Quote:
Originally Posted by RougeUnderoos
Well you're in good company, because I don't think anyone actually knows how it all works.
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It works on the basic principle of "fear and greed."
It's really beautiful man. Except the part where you periodically get killed.
There are times when it gets overbaked on both sides of that equation. In the end, it all makes sense.
I would also agree with the observation that the last month has been a "professional panic," with the common investor not really involved to any great extent . . . . those can be very short-lived. I think it was in 1999 the market fell 26% or so between July and the end of September and was back level again by December.
The USA is a mammoth presence in the global economy, in spite of the creation of "the consumptive habits of 600 million new Americans" in the last decade as a result of globalization, the description of a New York Times economist recently.
I'm not sure why anyone would think the USA doesn't matter. That's gradually changing but it's far from being a faded presence.
The big elephant in the room that could make everyone permanently poorer is the largely unknown size of derivative debt around the globe. A cave-in there could make the great depression look like a picnic. And so you should wonder why the professionals are panicking.
We should have a pool on whether or not the market finishes on the plus side today.
Have another nice day!!!
Cowperson