The stock market crash

[Taarna]

Is it that bad? Here's one vote for yes. China is hurting. They banned sales of stock. In China most of the investors are the people not the cooperations.

The EU is has Greece to float, and many nations have much debt. Every USA citizen owes $58,000 or so, but Europe things are worse.

In the UK that number is 160,000 per citizen. OUCH. In France its 86,317 per citizen. In Germany its 68,720.

So one major economy is crashing ( China ) and the major Nations in Europe are in debt, but the EU nations are taking care of the dead beats.

 

[DJ_KiDDvIcIOUs]

This is not a huge "crash", I believe most in the industry right now would refer to this as a "correction". We have had 7 years of rising stock prices since the end of the recession and those not familiar with how the markets work don't understand that it's just not possible to keep going up and up without a down tick. The average Joe here in the states kept seeing all this growth and thought it was a good time to get rich quick which is what always happens when the market has growth like that. Now if we drop another 10% and it holds that would be a bear market or a possible recession.

In regards to China, this is really their first foray into a market as a whole and with the inflated values that have been placed on their stocks they are long past due to level out and join us here in reality. The big problem with China's market is there are some real, fundamental problems with their market that could adversly effect the rest of the world. This will have less of an effect on markets like ours here in the states but the smaller countries that really depend on China for most everything could be put in a world of hurt.

The EU is it's own thing right now and has been heavily discussed over in the politics forums. I'm not very knoweldgeable on that front though.

In regards to everyone having debt, that's pretty much what the whole world runs on if you haven't noticed by now. That's what makes capitilism go round. All of these giant companies depend on somebody using their credit to buy their goods and then charging them interest. The real problem with economies as of late is the fact that all of these private banks hoard the money and don't keep it circualting in the world, especially at times like this. The top .05% like to keep it that way too

 

[Teelie]

It is as DJ said, not a huge crash despite appearances and I think a bit of a bitter taste of what could happen if all those people who hate "Made in China" got what they wanted and Chinese production declined (more than it has, which was part of the problem).

And as is being reported today, the smaller, "average Joe" investor is the one feeling this hit more than the larger players in the field are.

So let this be a lesson to everyone: Careful what you wish for. China took a hit in the stock market in part because it's production levels are lower than expected although it was also as said they had inflated values. But it comes out the same. If China crashes and burns it will impact the rest of the world.

 

[DeadPresident]

That awkward moment when people don't want to talk about how we've been in a depression since like '08.

 

[DJ_KiDDvIcIOUs]

That awkward moment when people don't want to talk about how we've been in a depression since like '08.

Well, I can't argue the semantics of these past 7 years or so being a depression it certainly isn't along the same lines as the one in 1929. Most of the Average Joe's nowadays don't have all their savings in stock like what caused the great depression. But much like back then the prices and values of the stocks are still being manipulated by the powerful to try and take advantage of the uninitiated so even though we have all the knowledge of the world at our fingertips there is still a sucker born every minute.

 

[DeadPresident]

Well, I can't argue the semantics of these past 7 years or so being a depression it certainly isn't along the same lines as the one in 1929. Most of the Average Joe's nowadays don't have all their savings in stock like what caused the great depression. But much like back then the prices and values of the stocks are still being manipulated by the powerful to try and take advantage of the uninitiated so even though we have all the knowledge of the world at our fingertips there is still a sucker born every minute.

Yeah, fair. I think it's slightly problematic though that they use the same indicators to determine a depression now as they did in '29. Purchasing power is decreasing and the amount of control banks have means people have far less economic freedom though the risks for a cataclysm like the '29 crash have been mitigated somewhat.

That was a case of an instant catastrophe, this current economic climate is a bit more of a slow burn. The relevance of how globalized and symbiotic economic wellbeing is is also erased when comparing '29 to present day.

The world's issue at the moment is that there are multiple mechanisms (banking structures around the world, most importantly) that keep people from achieving financial security but one can't dismantle those structures because then all the smoke and mirrors would come crashing down. It's a precarious position and alternatives need to be explored ASAP, consumerist society and all its enablers are on a sinking ship.

 

[DJ_KiDDvIcIOUs]

I agree completely

 

[chaseter]

I say we keep adding to our nation's debt because that house of cards will never fall.

 

[Teelie]

Our debt is not as bad as the media makes it out to be. Not that it isn't bad but the perception is far from the reality.

 

[Unbreakable Lex]

The world is in big trouble this year. I'm pretty worried and actively preparing for the worst. I just don't know what exactly I should be doing. The Bank of Scotland issued a warning to it's investors today to sell everything except high valued bonds. Most believe the global economy will finally fix itself this year from what should have happened in 2008 had the bailouts not occurred.

Stock up on your toilet paper and ammo. It's going to be a bumpy ride.

http://blogs.wsj.com/moneybeat/2016/01/12/rbs-warns-sell-everything/?mod=e2fbRBS

http://money.cnn.com/2016/01/12/investing/stocks-lose-1-trillion-2016/index.html

 

[Teelie]

All because the banks and the corporations got greedy.

 

[Erzengel]

I'm investing in Legos.

 

[Donner]

I'm a public servant so I'm safe in terms of employment, but my fiance is looking to buy a business. I'm pretty worried.

 

[Pink Ranger]

I'm investing in Legos.

Prestige products don't survive a depression. Megabloks are the future.

 

[Marvolo]

The world is in big trouble this year. I'm pretty worried and actively preparing for the worst. I just don't know what exactly I should be doing. The Bank of Scotland issued a warning to it's investors today to sell everything except high valued bonds. Most believe the global economy will finally fix itself this year from what should have happened in 2008 had the bailouts not occurred.

Stock up on your toilet paper and ammo. It's going to be a bumpy ride.

http://blogs.wsj.com/moneybeat/2016/01/12/rbs-warns-sell-everything/?mod=e2fbRBS

http://money.cnn.com/2016/01/12/investing/stocks-lose-1-trillion-2016/index.html

How exactly would this negatively effect someone like me who lives paycheck to paycheck?

 

[chaseter]

If you are seen as expendable when all these companies start tightening their belts...

Recessions affect everyone. Unfortunately it's most painful for the not rich because they have no cushion.

 

[Holiday]

Prestige products don't survive a depression. Megabloks are the future.

That is not a future I want to live in.