Lee-re: stupidity, bubble, diverse views...
I think that is one of the most stupid statements on SI, The Fed isn't to blame for this.
HORRID statement coming from an intellect like you!
I concur with Frank that the Fed is partly responsible for the current economic and equity carnage.
How did the excesses occur in the first place?
Who pumped massive liquidity into the economy, encouraged massive technological expansion, and stimulated bidding frenzies for equities of those expanding entities?
Who drained the liquidity once deemed "enough" expansion by businesses?
Was this liquidity injection necessary? If so, why did it go awry?
Who is flooding liquidity into the economy again and why?
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It is the people that thought that these stocks were really worth 200 years worth of earnings, that internets were going to cure cancer, B2Bs were going to multiply profits 1 billion times in weeks or that Biotech was going to cure all sickness in a day.
Single metrics for diverse industries with diverse growth rates? Interesting.
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The morons bidding this market up to ridiculous levels are more to blame and those of us that tried to warn everyone that action like we have now was going to have to happen were scoffed at.
Morons?
Should those who invest in hope of secure futures for themselves and their loved ones be called morons?
Should some who invest hoping to grow private savings for their retirement, instead of sole reliance upon Social Security, be labeled morons?
Granted, not all possess technical and/or analytical abilities necessary for securities evaluations.
... Even those who do, I doubt if they called the markets perfectly.
... Just look at the pundits' score cards/ratings by Smartmoney.com.
smartmoney.investing.lycos.com
Yes, some uninformed and innocent investors shouldn't have been in the market in the first place.
But can you blame them totally?
How about the media, message boards and other means of communications that tout successes in the market?
Granted, there were experienced souls on various boards here and there, who attempted to share their logic and wisdom with these investors. Unfortunately, their voices either weren't loud enough or didn't reach far enough to help those most needed.
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These people need to wake up, smell the coffee and take this medicine like grown men and women.
Interesting view! Compassion, compassion....
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Valuations are still too high and now that they stretched this market to the upper limits, we might, MIGHT, just test the lower limits which are much much much lower than this.
Too broad?
For my own investment only, I use different metrics for different industries. Both qualitative and qualitative variables are included in my evaluations and forecasting. I don't mind paying the premium for quality management with established track records (like Mr. Buffet of Berkshire Hathaway).
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I get a kick out of all these people trying to blame Greenspan for taking away the heroine that was going to kill them eventually anyway.
Heroine?
Poor analogy! How can you relate investing for better future to drugs? I can see it as gambling or speculating if done uninformed.
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If they don't, then they were the foolish money and that cash is going into much more intelligent hands.
Count their blessings, but don't allow such luck to go over their heads.
Good luck to you.
Regards,
DISU |
