who killed the economy?!?!

[Flipx99 5,000+ posts]

I have no idea what New England did in the late 80's but I'll take your word for it. Are you talking about the housing market or investment market?
But I would challenge you by saying that people that bought at the height of anything fall into my category of people making bad decisions.

And of course I will obviously state that nothing is ever always true. There's always going to be an anomaly.

The housing market....people act like this is the first time this has ever happened.

I think you know about anomolies...but remember those who read may not understand those implicit assumptions and think the housing market will always go up.

 

[RangerMan Premium Member]

I have no idea what New England did in the late 80's but I'll take your word for it. Are you talking about the housing market or investment market?
But I would challenge you by saying that people that bought at the height of anything fall into my category of people making bad decisions.

And of course I will obviously state that nothing is ever always true. There's always going to be an anomaly.

So the people who invested in Enron were idiots, according to you? With any investment you make, you expect to get some sort of return, hopefully greater than the inflation rate. Things happen, but that does not make people idiots, at all.

 

[duece212 5,000+ posts]

So the people who invested in Enron were idiots, according to you? With any investment you make, you expect to get some sort of return, hopefully greater than the inflation rate. Things happen, but that does not make people idiots, at all.

On that one hopefully people recognize that any investment has risk, no matter how small that risk is, nothing is guaranteed money.

Not sayin that situation wasn't uber shitty, just goes to prove the risk some people forget about.

 

[Flipx99 5,000+ posts]

So the people who invested in Enron were idiots, according to you? With any investment you make, you expect to get some sort of return, hopefully greater than the inflation rate. Things happen, but that does not make people idiots, at all.

The people who sold short weren't...

I dunno. On one hand I think that the janitors and receptionists had no understanding of diverfication. On the other hand, see the sig to see how I really feel about diversification.

 

[Banana Balls 5,000+ posts]

If you understand economics so well, then why claim that a 33% unemployment rate is when we should get worried. What you are saying is that when we are a third world country, we should be scared.

I was embellishing for the point of the matter. I'm sorry for that not coming across in the post.

As for the economics professor statement...they have spent the majority of their working lives studying the economy. They know what is good for the economy, and what isn't. They certainly know what is better for the economy than someone on the internet forum making insanely uneducated statements.

Well, my attempt was not to get you all worked up, but I see that has unfortunately happened. As I stated earlier, I am simply trying to understand what makes you define the current situation as such a bad recession. In order for me to understand why, I need to ask questions and do 'what if's'. Because honestly, I don't see today being any different than July 10th of 2007 or 2006.

And obviously you live in Martha's Vineyard, because as well off as my family is, gas prices are still something to complain about, and have been for the last 2 years.

I do not live in Martha's Vineyard but I can understand why you would make that jab. Yes, everyone has been complaining about gas prices for years. That is the exact reason why I made that statement. Although gas has been increasing at a steady rate over the last couple of years, now is the time it is destroying lives?

This is purely basic economics in its simplest form...

I guess you're getting offended or something. It wasn't intentional. I'm just digging to understand another point of view.

 

[RangerMan Premium Member]

The people who sold short weren't...
I dunno. On one hand I think that the janitors and receptionists had no understanding of diverfication. On the other hand, see the sig to see how I really feel about diversification.

What I meant was, as a potential investor, Enron stock looked great, because of the manipulation of their financial statements...sorry, should have explained better.

 

[GearGuy2001 10+ year member]

What I meant was, as a potential investor, Enron stock looked great, because of the manipulation of their financial statements...sorry, should have explained better.

Yeah I watched the movie "Enron: The Smartest Guys in the Room"

It was pretty interesting how they stated their earnings without having to prove anything.

 

[Flipx99 5,000+ posts]

Yeah I watched the movie "Enron: The Smartest Guys in the Room"
It was pretty interesting how they stated their earnings without having to prove anything.

twas a good movie.

 

[RangerMan Premium Member]

I was embellishing for the point of the matter. I'm sorry for that not coming across in the post.


