There are still a ton of great shorts out there.
Was your mind too narrow to grasp the post to which you replied?
We are talking severe ramifications here, should "short at will" remain the call of the day. I am not talking about a recession where the economy bounces when, "the banks are selling homes at 30 cents on the dollar. . " I am talking about the sort of action where bankers foreclose on too many homes, and offer them at 10 cents on the dollar with no takers for years. . . because so many have filed bankruptcy and cannot get credit. . .and are more concerned with saving any money they do make for food, prescriptions and essential supplies. Unemployment above 20% for 5+ years. Failure of small businesses above 50%. Consumer credit failure at catastrophic levels, resulting in millions of bankruptcies. And too many bankruptcies cause bank failures. Too many bank failures and you have destruction of consumer confidence which could last for decades. Add to all this the sort of anarchy that could break out in inner-cities, then as there is "nothing left worth stealing in the inner cities" . . home invasions become common place in the suburbs surrounding major cities.
Now you could begin to see the sort of picture that is on the not too distant horizon, should we just break through those lows and continue on with the next Great Slide in the markets. It is like playing with fire.
Short-sell at will. "There are still a ton of great shorts out there." Plenty of gains to be made off the backs of destroying American companies one by one. Why not? Margin on. Let the debt rise. Live today, let our children worry about tomorrow. Party on, dude! Chain smoke Camels with no filters. Drink a fifth of vodka daily.
Live life with no regard for tomorrow.
It's all the same, is it not?
This is precisely the sort of near-sighted thinking I was warning about in the last post. It is the same thinking of those traders who margined to the hilt in the roaring 20's. And it is the same thinking that occured with those traders who were "short-selling at will" between November of 1929 and Summer of 1932 when the bottom was finally put in. . . .when the MAJORITY of the damage to the economy was done.
Remember back then it took putting common people to work building roads, dams and bridges and a world war to pull America out of that depression. Go there again, and I fear we could be there for decades.
"Cash is kng in a recession...so hang on to yours for some really good deals. "
Totally short-sighted thinking. This statement assumes a bounce in the economy. Bounces are NEVER guaranteed. Sure. . . hang on to your cash for 5, 10 or 20 years and you might grab some bargain homes. Big deal. That is hardly what I call a great play. It all depends on how much economic damage is done. Once again, I say, it is the decline of the stock market that causes the decline in the economy. . . and NOT the other way around. So don't mess with what you don't understand.
Again, I say, let's not ignore history and doom ourselves to repeat it. Let's walk softer. Think harder. Buck up!! Have some integrity. Consider passing on the near-term [short-sell] gains for some long-range economic assurance. Act with prudence, thinking of the economy we wish to leave our kids.
And for goodness sake, stop playing with what you don't understand.
We will be in our 40's before we see times like we have the past ten years.
Sorry. I don't relate. >g<
Rande Is |
