If so, do you think market activity is specifically interpreted or spun in order to further manipulate the market?
2007-03-14 07:14:13 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
You've got to be kidding me! You think that the market deciding to gorge it's self on risk the past 7 years is also unrelated to creating an false impression of economic security?
2007-03-14 09:37:43 · update #1
We are seeing the later half of the greatest pump and dump in history. Except it wasn't suposed to dump until Bush was out of office.
2007-03-14 09:40:38 · update #2
we can't ignore the fact that huge asset bubbles were created in the market. lower volatility and higher investor confidence caused the market to be oversaturated. the VIX index fell into single digits and everybody from the taxi driver to the produce salesman was giving investing advice. what happens to prices when everybody who is going to be in the market is already in the market? prices begin to drop because there is no increase demand. supply will take control and a selloff will take place. nobody was fearful of the market and we saw junk bonds and small caps giving the same yields as large caps and AAA bonds.
the market grew too big too fast and a correction was due. before march, the dow did not see a 2% correction since july '06 and a 10% correction since 2002. investors knew it was time for the market to correct itself and were looking for an excuse to take their profits. initial news of the yen-carry and sub-prime gave some investors the excuse they needed to carry out their selling.
2007-03-15 08:01:18 · answer #1 · answered by jnizzle 2 · 0⤊ 0⤋
I think it's the gummint. They're in it with the military-industrial complex trying to cover up the UFOs in Roswell. It was them UFOs that shot Kennedy to secure oil for their Japanese built spaceships. The mainstream media won't report this, but it's true.
Or maybe things really are what they look like and the reaction to the subprime market is just the market realizing that it has gorged itself on risk for the past 7 years and eventually that strategy will come around and bite you.
2007-03-14 15:33:19 · answer #2 · answered by BigBill 1 · 1⤊ 0⤋
heck no. Corruption and the market go hand in hand. But sub-prime mortgages are a real worry. It could be the catalyst for the next recession-depression. That is a very big worry.
2007-03-14 16:34:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No. You're on your own there.
2007-03-14 15:08:51 · answer #4 · answered by BosCFA 5 · 0⤊ 1⤋