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1929 - Could History repeat itself
phlash
Posts: 883 Forumite
I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)
That also means I cannot share in any profits from any decisions made!;)
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Comments
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Yes - I've seen a number of these articles recently, quite worring. A number of Economists think that most kind of investments (not just the property market) are in a speculative bubble. I'sdbetter go and stuff my 'hard earned' under the mattress!!!0
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Generali's Opinion
You have to remember, the chances of this sort of quasi-apocalyptic economic meltdown are remote at best. We know that from our experience - how many times have you stood out with a sign saying 'will work for food'?
1929 in the US and the Lost Decade in Japan were both times of great economic distress for many. However, both were exacerbated by policy mistakes, both fiscal and political.
There is a good chance that a lot of asset markets (including housing) are experiencing a bubble that has resulted from lots of easy credit and generally good economic conditions world wide (only Lebanon and Zimbabwe are in recession at the moment I believe).
Those bubbles popping (if that's what they are) will cause economic pain of course but my guess is that things won't be any worse than the recession of the early 90s - our living standards would drop back to those of 10-15 years ago. There will be lots of examples of individual pain (holders of leveraged, illiquid assets for example) but overall it's incredibly unlikely that we would experience a full-on financial disaster like the US did in the 1930s.0 -
You could argue that the internet will possibly create more panic selling...But I wont;)
I think he's refering to the stock market crashes in October 1987 that were exacerbated by prices hitting stop losses and causing automated selling to occur.
Rules (such as markets being suspended if falling quickly) have been introduced subsequently.
If execution only brokers don't want to take any more orders in a rapidly falling market I suspect you'll find 'the website is down' and 'we're enagaged on another call right now'.0 -
Is that linked to the other forms of control I have alluded to Gen?Whenthemusicstopsmakesureyou'renotleftstanding0
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Not sure sortofok.
There are a few measures that are taken in the case of rapidly falling stock markets, mostly to do with stopping prices from falling too far, too fast and causing a panic. Examples are only being able to sell short on an uptick, suspending markets that are falling quickly and limiting automatic trading.0 -
Not too heavy on the jargon mate.
I invest in the stockmarket (various funds) but don't trade directly.
I pay someone else to do that.
Whenthemusicstopsmakesureyou'renotleftstanding0 -
Not too heavy on the jargon mate.
I invest in the stockmarket (various funds) but don't trade directly.
I pay someone else to do that.
Sorry.
Basically, if markets fall fast the authorities call a time out. Also, you can only make a bet that a stock will fall in value if it's just risen in price.
The rest roughly translates as 'blah, blah boring technical stuff'.0 -
I think we should start worrying when these articles stop i.e. when everyone thinks everything in the gargen is rosey.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
I think we should start worrying when these articles stop i.e. when everyone thinks everything in the gargen is rosey.
Do you not get the feeling most people think everything is rosey?? We are in a "miracle economy" afterall.I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0
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