Thursday, March 5, 2009

Stock Market Woes

The stock market reached a twelve year low today. The average investor with a stake in the market through their retirement plans or brokerage accounts is frightened and confused. The professionals (who have profited tremendously over the years by convincing us that, in the long run, the market is the best and safest place to keep money) are now scrambling to call a "market bottom," to point out how most stocks are greatly oversold. Blame is being thrown around like confetti on New Years Eve; the truth is no one really knows what to expect.

It makes me ill--to hear the so-called professionals say that the rising yield curve is positive, that the markets discounting mechanism is predicting Armageddon, that we are near a bottom, that stocks are trading below book value, that the overall negativity is positive, and that there are tremendous opportunities in these markets for those with patience and good judgement. Give me a break. They have been saying this for the last six months; those who have listened have lost an additional thirty percent over and beyond the initial thirty percent they already lost.

Wall street is blaming government and government is blaming wall street. What is going on is that the old rules no longer apply. The stock market may not be a predictor of the future economy. The entire financial services industry including banks, stock brokers, and insurance companies have been exposed as being either corrupt or incredibly inept. The American automobile industry has been making poor decisions for years. Consumers have been out of control in their spending and gullibility. Government has been more concerned with promoting their own interests and getting reelected rather than what is best for their constituents. Those who do care don't really know what to do and can't admit it.

We will get through this and we will be better off. Hopefully the degree of pain and suffering won't be too great, although there needs to be enough so that we won't want to get burnt again. We have the potential to make life on planet earth everything we have all wanted. Through cooperation between countries and governments especially in the areas of science and technology we can figure out how to support the worlds peoples so that everyone will have a comfortable and healthy life.

What we can't do is let these difficult times go by without collecting for the payment we will all have to make. Although there are no guarantees, we are closer than ever to making real breakthroughs. We need to stay strong and not listen to the B.S. We need to see the ridiculousness of the ridiculous and not be afraid to express ourselves and believe in ourselves. Real hope lies within the individual, but not by following blindly those who are trying to control and manipulate us for their own interest. It will be interesting to see how we do. I am cautiously optimistic.

No comments:

Post a Comment