I knew it! Stock market a bust

[russotto]

A moment of silence, please, for all those who autodefenestrated today.










Well, anyway, my FU savings account interest rate is looking better and better.

[Dagnabit]

Well I spose if we're gonna have this bad time that we got a-comin, might as well just yank the bandaid off quick like, rather than slowly pulling it off bit by bit. Just cut the value of everything in half, get it over and done with.

[tw]

Originally posted by Dagnabit
Well I spose if we're gonna have this bad time that we got a-comin, might as well just yank the bandaid off quick like, rather than slowly pulling it off bit by bit. Just cut the value of everything in half, get it over and done with.

The Economist, in a three page report, noted an interesting US economy trend. Since 1960, per capita savings, minus investment, had oscillated between 0 and more than 10%; with sharp changes througout the variations. However, the savings number never went negative for 40 years until the last few.

The stock market was easy to make money until the last few years. All it took was to identify a new, upcoming technology and invest. Suddenly everyone is throwing money into anything that 'sounds' high tech - regardless of its possibility. Broadcom.com as a prime example. Suddenly a .dot com is worth more than major international manufacturer? Not really. But intelligence was no longer the driving force.

It is not a crash. When Broadcom.com and Yahoo drop to a P/E of about 14, only then has the stockmarket returned to intelligent valuations. Where were all the saving going? Into a lottery that was once called the stockmarket. Curious what will happen next.