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If there were valid solutions to the economic crisis, why wouldn’t the involved parties use them?
Well, there are valid solutions that will work and some that will work quickly. So, why not put them into action immediately? It can’t wait for a new administration to take over, pick out the drapes and choose bedrooms in the White House.
I was surprised to learn that over 80% of the investors in the markets are moving huge blocks of investments because they are institutional players rather than individuals. That makes this situation and the things that can be done about it, a very different situation than during the Great Depression.
In fact, maybe this one can be called the “Incredible Depression” since so many people involved in helping to create it and profit from it are incredibly resourceful until it comes time to fix it. Then, I differ when it comes to calling a thing what it is.
There are often people being asked for opinions that have no good reason to accurately reflect the facts about the situation. When the game continues, they make money – so why wouldn’t they want everyone to have the opinion that nothing is really wrong at all?
Unfortunately, the truth is that a company’s value is not inherently created by the value of its stock nor by the dividends it pays – but by the underlying products and services which established the company in the first place. Without that, the corporations selling stocks, bonds, credit swaps, leveraging and every other play is no more than a pretense.
And, that is the real problem we face.