United Liberty
A Picture Is Worth A Thousand Words (or 5,700 pts)
Thu, 10/09/2008 - 6:12pm | posted by Austin Wilkes
Dow Jones Industrial Average — October 9th, 2007 - 14,279
Dow Jones Industrial Average — October 9th, 2008 - 8,579
No more proof is needed that the current intervention is only making matters worse. Bush, Clinton, Greenspan, Bernanke, and the Congress have destroyed the American economy. God help those who were going to rely on their stock portfolio for general living expenses in the near future.
I love government regulation in our economy. It makes everything much better (ie. worse).
umm what? I’m hoping that you meant the first bit (not the worse.) The current crisis arose out of the deregulation of the loan market.
Yep…That’s definitely proof that Bush and his boys have ruined it all. Just look at the years between 04 and 08! Fucking ruined it…
I don’t see how government forced banks to create convoluted, baseless securities and trade them around willy nilly.
This is the fault of the borrowers and lenders.
uh credit default swaps sold as insurance in order to buy/sell mortgage backed security pumped way too much cash into the mortgage markets which in term encouraged lenders to loosen their standards or lose all that cash. If the credit default swaps had be regulated as they should have the foreclosures would have been insignificant to the overall health of the economy. To put this on the individual borrower is simply ignorant.
“God help those who were going to rely on their stock portfolio for general living expenses in the near future.”
It’s never, never, never ever a good idea to rely on a stock portfolio for general living expenses in the near future.
“Timid men prefer the calm of despotism to the tempestuous sea of liberty.” - Thomas Jefferson
I agree with what Varneer said above: (It is never, never ever a good idea to rely on a stock portfolio for general living expenses in the near future.) I never thought the DJIA was fairly valued at 14,000, and if you look at historical P/E ratios (Price to Earnings) of the DJIA you will see that the earnings of the companies in the DJIA did not support 14,000+.
As much as I agree that our government and the politicians that have been in power have destroyed the American economy I feel that the American public is even more at fault. The vast majority of the American public failed to take personal responsibility for their investment decisions (borrowing and investing), and continually only care about the short term.
When will we stand up and hold ourselves and our elected officials responsible for our own respective personal decisions?
See link below for more information about historic P/E ratios of the DJIA:
http://www.investorsfriend.com/djia_valuation.htm
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