Well, my attempt was not to get you all worked up, but I see that has unfortunately happened. As I stated earlier, I am simply trying to understand what makes you define the current situation as such a bad recession. In order for me to understand why, I need to ask questions and do 'what if's'. Because honestly, I don't see today being any different than July 10th of 2007 or 2006.

I do not live in Martha's Vineyard but I can understand why you would make that jab. Yes, everyone has been complaining about gas prices for years. That is the exact reason why I made that statement. Although gas has been increasing at a steady rate over the last couple of years, now is the time it is destroying lives?

I guess you're getting offended or something. It wasn't intentional. I'm just digging to understand another point of view.

I'm not offended, just extremely agitated in trying to explain to you why and how this is a recession. I guess this will be my last attempt.

Lets say you take everything you own and sell it right now. Then, you move to Europe and exchange your American dollars for Euros. Do you know how drastically your standard of living would change? The American dollar is horribly weak...another sure sign of recession.

I have studied business and economics almost every day for the past 4 years in some form or fashion. I read every article I can find pertaining to the economy and personal finance. Its just one of my personal interests...in the past 6 months, I have found no economist that has claimed that this is not a recession.

 

[Banana Balls 5,000+ posts]

The housing market....people act like this is the first time this has ever happened.
I think you know about anomolies...but remember those who read may not understand those implicit assumptions and think the housing market will always go up.

That is exactly my point.

Isn't a recession defined by both ends? Wouldn't we have to 'come out of this' for it to be a recession? If things stay they way they are, maybe we have hit an equilibrium that people need to actually go out of their way and adjust to.

So the people who invested in Enron were idiots, according to you? With any investment you make, you expect to get some sort of return, hopefully greater than the inflation rate. Things happen, but that does not make people idiots, at all.

No, the ones that put all of their eggs in one basket were idiots. But that is just my opinion. I don't invest in any one thing heavily.

 

[RangerMan Premium Member]

Yeah I watched the movie "Enron: The Smartest Guys in the Room"
It was pretty interesting how they stated their earnings without having to prove anything.

Great movie...and how they got away with what they did was nothing short of brilliance, however, they just didn't know when to stop.

 

[Flipx99 5,000+ posts]

That is exactly my point.
Isn't a recession defined by both ends? Wouldn't we have to 'come out of this' for it to be a recession? If things stay they way they are, maybe we have hit an equilibrium that people need to actually go out of their way and adjust to.

No, the ones that put all of their eggs in one basket were idiots. But that is just my opinion. I don't invest in any one thing heavily.

That would be called a structural shift....

Warren Buffet is an idiot? He made $$$$$$$$$$$$$$$$$$$$$$$$$ by putting all eggs in one basket.

 

[RangerMan Premium Member]

No, the ones that put all of their eggs in one basket were idiots. But that is just my opinion. I don't invest in any one thing heavily.

Well yeah, any investor that doesn't diversify is of course not making a wise choice, it can work, but chance of failure is of course greater; but what if they also invested in the housing market, Adelphia, and the numerous other businesses that went under.

 

[Banana Balls 5,000+ posts]

Lets say you take everything you own and sell it right now. Then, you move to Europe and exchange your American dollars for Euros. Do you know how drastically your standard of living would change? The American dollar is horribly weak...another sure sign of recession.

I know. Gas is way more expensive over there than it is here.

I have studied business and economics almost every day for the past 4 years in some form or fashion. I read every article I can find pertaining to the economy and personal finance. Its just one of my personal interests...in the past 6 months, I have found no economist that has claimed that this is not a recession.

NOW I understand why you take such offense and don't even want to entertain even looking at the grass on the other side.

I just wanted a 'why' and you don't want to give it to me so I concede and will stick to conversing about television with you. //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

 

[duece212 5,000+ posts]

Well yeah, any investor that doesn't diversify is of course not making a wise choice, it can work, but chance of failure is of course greater; but what if they also invested in the housing market, Adelphia, and the numerous other businesses that went under.

Or what if your company comprised your 401k of many shares of the companies own stock if you didn't go in and adjust where the money went....thats pretty shitty