Is there any possibility that the stock markets collapse become systemic?

Question

As I know the problems with the foreclosures are spreading to California and Florida!
Will this crisis be benefical " nation building" on Middle East.

Answer 1

Interesting take on the issue.


Odd six months ago I brought that up. My prediction that foreclosure rates will sky rocket was met with responses that were pure apathy. This is just the begining.

Answer 2

The stock market crashed in the early 1920's which was the precursor to the "Great Depression". More recently, in August of 1991, the stock market crashed again. They called it black tuesday.

Since then, the stock market has a shut-off component that if it falls too fast, it will automatically shut down. When a market falls, people get nervous, rumors start, speculation develops, phone calls are made. The next thing you know, it's totally out of control.

These shut down components of the stock market were implemented to derail a crash.

Answer 3

NO. The stock market will not collapse. The only benefit will be for those who are buying homes. Nation building is a fiction in the middle east. The arabs are incapable of building self sustaining nations without terror to hold it together.[That doesn't include Turks or Kurds].

Answer 4

There are systemic problems that have been masked recently by massive deficent spending in the military sector.

There have always been arguments that capitalism is inherently unstable because the system depends on steady growth and expansion. The American economy and other economies are dependent on oil. Even the food you eat depends on oil to create fertilizers, run farm machinery, and transport product.

New finds of oil deposits is not keeping up with demand, and demand is growing rapidly. You can expect exponential growth in oil prices over the next decade.

Some industries, like airlines, will suffer huge setbacks. There simply will not be enough oil to maintain our extravegant life style.

Answer 5

If such a thing does become a crisis it is because of a complete lack of financial responsibility on the part of the American people at large. This may be indirectly linked to the government's own lack of fiscal responsibility.

Parents need to teach their kids how to manage money, cut up their credit cards and live within their means.

Answer 6

chicken little..the market is more complex..to even try to explain on yahoo..liberal schmucks and foreigners cheering for calamity..without a clue..

the mortgage sector is highly regulated with many safeguards

mortgage companies had unprecedented profits for 6 yrs running..and if there are foreclosures it was personal decisions that made all of that happen..there are no victims

I am willing to bet that anyone that cries collapse has nothing at all invested themselves to have a relative comparison..to the swings economically that happen year to year..sometimes season to season within a year..

Answer 7

A large part of the problem is that the dollar is being held down deliberately to aid exports but this also causes huge problems when buying in.

Bush prevaricates on almost everything which also causes severe uncertainty.

A new president would go a long way right now!!

Answer 8

Uh oh better start stocking up your basement now! You never know when those evil Republicans are going to pull their economic levers and cause the stock market to crash so they can continue their wars in in the middle east.

Answer 9

Get that foolish D*ckhead Cheney and his faithful dawg Dumbya outta office and everything will be fine.

Or maybe ask China for a solution, lol.

Answer 10

I really hope so!