« prev   random   next »


"Let The Market Take Care Of Things"

By ohomen171 follow ohomen171   2012 Sep 28, 1:41pm 1,561 views   3 comments   watch   nsfw   quote   share    

There once was a gentleman of great intellect and character named Herbert Hoover. He graduated from Stanford University. He had an incredible career in the mining industry. He made a fortune and rose to be president of the USA. When the stock market crashed in 1929 and things started to go bad, he made the comment: "Let the market take care of things." We all know what happened next. We have a man running for president now with the same slogan: "Let the market take care of things." Need I say more?

1   New Renter   ignore (11)   2012 Sep 28, 2:53pm     ↓ dislike (0)   quote   flag        

Depends. Would the value of my savings plummet more slowly if the market were to take care of things? Would we see the end - for a while anyway - of real estate bubbles?

2   ohomen171   ignore (0)   2012 Sep 29, 12:11am     ↓ dislike (0)   quote   flag        

There is a lot of merit to your comment and I appreciate it. If we all stood aside and let the market take its course, the housing market would crash another 50%. Interest rates would go up. Your savings would probably survive assuming that your financial institution did not collapse. Literally millions of people retired or nearing retirement would see their 401(K)'s wiped out. Several major financial institutions would collapse. Unemployment would go to 40%. There would be food shortages and starvation. There would be violent social unrest. The US government would eventually default on its debt. The entire world would be plunged into an economic calamity.Eventually things would sort themselves out. But you would have massive human suffering along the way. Also , as George Soros recently said, in that kind of environment a new Hitler could easily arise. This approach was tried in 1928-1932 and it failed miserably. Only those owning gold would survive in a sense.

3   New Renter   ignore (11)   2012 Sep 29, 2:44am     ↓ dislike (0)   quote   flag        

The RE market SHOULD crash.

about   best comments   contact   one year ago   suggestions