The forces driving the market over the recent economic downturn are largely psychological. The degree of greed, selfishness, hedging and corruption uncovered when the housing bubble burst shook the confidence of not only Wall Street, particularly the Financial Sector. but also the confidence of main street, and of course, the confidence of ordinary Americans, which is near an all time low. As Franklin D Roosevelt noted so many years ago: "The only thing we have to fear - is fear itself". If fear, uncertainty, and doubt is driving the current market, then the cure is to once again establish confidence.
Once confidence in the banking and financial sector begins to be restored, the financial sector will once again take it place in providing loans needed to start small business, to financial autos, to provide mortgages for home owner and commercial real estate investors. As consumers begin to regain confidence that their jobs are secure, they will want to spend money to satisfy desires for goods and service which have long been pent-up because of fear. Once confidence begin to return to the business sector, companies will begin to employ additional labor to increase inventories of goods and services needed to generate the profit margin that drive expansion. Once confidence returns to Wall Street, money previously withdrawn form the bear market will return as American once again begin investing and provide capital to businesses of every shape, size and color. President Obama's economic plan is about the government being there to calm fears and restore confidence and normalcy to our floundering economy, as well as laying a foundation that will lead to a future in efficient green energy and a clean eco system to stabilize the environment. Regards, LelandJ On Wed, 2009-02-11 at 17:06 -0500, Bob Calco wrote: > > The entire key to your argument is the word 'mechanism'. You assume > > that > > such a thing exists. Why is it that we believe in market forces up > > until the > > point they do something we don't like and/or cant explain. > > Because the Fed Reserve is not a market force. Fannie Mae and Freddie Mac > are not market forces. > > The "Community Reinvestment Act" that created the "subprime mortgage market" > is not a market force. > > Congress is not a market force. Neither is the Presidency. > > Our political process, in which many wealthy people (of all political > stripes) participate, is not a market force. > > Terrorists and hostile foreign regimes are not market forces. > > So when you see something REALLY unusual in terms of normal market behavior > -- like, oh, say, half a trillion dollars suddenly and precipitously > vanishing from money market funds of a particular country one fine afternoon > for no particular reason-- the assumption it's a "market force" may not be > true. > > > Oil prices > > have > > risen dramatically and then fallen right back before. Quite simply, > > they > > were unsustainable at that price. > > Which price? The one before the rise? The one after the rise? Or the one > after the drop? > > > Runs on the banks have occurred many > > many > > times in the past. The reasons are complex and many. But what they > > aren't is > > conspiracy - which is what you are implying. > > Well, I'm glad you ruled that out for me. I shall rest easier now, thanks. > > > < Dazzle me, Geoff. Educate me.> > > > > Until you wind back the rhetoric and cut back on the paranoia it is > > impossible to 'educate' or even debate you. At the moment your > > 'soapbox' is > > so far away from the rest of us that you cant hear us. > > Who is "we"? Again, who's on a soapbox, talking to what audience? > > Mostly I engage in OT to vent my spleen. Every once in a while I get wrapped > up into thinking something I might post might persuade someone of this or > that. I eventually realize the folly of that hope, at which point I try to > just enjoy the banter. > > - Bob > > > [excessive quoting removed by server] _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[email protected] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
