Did you Know?

Posted by Kendall Harmon

The meltdown in the US subprime real-estate market has led to a global loss of 7.7 trillion dollars in stock-market value since October, a report by Bank of America showed Thursday.

Filed under: * Economics, PoliticsEconomyHousing/Real Estate MarketStock Market

9 Comments
Posted February 15, 2008 at 7:19 am

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1. DonGander wrote:

Well, first, the Federal Reserve created this bubble and is creating another bubble in trying to fix this one.

Second, are the values actually 7.7 Trillion Dollars less than the value of October?

All-in-all it sounds like a good buying opportunity.

“Fallacies do not cease to be fallacies because they become fashions.”

DonGander

Please forgive my atrocious spelling.

February 15, 8:36 am | [comment link]
2. St. Jimbob of the Apokalypse wrote:

I imagine that the vanished $7.7 Trillion was more a combination of inflation and wishful thinking than capital or hard currency.  Economic value is a fleeting thing.

February 15, 8:44 am | [comment link]
3. vulcanhammer wrote:

DonGander: how good of a buying opportunity it is depends upon whether we’ve hit bottom or not.

Positive Infinity—The Ultimate Voyage

February 15, 9:22 am | [comment link]
4. DonGander wrote:

3. vulcanhammer:

I note your phrase, “how good of a buying opportunity it is ...”

It is good when brothers agree.

And I am not a prophet so I do not know if the best buying is now or in 6 months. I also agree with Jimbob (#2) and would then say that all investments are not equal - at any time including this period.

“Fallacies do not cease to be fallacies because they become fashions.”

DonGander

Please forgive my atrocious spelling.

February 15, 9:32 am | [comment link]
5. Clueless wrote:

How about the buying opportunity may be in 3 years (or 5 or 7).

Remember during the Great Depression, the folks who jumped out the windows were not the ones who initially lost their money in the 1929 stock collapse.  It was the “clever” people who jumped in six months later.  Or a year later or at any rate before the stock market finally hit true bottom in 1932.

IMHO the stock market will go down below 7,000, it may well go below 3,000, however that will not be this year or next.

February 15, 1:02 pm | [comment link]
6. Sick & Tired of Nuance wrote:

As long as the fractional reserve banking system is allowed to print fiat money, we will have this sort of thing.  The alleged reason we have a Federal Reserve Bank is to prevent the sort of boom/bust cycle that they are currently causing.  However, anyone discussing a return to a hard currency and abolishing the Federal Reserve is usually offered a tinfoil hat and given their own place on the Group W Bench.  So, to the majority of Americans I say…enjoy living in ignorance of the economic swindle you continue to allow to happen and look forward to more of the same in perpetuity.  If you refuse to see inflation as the theft of your buying power by a privately owned bank, with the full approval of the Congress you elected, what else could you expect?

...Boom/bust…................/.boom/bust…................boom/bust  
Prime low/prime high….. prime low/prime high…..prime low/prime high

Since 1971, when the U.S. Officially abandoned the gold exchange standard and convertibility of the dollar into gold, the value of the U.S. Dollar has been allowed to float freely against other currencies in foreign exchange markets.  Now we can have international boom/bust cycles.  All together now, all together now…

For those of you who don’t know it, the Federal Reserve caused the Great Depression.  Ben Bernanke the current Chairman of the Federal Reserve actually admitted that the Federal Reserve was responsible for the Great Depression.  Some of you won’t believe that, so here is the link: http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021108/default.htm

Read the last paragraph.

But la-di-da…we are Americans and we all know about money.  Go away conspiracy loonies!  Everything is just fine.

February 15, 9:03 pm | [comment link]
7. DonGander wrote:

6. Sick & Tired of Nuance:

I admire your ability to accept unpleasant truth. What you say is vital.

I do want to correct one small error when you say that:

“...the Federal Reserve caused the Great Depression.”

The truth, as I see it, is that “...the Federal Reserve PERPETUATED the Great Depression.”

The beginnings of the Great Depression are to be found in the economic upheavals around the world and the destruction of farm and industrial production in Europe. The absurdly high prices to producers in America during the early 1920s needed an equally absurd correction. The banks, Federal systems, nor anyone else could prevent it. But stupid government action could easily perpetuate it until WWII production took up the slack. Actually, we are still in the Great Depression but the Cold War and technology developments have mask the fact.

In all other aspects, I agree fully with your post.

Don

“Fallacies do not cease to be fallacies because they become fashions.”

DonGander

Please forgive my atrocious spelling.

February 15, 9:23 pm | [comment link]
8. DonGander wrote:

OOps!

When I mention “...economic upheavals around the world and the destruction of farm and industrial production in Europe” I forgot to specify that this was a result of WWI.

I can concentrate on spelling or content - not both.

“Fallacies do not cease to be fallacies because they become fashions.”

DonGander

Please forgive my atrocious spelling.

February 15, 9:35 pm | [comment link]
9. Sick & Tired of Nuance wrote:

Thanks for your kind words DonGander.  You and I make two.
Only 301,139,945 more to go…
The revolution has begun wink
Tinfoil hat wearers of the United States…UNITE!!!

February 15, 11:03 pm | [comment link]


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