dananoah

Nowhere to Turn: This Bear's Different

Another thing to keep in mind. The baby boomers are beginning to retire. Money will becoming out of stocks, bonds, etc. Especially now since their networth was but by 50 to 65%.

The market may bounce after this recent tumble, but the long term trend is down.

Nowhere to Turn: This Bear's Different

Yes its different. Basically the only word to describe it is greed. The american risk level is much hgher than it has ever been. This not only applies the the general public but also to the CEOs of most companies. Value investing use to be the norm now momentum trading is the norm. Pressure is on CEOs to grow, Growth, Growth, Growth and all expense. This means moving factories and jobs out of the country, taking on riskier projects, etc.

Another problem is Americans themselves, they want to become rich overnight. We have become lazy and stagnant. We spend more than we save. Lets face it even the government feeds this. Their stimulus was for spending, not for paying off debt or saving.

On top of our higher risk levels money supply has grown debasing the dollar to the lowest level its ever been. America has gotten away with this because most of the free world pegs there dollars to the US dollar. Once they lose faith in our dollar the real collapse will begin.