Market Volatility:
I have written about this before, but the market has taken this to a new extreme. There is really no excuse to have swings of 1,000 points in intraday trading. It is apparent that many people are either profit taking every time there is an upswing or removing large sums of money from the market as a whole. I find it troubling that people have so little faith in the markets now that the only investors who remain long are those with substantial losses. Hopefully we can settle into a pattern of either sustained loss that will allow the market to find a bottom. That is the only way that I see the market stabilizing in the near future. My favorite quotation, “Buy when there’s blood in the streets, even if the blood is your own.”
The dollar will be worthless in the near future, at least that is what it seems like our government is trying to accomplish. The mere mention of another stimulus package is absolutely insane. Did we not just stimulate our banking industry with 700 billion dollars? Does the Fed really find it necessary to mention that they foresee more rate cuts? We are flooding the global economy with American Dollars. If a company you owned were to start passing out shares of stock you would be outraged. Why is there not similar anger over the outright dilution of our currency? We are losing traction against almost every other currency in the world that is not directly linked to our own.
To quote Ivan Boesky, “I think greed is healthy”.
Submitted by Chris Bailey
November 3rd, 2008 at 11:20 am
While I can understand Chris’ exasperations about the current market volatility, I don’t support any type of government involvement in controlling our markets. The US government wants to shut down the market if the DOW drops too many points. The government needs to stay out. When the market is dropping, there is a good reason for it and it presents a buying opportunity for investors. The market need to correct itself, and we need to allow it. Government intervention and central planning does not work.
If government intervention and central planning works, why is the market still plummeting after the ridiculous and unconstitutional $800+ billion government bailout? The bailout was wrong. It is reverse Robin Hood – steal from the poor and help with rich Wall Street fat cats.
Chris is correct our money is being devalued. When the Federal Reserve prints more money, it devalues the existing dollars. There is no oversight on the Fed. The Fed does what it wants to the detriment of the American People, and they are accountable to no one. The American People do not even elect them.
Our Congress wants another economic stimulus package. Great, I could use another government handout. However, this is not the answer. Printing worthless paper money only devalues the money we have.
When people are in economic hardships, they don’t go out and buy boats, airplanes and expensive shoes. No, they cut spending and try to save. On a macro level, the American economy needs to do the same. We cannot spend ourselves out of a recession.
If our government and the Federal Reserve continues the wasteful government spending and printing of paper money, our dollar will become so worthless, we will end up like the Weimar Republic in Germany.
Hopefully, people will see the light. Quit living in debt, live within their means and save. Capitalism is built on equity, not debt. We need to abolish the Federal Reserve and restore sound money – gold and silver that has value. Fiat money cannot sustain itself.