low risk, low reward place and "start over" in the stock market with a secure piece and put all new money in the market. But you hate to lose the next big jump too. As Shmessy likes to say, it's best to allocate it correctly and just leave it but with the losses we've all had it's tempting to try to wait it out.

Anyway, you can find experts saying this is just a bear market rally and you can find experts saying we'll be back to 14K within two years.

PatriotsReign

You're right, experts don't often agree when it comes to economics. But the facts we know are that the financial industry is still very weak, housing is still in a deep slump and consumer spending remains at record declines. These are the 3 biggest causes of this recession.

I think we are once again experiencing irrational exuberance. There is no rational reason to believe that the markets will get back to their all-time highs within 2 years.

BelichickFan

I agree with you but this guy :

CNBC Stock Blog ? Investor Sees Dow 14,000 in 18 Months ? CNBC.com Market News - CNBC Stock Blog - CNBC.com

"Riley said he is targeting 14,000 on the Dow in the next 18 months. He recommended the following sectors for investors."

Sees 14K within 18 months. So who knows.

PatriotsReign

Hey, irrational exhuberance can last a long time...maybe even all the way to 14,000!

But for our economy to truly begin to recover, the problems MUST be solved first. The only way to a healthy economy is for a solid foundation to be in place. Right now we don't even have a foundation to build upon.

But, hey...who knows BF. Recovery "could" be just around the corner. If it is, I'll be very skeptical. I'd rather see the causal issues worked out first.

Real World

That guy's on crack.

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"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897

PatriotsReign

Haven't seen a post from you in a while. Is work keeping you busy enough? BTW...When is your wedding date?

Mabeyitstrue

Fixed it for you


Just wait and see you twit, things are going to get a lot better and your gonna have a big plate of crow to eat.......

efin98

I take offense at that and don't believe that is something that should be joked about(brother is a crack addict, hits a nerve)

He's been drinking too much cool aid or been hanging out in too high of an altitude...unrealistic projections there.

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"As long as we have Belichick, I always think that we're going to be just fine."...Tom Brady, in reference to his coach.

“It is what it is, but it ain’t what you think.”...Brandon Spikes

Real World

You haven't seen me around much, cuz I got married in July, and just got back from the honeymoon Monday night.

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To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

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"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897