When sailing into a storm you should be prepared for some rough water and batten down all hatches. Do not be casual when warning signs are all about.
Possible that Stock Market Panic Starting Now
- Thread starter dailybuck777
- Start date
Actually, for young people, volatility is their friend. If I were younger I would be applauding. Stay employed and keep buying. Of course, it took me 30 years to figure this out but this nugget of wisdom has been passed down to my children.
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and, like I said, bet that little amount of money the little guy has invested is a big deal to them.
Look, I understand your position and it's impossible to argue against the fact the the upper 1% in America have a lot of wealth that they will never ever spend. So what do you propose to do about it, that is really doable?
I don't believe that making the wealthy poorer somehow makes the poor wealthier. You want to tax the rich's income at a higher rate, fine, I'm ok with that. But using that money to create new entitlements is not the way to go in my opinion. I know you disagree but that's ok. I'd use it to pay down the debt or with interest rates rising, maybe pay the increased service that comes with higher interest in the debt. Want to tax wealth? Good luck with that. I don't think there is sufficient political will to ever get that done on a long term basis.
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Yes, but my bias is based in fact.
Do you think I was born with $millions in stock? Or do you think I was only able to buy stock because I had a boatload of disposable income?
I never said anything about taxing wealth. Or raising taxes to create new social programs.
All I'm saying is that for most people in country the stock gyrations don't really mean anything.
Also anytime you support policies that encourage companies to pump their stock price up like stock buybacks you are supporting policies that predominantly benefit the wealthy.
I watched Powell this afternoon. I watched the stock market go nuts. The bond market sold off, raising yields late in the day extremely fast as Powell mentioned that inflation was actually worsening. And yet, he once again said nothing substantive on policy -- more wait and see. He did lament the hardship for people on fixed incomes, and those who spend most of their income on food, energy, and housing.
Powell has an impossible choice to make. He can pretend that mounting inflation will just go away through some kind of miracle increase in productivity, while those people suffer further. Or he can do the bidding of the wealthy and his handlers in government, offering little but lip service and token rate increases on inflation.
Let's not kid ourselves. Restoring the supply chain is not a productivity increase relative to the pre-pandemic era, which also saw a more sane energy policy/prices. Even if supply issues could be resolved quickly how could this stop inflation with such a mammoth increase in the money supply? You'd think Biden might back track on his bad energy policies amid what is becoming an emergency for marginal people. But no. He just made the Fed in charge for inflation control, while blaming a lack of competition as the root cause.
With either choice Powell and members of Congress have to live with themselves. They are making people on fixed incomes pay for this by creating hyperinflation. Pensions will be evaporated. Even the CPI will not cover adjusted incomes.
Powell was asked if he and government went too far. He defended government and said he will wait to see how history views this period.
To me the math simply does not add up, even if Russia and China behave themselves. History will see it the same way it currently sees the 1970s, at best.
Powell has an impossible choice to make. He can pretend that mounting inflation will just go away through some kind of miracle increase in productivity, while those people suffer further. Or he can do the bidding of the wealthy and his handlers in government, offering little but lip service and token rate increases on inflation.
Let's not kid ourselves. Restoring the supply chain is not a productivity increase relative to the pre-pandemic era, which also saw a more sane energy policy/prices. Even if supply issues could be resolved quickly how could this stop inflation with such a mammoth increase in the money supply? You'd think Biden might back track on his bad energy policies amid what is becoming an emergency for marginal people. But no. He just made the Fed in charge for inflation control, while blaming a lack of competition as the root cause.
With either choice Powell and members of Congress have to live with themselves. They are making people on fixed incomes pay for this by creating hyperinflation. Pensions will be evaporated. Even the CPI will not cover adjusted incomes.
Powell was asked if he and government went too far. He defended government and said he will wait to see how history views this period.
To me the math simply does not add up, even if Russia and China behave themselves. History will see it the same way it currently sees the 1970s, at best.
I first purchased stock when I was 16 years old. I used paper route money. I had a modest income during the early part of my career but I always lived below my means and saved/invested a minimum of 10%.
