Stock exchange : back to the old good habits ....

Discussion in 'News / Current Events' started by Spear, Oct 16, 2009.

  1. Spear

    Spear
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    Seen on tv yesterday evening.

    " The Dow Jones passed the 10000 points ! We're back to the 2007 rate ! "

    Everyone applauses at Wall Street, In London, Paris ... in every stock exchange place.

    Then it comes to ask how it is possible to be back to such a great rate ?

    And you hear people a little annoyed, admitting that the investments are back to what they're the best : speculative investments.

    The reporter gets a few answers.

    - Do the banks lend more money to families and companies ?
    No.

    - How do they invest the money ?
    Speculation on short term.

    - Are we back to the pre-crisis uses ?
    Ahem ... in a way ... yes.

    - Is the market in phasis with real economy ?
    Ahem ... no, it's not the way things are going on ..? You know, speculation, mostly short term ...

    End.

    You know what ? I supported giving money to the banks, iwas glad it would help the economy to keep on and people to keep their jobs.

    And they're back to part of what led things to where they are.

    I know, when i go to the bank to get interest from money, i tell them " I want the highest rate ". I'm probably guilty too. I should say " I want an honest rate ".
     
  2. sag38

    sag38
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    No, you want the "communist" rate. There's no such thing as an honest rate unless of course you are speaking of one that is based in freedom without undo control or interference by the government. In fact, over time the stock market has proven to bring investors a steady increase of their investments. For those who remain in for the long haul they make money despite the down turns that naturally happen as a result of adjustments in the market. You can keep your "honest rate." I'll stick with what works.
     
  3. Spear

    Spear
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    Is it necessary to use that word as often as possible, at any occasion ? But as you mentioned it, I'm asking you : do you think i am a communist or have communist ideas ?

    It is true.

    Some time ago, the market was, let's say " more reasonable ". I don't think it's good to have an " artificial economy " based on speculation, deconnected from the real economy.
    Remember the " internet bubble ", and now " the subprimes ". We could avoid this if the market was more reasonable, and its investors.
     
  4. sag38

    sag38
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    It has it's flaws but consistently it has made money for the prudent investor. I'll take that any day over communism shrouded in a socialist's cloak. Give me freedom and with that an expectation of personal responsibility. I'll take that over government controlled health care, government owned markets, and entitlement programs that hold people in beholden slavery to the government and remove and vestige of personal freedom and responsibility for one's life.

    By the way: Those involved in the internet bubble and subprimes were playing with fire and they got burned along with a lot of other not so innocent people who had all their eggs in one basket instead of diversifying their portfolio.
     
  5. Spear

    Spear
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    To add to what i've said, i make a difference between " investment " and " trading ".

    * Investment is a long term view, often based on real economy.
    * Trading (day trading, scalping, and all its derivatives) is short term view (sometimes a matter of seconds with scalping). It brings nothing to the companies on the market, because it's purely speculative and volatile.

    I dare to say that " trading " in those terms, has nothing to do with the noble and base meaning of the stock exchange market, because it's not based on real economy and investment.

    I'm for general health care (non privatized), and i truly believe it's easy to say to those retired men who were ruined in the crisis " you weren't clever investing all your money there ". Isn't it possible they were miscounselled ? By who ? By those raising their hands today because they're back on the foreground ?

    I don't believe in an " all social-government-system ", but i don't believe in the " you're responsible about everything by yourself ". There's a middle.
     
  6. Nonsequitur

    Nonsequitur
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    Well.....gee....if you "go to a bank to get interest from money", I guess that you must have enough not to worry about it. If you want a 'lower rate', I'm sure your banker will be more than glad to accommodate you.
     

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