Wow OP you have no idea what you are talking about. You're 31 and actually believing the crap you see on TV and youtube. not to be a dick but what is your educational background? Most of what these "experts" are saying are based on speculation and are not considering what world economies are deeply invested into the success of the American economy.
my tip to you: Sell your 240, buy gold, exit forum.
Quote:
Originally Posted by JDM_Tuner
The economy runs off people spending their money, the more people that don't spend, the worse the economy will get. I've recently began studying the great depression and a factor to the depression was that everyone got scared and withdrew all their money from the banks causing them to close. Also in a recent study when the newspapers print positive things about the economy stocks usually go up more compared to when the news prints about "how bad the economy is" (supposedly). So I think that our economy is majorly based on ourselves, if we don't think it will get better and we start bailing on the dollar, the worse it will actually get.
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kind of.
The biggest problem with the great depression was that everyone was buying on margin. Stocks were doing so well that everyone wanted to buy more so they began purchasing stock on loans and banks jumped in on the action too.
Once stocks began declining everyone pulled out (haha) but some couldnt because they were invested on loans. so everyone just had to watch their money go down the drain.
and 1/3 of stock price is reaction to speculation, 1/3 is assumption of the price, and the last 1/3 is what the value currently is. kind of weird but it is what it is.