Stock market bubbles bursting;

Stock market bubbles bursting;

PostBy: jeromemsn On: Thu Jan 07, 2010 3:28 pm

Well we have seen the Dot Com Bubble burst, The Real Estate bubble burst, Banking bubble burst. Oh I know there are more bubbles that have burst but these are ones that we all know and love.
So what do you think the next bubble to burst will be? My money is on Government money in the stock market bubble bust! There not going to be able to keep tossing money in the market forever, I don't care what Barney Franks says. I know what I say and thats, "We Broke so leave us alone!"
So lets here what you think will be the next bubble to pop!
jeromemsn
 
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Re: Stock market bubbles bursting;

PostBy: cabinover On: Thu Jan 07, 2010 3:58 pm

I don't know but I sure hope that I can pull my little bit of savings out of the market before it crashes again. Not a millionaire yet, maybe another 500 years or so and I'll be able to have champagne with Warren Buffet.

The up side is we've gained about 33% since April of last year. Now if we could have only borrowed about 3 million to start we'd already be millionaires. :roll:
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Re: Stock market bubbles bursting;

PostBy: WNY On: Thu Jan 07, 2010 5:13 pm

I am finally back up to where I was a year ago in my 401K (down 21%, but up 41%!!)...hope it stays for a while....
WNY
 
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Re: Stock market bubbles bursting;

PostBy: Black_And_Blue On: Thu Jan 07, 2010 6:51 pm

Read Karl Denninger http://market-ticker.org/

Zero Hedge http://www.zerohedge.com/

Denninger covers the pending mortgage bomb that has been delayed here : http://market-ticker.org/archives/1811-HAFA-Foreclosure-Warning-Dead-Ahead!.html

Another good read http://www.businessinsider.com/eric-sprott-the-fed-is-a-ponzi-the-treasury-purchase-data-is-a-lie-2009-12

There is plenty of indications available for those who care to look.

"The eye sees a thing more clearly in dreams than the imagination awake."
- Leonardo Da Vinci
Black_And_Blue
 
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Re: Stock market bubbles bursting;

PostBy: bear creek burnout On: Thu Jan 07, 2010 7:07 pm

Always remember.....average returns vs actual returns.......
If your account is up 100% one year and down 60% the next year you made 40%.....that's a 20% average
100% minus 60% equals 40% divided by 2 years = 20% average....
But once you apply money to the formula it looks like this....
$100 X 2 = $200 (100% gain year one)
$200 X 40% = $80 (60% loss year 2)
You begin with $100 and end with $80....so where's the 20% gain?
Now instead of a 20% gain you have a 20% loss....using the same figures.....
Math is not money & money is not math...... :idea:
All markets will eventually return to their true value....that's why bubbles burst...they always have & always will....
bear creek burnout
 
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Re: Stock market bubbles bursting;

PostBy: sterling40man On: Thu Jan 07, 2010 10:05 pm

WNY wrote:I am finally back up to where I was a year ago in my 401K (down 21%, but up 41%!!)...hope it stays for a while....


Same here. Looks like things are looking up. :D
sterling40man
 
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Re: Stock market bubbles bursting;

PostBy: cokehead On: Thu Jan 07, 2010 11:51 pm

I didn't think the DOW could stay over 10,000. I bought 2500 shares of SDS cost basis $39.184. I'm getting creamed. I thought I was so smart playing the dark side. I should of stayed in PCX or BTU! Timing the market is tough. I was up 180% from 13 months ago but not any more. Living paycheck to paycheck keeping up with the margin calls (I was blind-sided by the margin requirements being changed from 60% to 30 % after I did the deal.) and worrying about taxes coming due. My timing buying SDS was all wrong. The only reason the market is as high as it is is the Fed is keeping interest rates low under political pressure. Sooner or later the market has to fall based on the fundimentals but there is no where else to put money if you have it other than the stock market (low interest). At this point I'm hopping to just get my money back. The Chinese have chastized the Fed for their policies and themselves are raising interest rates. The only reasong the Fed can abuse the US dollar is because it is a world reserve currency. If they keep it up that will change. If I had any money left I'd buy Chinese currency. Sooner or later they have to unpeg from the US dollar and when they do look out. Isn't it ironic that a "communist" country would have more economic sense than the bastion of capitalism! (Either) we have children running our country (or they want a crisis to further their goals). I don't think they see the end game. Too worried about the next election. Maybe they don't care about the end game so long as they are calling the shots. IF hyper inflation is the result of the goverment and Fed policies I'm wiped out. :shock: There is no frigin way the government can finance the current rate of deficit spending into the future. I can't wait for 2010 elections.
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Re: Stock market bubbles bursting;

PostBy: samhill On: Fri Jan 08, 2010 9:04 am

I`m not saying that there isn`t graft & greed in China, but you see what happens to CEOs over there when they get caught embaressing mother China. Give you a hint, they aren`t around to run another company into the ground & even the ones that do good don`t get the salaries yet alone the bonuses like the U.S.
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Re: Stock market bubbles bursting;

PostBy: cabinover On: Fri Jan 08, 2010 10:50 am

I have no problem with the way China disclipines their criminals. Look at the lad caught adultering baby formula and milk. He won't do it again that's for sure!
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Re: Stock market bubbles bursting;

PostBy: cokehead On: Fri Jan 08, 2010 7:00 pm

The debt bomb will go off eventually and we are going to be so deep there won't be any fixing it. The $64 question is when. Maybe that is why the Mayan calander ends December 21, 2012!
cokehead
 
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Re: Stock market bubbles bursting;

PostBy: topper On: Fri Jan 08, 2010 7:14 pm

use the power of compunding interest to beat inflation over the long term - time is your friend - market timing is your enemy
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Re: Stock market bubbles bursting;

PostBy: Cap On: Fri Jan 08, 2010 7:15 pm

The US has more oil in the ground than the Middle East. We'll be forced to begin tapping it and turn it around and pay down this nonsense spending & debt. Do I really believe it we'll tap it? I believe the oil is there but I don't believe our leaders are smart enough to turn it into money to help us, the American. But it will some day help the stock market rise.
Cap
 
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Re: Stock market bubbles bursting;

PostBy: samhill On: Fri Jan 08, 2010 8:25 pm

We won`t pay back any country any faster than we have ever if ever been paid back for money that we have lent or given to every country on this planet.
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Re: Stock market bubbles bursting;

PostBy: bear creek burnout On: Fri Jan 08, 2010 11:10 pm

use the power of compunding interest to beat inflation over the long term - time is your friend


The miricle of compound interest....the 8th wonder of the world....but add taxes to the mix and you're in a losing game....
Double a penny every day for one month....31 days....and you'l have $10,737,418...from a penny in only one month...
BUT.....in a modest 20% tax bracket your $10 million is reduced to.......$455,172.....
You just lost more than 95% of your compounding.....
Compound interest.....Compound taxes....
bear creek burnout
 
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Re: Stock market bubbles bursting;

PostBy: jpete On: Tue Jan 19, 2010 10:49 pm

topper wrote:use the power of compunding interest to beat inflation over the long term - time is your friend - market timing is your enemy


You can't beat inflation. They doubled the money supply in the past year or so. All our dollars are worth half. It's a losing game....
jpete
 
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