It's More Fun Watching the Stock Market Plunge than Political News

[Ronin]

And for those that think precious metals will be their savior, think again, for this industry it tightly controlled as well.

You are correct, but gold will always have intrinsic value. World banks may flood the market with gold, but in the end you will come out ahead.

My understanding is there is a difference between gold held in your hand and gold bought on the market (dollar pegged). Would you disagree?

The way I see it buying junk silver and gold (Eagles) is more insurance than investment.

 

[michaelwise]

You are correct, but gold will always have intrinsic value. World banks may flood the market with gold, but in the end you will come out ahead.

My understanding is there is a difference between gold held in your hand and gold bought on the market (dollar pegged). Would you disagree?

The way I see it buying junk silver and gold (Eagles) is more insurance than investment.

Buying gold and silver is the only way to protect yourself from the plague of the Federal Reserve.

 

[an.old.analyst]

My joy or sorrow for the crash has no influence over the wealth destruction that is occurring.

Wealth is NOT being destroyed, it is being TRANSFERRED to the most wealthy people on the planet....and this is what you celebrate???

I may as well enjoy watching it occur, as it is the only thing that will stop our leaders from continually sticking it to the majority of the people. It will be painful as the system crumbles, but it is necessary for the proper repair to occur.

Who do you think is behind this decline? This is the exactly the mechanism they require to increase their power and control.

Have you not learned anything from Ron? Please go back and get more educated, because you are humiliating yourself and anyone else who posts here in agreement.

 

[Jman1034]

When a prairie gets too big, they use a brush fire to set it back and regenerate it as in nature (lightning strikes, heat..etc). When a tree gets too big, it gets pruned generally.

America is inflated with corruption, artificial lies and it needs a good reality check for the sheeple to wake up and take their country back.

 

[michaelwise]

Wealth is NOT being destroyed, it is being TRANSFERRED to the most wealthy people on the planet....and this is what you celebrate???


Who do you think is behind this decline? This is the exactly the mechanism they require to increase their power and control.

Have you not learned anything from Ron? Please go back and get more educated, because you are humiliating yourself and anyone else who posts here in agreement.

The total value of residential real estate in the US was about $20 trillion at the top. Now down about 10% according to Case-Shiller index, that's $2 trillion of wealth destruction so far. Who was the $2 trillion transfered to? No one, it just disappeared. That's why they call it Wealth destruction.

I think you need to get a clue.

 

[Ronin]

The total value of residential real estate in the US was about $20 trillion at the top. Now down about 10% according to Case-Shiller index, that's $2 trillion of wealth destruction so far. Who was the $2 trillion transfered to? No one, it just disappeared. That's why they call it Wealth destruction.

I think you need to get a clue.

Coudn't it be argued that this wealth is transferred to the bankers. I mean my house is worth %20 less than I bought it for yet I still have to pay for my mortgage in full. My wealth/equity is destroyed, but the bank's is not. Doesn't that give them a net gain in a falling economy?

 

[grizzums]

The total value of residential real estate in the US was about $20 trillion at the top. Now down about 10% according to Case-Shiller index, that's $2 trillion of wealth destruction so far. Who was the $2 trillion transfered to? No one, it just disappeared. That's why they call it Wealth destruction.
.

That was simply a wealth mirage to begin with, and until people start looking at their homes with a mortgage as a liability instead of an asset that deceptive wealth mirage will continue.

 

[michaelwise]

Coudn't it be argued that this wealth is transferred to the bankers. I mean my house is worth %20 less than I bought it for yet I still have to pay for my mortgage in full. My wealth/equity is destroyed, but the bank's is not. Doesn't that give them a net gain in a falling economy?

It's sad that so many good people got caught up in this mess, but now it has become socially acceptable to do a voluntary foreclosure and just mail the keys back to the bank. People in my neighborhood can rent the same type house next door for 1/3 the cost of their mortgage, or buy the house next door for 50% less than 3 years ago.
Nothing wrong with cutting your living expenses this way and taking a hit to your credit rating for a while. It's just a good business decision.

 

[constituent]

This is one of the most despicable posts I've seen at this forum. Market decline does not result in the loss of wealth, it creates huge wealth transfer, typically from those who cannot afford the loss to those who do not need the gains. This is the destruction of our middle class, which is what keeps elite power in-check.

You are applauding this current economic event because it appears you have some sick wish to punish those who do not understand its true cause or the appropriate remedy. What you, yourself don't seem to understand is that the JOKE is on you as well. And for those that think precious metals will be their savior, think again, for this industry it tightly controlled as well. There is no escape from this...NONE.

i guess he doesn't subscribe to the idea that markets are the cure to these larger social/class issues.

maybe guns are the only way?

i don't think so, but i know that many do...

and who could blame them?

the markets, for most, are like a casino where the dealers
are magically fed the exact card they need to win, when it counts...

i mean, come on, you've seen the clique western film scene where
one fella realizes the other fellas been cheating at cards, and what
takes place thereafter.

right now, a lot of folks out there see the market crash as the realization
that the other guy is cheating...

i doubt that many hope for a violent reaction, but certainly a reaction...

even just walking away.

but many people have to be shocked into doing something...

the real question is how will that something be guided, how could
it be prevented?

do tptb want to prevent it?

