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Post by chaobender482 on Sept 15, 2008 14:28:50 GMT -5
Your thoughts on this issue, right now some of you are not that big on the Stock Market, but it is the source that might have our economy looking at a severe Rescission or possible Depression in the looms of what will be the times of the 1990s and 1930s, which in turn those years were also the times we have a war going on, this my friends gives us a reason why the economy is looking very bad at the moment, I'd say it is, and well I just wanted to add your thoughts to this among the concerns of this.
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Yakuza
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Post by Yakuza on Sept 15, 2008 16:02:48 GMT -5
To me, the stock market is the most pure example of how luck can favor anyone.
A lot of people dont know it, but the economy is not controlled by the president. However, his presence is a very adverse effect. I'm only saying this because I know Bush WILL come up in this topic. Look, it already has! I win this round.
The market is just... it's one of those variables of life that everyone needs to be reached on one massive level. Like recycling. If everyone understood exactly what was happening, and how to deal with it, then we could be fine. However, media speculations over possible collapses just causes people to lose their minds. It doesnt help that some of us have grandparents who lived through depressions and tell us stories about how they had to eat everything that even had a speck of meat on it. In a fast paced, excessive-consumer driven world, some people would just think it is barbaric to do something like that. So they rip all the money they have out of the bank, throw it in a shoebox and cram it under their bed. Not the smartest moves.
And it's not like people would help other people invest wisely, but they want money for their cause.
I mean lets face it, Bush could have pulled a Clinton and did NOTHING foreign and the economy would be booming, and if the next president presided over a recession, we would hate him on the same level.
In possible depression times, we need someone to blame.
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Grandi
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Post by Grandi on Sept 15, 2008 16:17:08 GMT -5
The stock market isn't based on luck at all. It's based on a multitude of variables about demand, supply, popularity, security, loans, unemployment, company image, scandals, national security, etc. Usually the safer stocks are those based upon utilities that everyone will use no matter what such as electricity, water, gas and to an extent food.
Playing the stock market for a profit by extensive buying and selling to try to anticipate a stocks viability is risky yes, but it's not based on luck. People analyze a company and determine how it's going to fair in today's market. For example, my grandfather bought Wendy's stock for $3 a share and ever since then it has gone up to $70ish a share and split a couple times. He made quite the profit. However he bought Sears Holding stock (a combination of Sears and K-mart) at $130 a share and he's made an almost negligible profit. Then he bought Starbucks and the stock went down, therefore he lost money.
A general depression is where so many company's stock on the DOW Jones, NASDAQ or S&P 500 drop below expected profits. This usually isn't caused by regular economic situations but huge upsets such as the sub-prime market fiasco and terrorists threats. Along with lack of consumer faith in the government to regulate the market.
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Yakuza
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I've Got A Restrainin' Order Against Satan's Daughter
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Post by Yakuza on Sept 15, 2008 16:22:19 GMT -5
The stock market isn't based on luck at all. It's based on a multitude of variables about demand, supply, popularity, security, loans, unemployment, company image, scandals, national security, etc. Usually the safer stocks are those based upon utilities that everyone will use no matter what such as electricity, water, gas and to an extent food. Playing the stock market for a profit by extensive buying and selling to try to anticipate a stocks viability is risky yes, but it's not based on luck. People analyze a company and determine how it's going to fair in today's market. For example, my grandfather bought Wendy's stock for $3 a share and ever since then it has gone up to $70ish a share and split a couple times. He made quite the profit. However he bought Sears Holding stock (a combination of Sears and K-mart) at $130 a share and he's made an almost negligible profit. Then he bought Starbucks and the stock went down, therefore he lost money. A general depression is where so many company's stock on the DOW Jones, NASDAQ or S&P 500 drop below expected profits. This usually isn't caused by regular economic situations but huge upsets such as the sub-prime market fiasco and terrorists threats. Along with lack of consumer faith in the government to regulate the market. I was actually referring to the luck of the president who presides over the recessions and expansions. Because as you said in your last sentence, if people dont believe in the big wigs, they will go crazy. And that lack of faith kills when its multiplied by 300 million. I really dont think the market is in too much danger yet... Although I have been wrong before... Several... several times...
