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Not everybody is a failure.
But they shouldn't expect to be bailed out if they pick a loser.
:shock:
Late 19th century home prices: look it up.
Where have i said this? Link please:2wave:
You allude to it:
Even Toyota is reporting record losses (for the first time in their history). It sounds nice in theory, but in practice mass liquidations will create utter chaos.
The only way to avoid this "chaos" is with bailouts.
The economy is run on credit, nearly all business operations are funded on short term credit. Your lack of knowledge of how the real economy works dilutes your arguments for free markets. Credit is everything.
Credit is not gone, just hard to come by, as it should be during a correction.
During the great depression, the country faced a massive deflation. Because the Fed at the time pulled money out of the economy, real recovery took nearly two decades. Now there is a massive deflation of assets that use financing (credit) to purchase and produce. Tightening of credit will cause prices to fall even further (just like the GD). There is no reason for this to happen.
Do you have any idea how much inflation there was in the 20's that led to the crash, or do I need to pull out America's Great Depression?
And this leads to inflation right:roll: BTW, a bubble is extreme overvaluation in which the exit from the market is unattainable for the majority of investors.
And malinvestment. Malinvestment causes the bubble.
My parents did not make or take bad loans, and can pay their debts just fine. Why should they have to feel the brunt of this pain: because of the stupidity of a few, and the fraud of even fewer? Get your head out of the clouds and take a peek at reality.
If they had their money in stocks then they took a risk. They should not be spared no matter how you portray it. There is a risk in stocks and they should have realized that.