 

[Blowback]

The total value of residential real estate in the US was about $20 trillion at the top. Now down about 10% according to Case-Shiller index, that's $2 trillion of wealth destruction so far. Who was the $2 trillion transfered to? No one, it just disappeared. That's why they call it Wealth destruction.

I think you need to get a clue.

That's not wealth destruction. The "wealth" is still there because the "wealth" is the house. The "wealth" is transferred to people who have dollars because it now takes less dollars to buy your house. It is also transferred to anyone who has an asset that has increased in dollar value while your house decreased and as such have more dollars to buy your less expensive house.

Even though your house is worth less, assuming your salary stays the same, you will have to work the same amount of time to pay off a house that is the same house but will require less of someone elses time to now purchase with dollars.

As such, the wealth is not destroyed but transferred. Dollars are however being destroyed and that is what is transferring wealth to people who have dollars or other assets that have increased in the terms of dollar value.

That is why cash is king during a deflationary depression. During an inflationary depression, gold is king because gold is money. The FED dances a fine line but it will be depression regardless and therefore bad for everyone. My money is on an inflationary depression currently.
At least that is how I see it at the moment.

 

[Henry]

And for those that think precious metals will be their savior, think again, for this industry it tightly controlled as well. There is no escape from this...NONE.

Anylyst,

As a result of the Fed’s policies making traditional methods of saving money (saving account’s, Cd’s, etc. etc.) not an option, coupled with the fact that you think precious metals are also suspect. Where do you recommend the average person position any of his or her savings?

Thanks,
Henry

 

[an.old.analyst]

The total value of residential real estate in the US was about $20 trillion at the top. Now down about 10% according to Case-Shiller index, that's $2 trillion of wealth destruction so far. Who was the $2 trillion transfered to? No one, it just disappeared. That's why they call it Wealth destruction.

Well, you just answered my question. As least your not embarrassed to show your ignorance..

With respect to your lastest comment:

1. This "index" refers to dollar value of residential real estate market, which includes deflation of dollar thru Fed doubling money supply over last 6 years. The $2Trillion was not real wealth, it was never really gained, so it was never really lost. The market was artificially inflated. Its part of the shell game that is being played.

2. Ownership of that residential real estate, the real wealth (i.e. private property), will now go to foreign holders of that debt. That's the transfer.

Who give a damn what the dollar value representation of a hard asset is. The game is to own and control the asset. Paper dollars can be printed and destroyed, they're meaningless. One doesn't evaluate wealth in terms of paper.

Watch how America's hard assets are going to transfer to huge foreign interests...it's already been happening. This is how countries are taken over.

And you are applauding it.

 

[manny229]

Anylyst,

As a result of the Fed’s policies making traditional methods of saving money (saving account’s, Cd’s, etc. etc.) not an option, coupled with the fact that you think precious metals are also suspect. Where do you recommend the average person position any of his or her savings?

Thanks,
Henry

+1

 

[PaleoForPaul]

Hmm, if the monolines get downgraded again, the market is probably going to get a lot worse...

http://www.reuters.com/article/companyNews/idUSN0532243020080205

 

[Elliott]

Gold is below $900.

Buying opportunity?

I think so. I've been telling people that for two years now though. It's added 60% over that time. ...and I think it's going to continue. Plus, I'd recommend getting out of dollars. Part of it is not so much that gold is going up, but rather that the dollar is tanking.

I'd also take a long position in some nuclear bombs.

 

[JeffSchulman]

any stock traders here? teach us how to short stocks

Open a margin account with options access and then buy put options (and watch them VERY closely.)

 

[Henry]

Open a margin account with options access and then buy put options (and watch them VERY closely.)

At least that will save me the plane ticket to Vegas!

 

[Ronin]

Plus, I'd recommend getting out of dollars.

Let me pose this. I've got a 401k that limits me to certain funds. The two most conservative are bonds and a money market/cash fund. I've moved everything to cash, so here are my options:

1. Leave it in cash
2. Take a loan on half and buy something else (gold?). Interest I pay to myself.

Any financial guru's could maybe give me some advice.

 

[grizzums]

Open a margin account with options access and then buy put options (and watch them VERY closely.)

Put options on what?

Please don't tell someone to do that when they are brand new to the markets.

First, no competent broker (discount or not) would allow someone with no or very little experience in the market to trade options. At least they shouldn't.

You don't just go buying securities or derivitives betting one way or another because someone tells you too...you çertainly do not get involved in something that you do not understand as well as have a sound stategy. That's a sure way to lose all your money.

 

[an.old.analyst]

Open a margin account with options access and then buy put options (and watch them VERY closely.)

I wouldn't touch that option unless I was an extremely experienced investor.... and with the PPT pumping up the market, this is unbelievably risky. Options leverage your dollar investment, so when you win you can win big, but when you loose you can loose way more than your investment amount, and your broker will be quick to call you on that loss.