It's amazing that Biden blames big companies/lack of competition for inflation. The size of the companies and level of competition was exactly the same when inflation was < 2%.
The SEC's decision to make this shift came against the backdrop of President Ronald Reagan's era of deregulation and coincided with the rise of 'free market' economists preaching a new type of social responsibility for business: increasing profits.
According to all knowing internet, you’re in top 10% with net worth of $1.219 million.
Stocks matter to far more than 10 per cent of the population.
Many, many people (well over 100 million and I've seen 145 million mentioned here) participate in the stock market, many through employer plans such as the 401-k.
And regular contributions to such plans can have a major long-term economic benefits to the millions who participate. So market changes are very important to far more than you acknowledge.
@rumble_lion , I (and many others) get tired of the way you twist language, fail to acknowledge basic facts, demean the opinions of others, and lie.
According to Gallop 56% of Americans own stocks. Seems pretty significant to me.
Why would I have hurt feelings for pointing out your dishonesty?
I'm not the only poster who has noticed.
Also known as insider trading, which is supposed to be illegal.
A $1 million net worth gets you into the top 10% of net worth. That's not a high bar. A lot of people have that in just real estate
Also, everyone with a defined benefit pension is getting their benefits from a fund invested in stocks.
I'd bet that quite a few posters on here fall into that 10% category. Maybe even some of those who rail against the wealthy in this country
I would certainly hope so. I assume that most are college graduates middle age and higher.
In fact, anybody making ~$75k who puts 10% into their 401k for 30 years should retire with a $million nest egg.
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Not for congress critters. They made an exception for themselves. All they have to do is report their stock buying/selling and I think they have 30 day window to do that. Oh and if they fail to report their trades then I think it's a 200 dollar fine.
according to data, 11.8% of american households had a net worth of $1,00,000 or more in 2020 (about 15.3 million households)
To be in the 1%, you only need a net worth of a little more than $11 million.
Median household net worth is $121,411
Also, I wouldn't expect too many 25 year olds just starting their careers to be millionaires. They should care about the market because that's how many are going to become millionaires. I would definitely expect a lot more "investment" millionaires as they approach retirement.
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Just don't get divorced. I've know multiple enginners who were well on their way to be a high net worth couples only to get knocked back significantly due to divorce. When the bitch gets half, that's hard to bounce back from and god forbid you are in a state that requires alimony.
Sometimes it's the husband that was a jerk. But yes, alimony & child support can be a killer.
Markets way up at the close. I read this as a sign that the market believes Powell will give inflation lip service. It was a Friday afternoon with Russia likely to invade the Ukraine at any time. Apparently the markets believe The West will be passive. I am not surprised. Just a group of weak socialists, now to include the USA.
I would think the vast majority of Americans would not want to sacrifice any US soldiers lives for Ukraine.
? Did you really just say that out loud?
Let me give you a quick education on investments. Cheap money (low interests rates) increases speculation, while more expensive money reduces speculation. It’s that simple.
That's true, but this isn't really about sacrificing American life. It's about what the USA and Europe (NATO) will do about blatant aggression from Russia.
It's the perfect time for people like Putin to act. The problem is that it could start WW3.
I had written a long explanation as to why this is so dangerous, and likely, but decided not to share it. Books will surely be written if my fears ring true, and some form of a free humanity survives.
WW1 started over a political assassination. In relative terms, at the time, one would have thought it insignificant with respect to global stability.
WW2 was started over the unresolved problems left over from WW1.
Same with WW3. There have been residual problems left over from WW2.
Quite true, but you may be laboring under the comfortable but outdated opinion that our country is still a functional democracy where the views of the vast majority of the population have some bearing on the policy of the government. That's not the case.
That's true, but this isn't really about sacrificing American life. It's about what the USA and Europe (NATO) will do about blatant aggression from Russia.
At the very least I assume they deliver a very strongly worded letter to Putin.
There have been residual problems left over from WW2.
The problems have been around since 1945?
The markets are trying to decide if the correction is over, and even if it is not, where inflation will take it. It is going to swing wildly over the next few months.
