Quote Originally Posted by flyingimam
Being a business major doesn't make me an investor, but it sure helps me understand things better and I don't buy the free trade and free market (with or without regulation) promise anymore. when I'm a millionaire I may partially invest in stocks but it will certainly not be my first choice.
You have to remember, Keynesian economic/ financial infrastructure has intertwined us together. As banks fail, so go the economies they represent.

its not about "jumping" ships. I wouldn't get on this ship in the first place when it has no "lifeboats" sure it may be the most luxurious ship in the economy when its maintained correctly, but still i wouldn't wanna ride it when there are safer ways.
Its funny you say that. Part of the problem was created when smart investors did something that was both genius and kinda sad. These "smart" investors bought up huge sums of these securities and bought insurance (a lifeboat) on the instance that the bundled security was to default. If it did, the holder of the CDO would collect a "claim" just like a homeowner who's house burnt down. AIG did not have the money to pay these massive CDO's and other investments. Commonly, this is called a "credit default swap" that is about to be completely regulated (limiting leverage ratio's to under 15:1) very soon.

Secondly, the "Gov" is going to provide a floor now. That way, people will be less likely to pull their money out due to fear.


there are far more secure ways for investment, ways u can have more control over and take less risk. Gold, land, owning small businesses, owning rental property, offshore investments in tourist resorts. China & India offer great deals for foreign investors, why? cuz they are developing countries and can afford paying much higher interest rates despite the fact that there is no such a thing like FDIC there.
Only gold will hold its utility. The rest are independent variables in the land of Keynes. Foreign banks will begin to fail also, setting up a world wide recession if credit is not freed. Chinese and Indian goods will no longer be demanded, causing them to drop prices resulting in deflation. This deflation will spill over into oil producing countries, and supply will soon be restricted to offset fixed cost already outstanding (buying land, discovering oil, buying equipment all at previously higher prices). The only thing that slightly hedged will be consumer staples (razors, toothpaste, etc...) as well as renewable energy.

Pickens: Natural gas, Warren Buffett could ease nation's woes - CNN.com
see, the more money and capital u have, the better u can position yourself for stock market and perhaps take short-term hits.
But I'm afraid if we don't change some policies around, we ought to expect another major crash in future which scares the hell out of me.
and some1 like him, probably has investments in at least 10-20 different fields from stocks to land to whatever u can think of
I love T-Boon:jointsmile:

but u r correct people gamble and do make money, its just the matter of how much of a hit u can take and stay good. Some investors know what they are doing and even they have to cope with hard times, and some have no idea and get hit hard. I don't like 1-2 years of paranoia over money every 10-15 years, and we have had this trend happen eversince great depression
There were depressions during the 19th century, but those were based on fraud, as well as extortion and government intervention... Gold, yes gold is the only thing that will hold value. As conditions worsen and hyperinflation or hyperdeflation persist, people will being buying up supplies of bullion. You could see gold prices at $100,000 per ounce in such a situation. But seriously, if credit is not freed up, this very well can happen. :beatdeadhorse:


remember that no1 can guarantee how bad or long each downturn will be or take. and thus i find it quite risky to have your money in a market that can go down with just 1 bad statement by 1 famous man. its psychologically a very paranoid market, it goes up this way and it goes down this very same way.
It will go down under paranoia, but if its only hot air, and of little fundamental significance, it will go up shortly and people will make a killing. Im not going to beat the dead horse again:smokin: