It's getting serious folks...

[Stewie]

A 50 bps drop in rates and the stock market drops. Now, bond insurers and mortgage debt is being downgraded. Hang on to your asses!

[Stewie]

.

[chiefforlife]

So what does this mean to the average person?

[banyon]

So what does this mean to the average person?

I'm rooting for massive hyperinflation, at least for a while. That student loan debt and car note can be paid off in no time!

[Stewie]

So what does this mean to the average person?

It means you and I will be bailing out the banks. You get shit for saving money, and most likely losses for investing in the general market. We're fooked. Oh, and probably job losses.

[Dr.Fine]

So what does this mean to the average person?


see KevK post:


http://www.city-data.com/forum/business-finance/237149-promised-recession-versus-1980-s.html

[Stewie]

see KevK post:


http://www.city-data.com/forum/business-finance/237149-promised-recession-versus-1980-s.html

Whatever.

The issues now have nothing to do with what is mentioned there. This is all about banks lying about derivative values... i.e. mark-to-model. There are $516 TRILLION worth of banks hopes and dreams of making big bucks that are now worth TRILLIONS less.

[Donger]

This is why I have all my money in Eastern European sex slaves.

[patteeu]

I'm rooting for massive hyperinflation, at least for a while. That student loan debt and car note can be paid off in no time!

Hell yes. I'm going to take out a huge 2nd mortgage on my house and invest it all in gold! Yeehaw! :)

[Dr.Fine]

Whatever.

The issues now have nothing to do with what is mentioned there. This is all about banks lying about derivative values... i.e. mark-to-model. There are $516 TRILLION worth of banks hopes and dreams of making big bucks that are now worth TRILLIONS less.

I don't argue that--but for anyone who didn't weather the recession of the early 80's it's going to be very salient.

[tiptap]

The 80's experience can be talked about the boom and bust cycle that started in Oklahoma with Penn Bank (I was an insured depositor). And took out banks in the Seattle area. I had money in that bank too but again that asset was bought out.

Stagflation. That really doesn't help Banyon because your wages fall as well as inflation zapping buying power.

[banyon]

The 80's experience can be talked about the boom and bust cycle that started in Oklahoma with Penn Bank (I was an insured depositor). And took out banks in the Seattle area. I had money in that bank too but again that asset was bought out.

Stagflation. That really doesn't help Banyon because your wages fall as well as inflation zapping buying power.


Wages go up in hyperinflation, because people won't work for nothing, though there is some lag. The debt, however, won't.

[alnorth]

If someone is a "saver" under the age of 55 or so, then I have very little sympathy for them anyway. (aside from small rainy-day funds) Saving is for retirees who need a portion of their money stable for income, the rest of us should be investors.

I'm cheering for a full-blown panic and a stock market plunge based on just negative hype from the media and no real information whatsoever. The more the stock market gets killed, the deeper I am digging into the couch cushions for spare change to buy in. The economy is slowing a bit, but it is still strong and there is no real reason to believe that in the long run the future isnt bright.

I am a buy-and-holder, but if your going to try to jump in and out, then consider that everyone knows you are supposed to buy low and sell high, but human nature keeps everyone from doing that. The pundits say you should panic and sell out, so after the plunge, you finally decide to sell. Then the bull run hits while you are standing on the sidelines, you finally decide to buy back in but its too late. If you are going to try to time it (which I believe is a fool's game anyway), then you should be selling when everyone is predicting Dow 20,000, and you should be buying when everyone is frightened senseless scrambling to cash.

Stocks are on sale! For just a limited time only, everything must go!

[HonestChieffan]

The sky is falling!!

[Otter]

Learn to speak Chinese.

It's times like these (as predicted in OP) when the people with the money to invest become wealthy.

[alnorth]

Learn to speak Chinese.

It's times like these (as predicted in OP) when the people with the money to invest become wealthy.

You dont need to learn Chinese, just invest in China! (but dont overweight, China will have their rough spots as well) I have at least 40% allocated to international funds all over the world. As a side benefit, every time the dollar goes down, the international funds go up a bit.

[Adept Havelock]

The sky is falling!!

Maybe, because the ground sure isn't rising. ;)