Personally I see two reasons for the market fall. Most investors see the bailout as a bad thing. They see it as the government having their hands in the market way to boldly and broadly. The second, is who I will refer to as pirates. These are the greedy bastards that need to be put in jail for the outright theft they are committing on the market. They have been short selling companies (which I am not sure exactly how you can actually make money by driving the price of a stock down...) and then when they fail under the pressure, they are buying up the assets for pennies on the dollar (which may be the whole way they profit off of short selling... but as I am not a market expert, I really don't know.)
The failure of our regulatory system to maintain fair business practices is honestly really killing our market right now. And while other posts I have made have spoken against government intervention, I do completely agree that the government does need to enforce fair and reasonable business rules, so that pirates don't run the system into the ground.
Well... I certainly hope it does stop soon... but I don't see it really stopping short of under 5000 honestly. And we will see the failure of many more businesses along the way... and a lot more of government nationalizing even more of our private industry.
4 comments:
I thought you believed in free markets and no/little regulation-now you complain about greed and manipulation of those free markets as a source for the collapse.
If the market hits 5,000 it will be a sight to behold...insane stuff going on right now.
The bailout did not address the credit crunch and banks still dont want to loan money in any amount to anyone without assurances that are impossible to give.
It some ways it's a self fulfilling prophecy and circular in nature.
Any economist who has studied history should have seen this coming. Sub value loans on anything that can go up and down will kill you because you cannot recover your investment on the debt you've taken out.
The regulation we have now is the wrong type, and I will never condone the government actually getting in the market.
What I am for, is that the government putting fair business practices into play. Bit of a difference between what we have now, and what it should be.
Does that mean I think we need more regulation? No. I think we need to slash most of it out, and instead only enforce limited practices. Such as rules against profiting off of driving a company out of business using underhanded methods.
Well, this isn't regulation, it's correction which is different.
And no, I don't condone it, in fact it's scary and sorta confirming my worst nightmares.
We had much fairer business regulation, but they were stripped or not enforced where they had been before.
Only if the government gives control back to the companies (by of course selling their shares) and imposes regulation on the energy and finincial markets will we recover as we all for the most part would like to
Post a Comment