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How Worried Should We Be About the Stock Market’s Recent Declines?


#1

How Worried Should We Be About the Stock Market’s Recent Declines?

Josh Bivens

The stock market has taken a hit in the past few days, with concern over the Chinese economy driving a big selloff. How worried should we be? The short answer is: not very.

My assessment of the underlying health of the U.S. economy hasn’t really changed over the past week, even as the stock market has declined pretty spectacularly in recent days. Why this equanimity?


#2

Fascinating.
Yawn...


#3

Economic growth addictions are the primary driver of Human contributions to climate change.

The article has nothing to offer anybody in the 99%.


#4

If only 10% of the population owns stocks and Wall Street only causes problems for the 90% why not vote to get rid of the stock market?


#5

Well, about 60% of Americans own stocks and bonds either directly or indirectly... more if you include union pension funds, company pension funds, and University endowment funds, so I think it is important. My personal opinion is that they should be worried, as the same mistakes and damn near criminal activities that caused the meltdown of 2008 are alive and well today. What do the players care? No one went to jail last time, no one will go to jail this time. Sad.


#6

Hedge funds are suppose to hedge. Fiduciary responsibility, etc. So, this is no problem unless you invested with a lawbreaker. You're sure you didn't, right?


#7

I collect newspapers and have the New York Times from January 1 to 15th 1933. In the business section on the January 1st edition there are 4 economists who say the the economy will recover by the end of the year. Of course that was just the beginning of the great depression. Even if our leaders knew that our economy was crashing, they would not tell us until they moved all of their money to a safe place. How can they continue to reduce the middle class and expect a consumer based economy to prosper?

Gold is a great standard. In 1933, you could by a mink coat for $100 for example. (I am an animal lover and would outlaw animal fur if I could.) But if you realize that $100 would buy 5 ounces of gold at $20 per ounce. Simply take today's price of gold on Yahoo Finance of $1,150.60 times 5 and that makes a mink coat at today's price in gold $5,753. That seems about right.

I paid $100,000 for a home in 1987. Homes in my neighborhood sell for $350,000 to $600,000 now. Although I feel that I have gained value in my home, actually I would not live in a $100,000 home today. It's the devaluation of the dollar, not the increase in value of real estate.


#8

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#9

Look who's helping run the show...

War Pigs on Wall Street


#10

He looks like somebody I'd trust with my life savings. The stock market defined: " putting all the money you can afford to lose in the hands of people you don't know. "


#11

This market isn't a bubble?!? 0.o