I don't want to babble off again about this stuff.
I saw the paper today, I always wonder how worried people are. The reason economists can't predict the economy. The problem is that people are dynamic, and markets are dynamic. They are like an ever evolving machine. If it didn't change, then it would be predictable.
What is predictable, is the human survival instinct. The epic part of this, is that It's wall street in a contraction cycle, over the past 2 weeks, they are starting to come to terms with it. They don't like it, don't want to deal with it, have been in denial of it. In the stages of grief they are somewhere between that and bargaining. Maybe starting depression.
Greenspan(that asshole btw, who is a significant reason we are in this.) Said this is a once in a 100 year cycle. I've suggested this is just a 30-40 year cycle. Problem is just like every recession is different, each 40 year cycle is different. So... They see it as different and extra scary.
but again, with the market under 11k when we recover, the money you put into the old 401k, is the best money you will ever put into the market. The returns on that new money will be the highest return on your money.
The impulse is to "Pull money". I'm not saying we couldn't go to 9k, but the other thing is that the market could suddenly bounce to 12K, you could put your money back to work, and we could then come back to 10K... Then you pull it... and all you are doing is losing money.
alright I've ranted enough......
I'm just saying "Don't be Scared".... Someone said "sometimes the market goes down, to try and get some people's attention"..... Mother market is trying to wake some people up.... Or trying to shake out Assholes who over value their company that is about to got bankrupt (LEHMAN). The market wants some other companies to get their heads out of their ass. As well as some other people who need to Intervene in the financial system..... These are good things.
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