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Post by goten0040 on Sept 15, 2008 20:58:38 GMT -5
I'm not extremely worried about the Stock Market. I could be wrong, but judging by how our economy works now, a depression wouldn't destroy us the way it did back in '29. After all, back in the 80's, there was a crash. The economy bounced right back up the next day. The economy was built in order to prevent a crash like the on in '29 from destroying us. Though I don't really care for how our economy is run, I don't think the Stock Market is too much to worry about at the moment.
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Horyo
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Post by Horyo on Sept 15, 2008 22:33:05 GMT -5
The Depression/Recessions are just a looming cycle in my view: as Yakuza said above, people become fearful, withdraw and rush out. The banks then have no money to give back or loan out causing many to be shut down, etc. etc. (thank you Econ!)
And yea, the President can't really ensure that the Stocks are booming. I'm actually quite fearful of an oncoming Depression (or even Recession)
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asian malaysian
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Post by asian malaysian on Sept 17, 2008 1:28:16 GMT -5
I dont think many here are old enough to fully appreciate what a full blown recession feels like let alone a depression. Watching your lives savings that you worked for vanish into thin air is a very scary thing when youre not young or have kids. Sure, you could say its cyclic; so are hurricanes. The thing is when either one is headed straight at you, you better run for cover.
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Post by GROOONK'D on Sept 18, 2008 20:43:35 GMT -5
If you think these recession is ANYTHING like the stock market crash of the 20s you are wrong.
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Post by goten0040 on Sept 18, 2008 21:08:55 GMT -5
Not to mention the economy has been reformed since then so a depression like the one in the 20's wouldn't devastate the country.
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asian malaysian
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Post by asian malaysian on Sept 18, 2008 21:20:08 GMT -5
If you think these recession is ANYTHING like the stock market crash of the 20s you are wrong. Never said it was. I just think that anyone who ho-hums a full blown recession either wasnt born when the last one hit or was still living off their folks at the time. It is something very serious to worry about.
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o8jedi
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Post by o8jedi on Sept 29, 2008 15:57:38 GMT -5
This is just breaking news: The Dow Jones Industrial Average just suffered the single-greatest points loss in history, falling around 777 points[/b] in light of the $700 billion "bailout" bill failing in the House.
If anybody needs me, I'm going to my room to lay down in the fetal position and cry myself to sleep.
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Post by chaobender482 on Sept 29, 2008 16:31:20 GMT -5
Well here is the bare facts, in order to bring back the economy, we'd have to be in a depression, as well as our currency to be devalued and usless, which of course will mean that a new currency that Canada and Mexico with the help of the UN to form the "Amero", in other words the US Economy pretty much will fail in the future because of the war and lack of foreign policy. that bush destroyed.
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Post by zukofan22 on Sept 29, 2008 18:52:57 GMT -5
Worst that happens: We're in a recession.
Of course, the Media's pulling a "ZOMGZ!!! THIS IS LIKE WHAT HAPPENED IN THE 1920s!!!!!!!!!!!!" thing.
Does no one remember what happened to cause the Great Depression?
We're not entering The Great Depression II.
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asian malaysian
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Post by asian malaysian on Sept 29, 2008 19:31:11 GMT -5
Everyone said the bail out was necessary and that still hasnt changed but when it came down to the vote, most legislators didnt have the guts to go back and explain that to their constituencies during an election years. Congressed choked, plain and simple, and will have to face the same problem again in the day or weeks to come. Dont be surprised if the bill goes up to an even trillion by then. When people start losing their homes and their life savings, it wont be any comfort to them to say "Oh well, at least it wasnt as bad as the Great Depression."
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Post by Consonant*** on Sept 29, 2008 21:23:44 GMT -5
This is just breaking news: The Dow Jones Industrial Average just suffered the single-greatest points loss in history, falling around 777 points[/b] in light of the $700 billion "bailout" bill failing in the House. If anybody needs me, I'm going to my room to lay down in the fetal position and cry myself to sleep.[/quote] But it's not that bad when looking at percentages. In other news, context comprehension is at an all time low. This is an devastating blow to the economy. Wachovia's value dropped almost NINETY PERCENT. I don't know, however, if this is irreversible, at least now we have time to develop a stronger plan.
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