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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 374.94+0.2%Nov 19 4:00 PM EST
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To: ggersh who wrote (114748)12/14/2015 3:42:18 PM
From: Maurice Winn2 Recommendations  Read Replies (2) of 217882
 
What failed? The banking system is the ability to move money. As soon as a bank refuses to move money in accordance with their contracts, their share price should go to zero [or to the highest bidder], more money put in to fulfill the contracts and business as usual continues. Bank share prices didn't go to zero though some got close, rightly - but I didn't buy any. Warren Buffett did. He nabbed a megachunk of Wells Fargo at a bargain price [actually, I did too, at the same price as I covered my short which was made when it was up high].

The problem was that bankers and their shareholders were losing their shirts and creditors were under threat. House "owners" were also losing their shirts due to having speculative mortgages on overpriced property. Let the chips fall where they may. Nobody forced them to buy the houses in Escondido in 2005 and 2006 that I looked at and decided they were about twice the price they should be so I didn't buy. Those who did buy should not whine that Alan Greenspan and Big Ben were to blame.

Speculators often lose their money. Speculation is a zero-sum game of peak and trough smoothing, and is not for the faint hearted. Speculation is a noble cause with many destroyed people who tried to do it. Because of transaction costs, it's less than a zero sum game.

Mqurice
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