Wall St. investing...

[Shagly]

Show us the insider loop holes.

Time for another bubble burst.

 

[Colonel Hogan]

Show us the insider loop holes.

Time for another bubble burst.

What's the "bubble"? It's not that I disagree that the market might not be overvalued, but that's a lot different than a "bubble."

The 1999 - 2000 internet bubble was due to rampant speculation on the "value" of online companies in a brand new mechanism of electronic commerce. There was no past to assist in fixing appropriate values on those companies.

The 2007 - 2008 real estate bubble was the result of toxic lending practices, packaging of high risk mortgage derivatives and corrupt practices of ratings agencies with a woeful lack of oversight as to how those practices, packaging and ratings were made.

The point is, our last two major recessionary bubbles had very specific causes other than a normal cyclic market downturn.

What does your crystal ball tell you as to cause?

 

[Shagly]

What's the "bubble"? It's not that I disagree that the market might not be overvalued, but that's a lot different than a "bubble."

The 1999 - 2000 internet bubble was due to rampant speculation on the "value" of online companies in a brand new mechanism of electronic commerce. There was no past to assist in fixing appropriate values on those companies.

The 2007 - 2008 real estate bubble was the result of toxic lending practices, packaging of high risk mortgage derivatives and corrupt practices of ratings agencies with a woeful lack of oversight as to how those practices, packaging and ratings were made.

The point is, our last two major recessionary bubbles had very specific causes other than a normal cyclic market downturn.

What does your crystal ball tell you as to cause?

Insider trading and trading on the Cayman Islands.

 

[trysail]

What's the "bubble"? It's not that I disagree that the market might not be overvalued, but that's a lot different than a "bubble."

The 1999 - 2000 internet bubble was due to rampant speculation on the "value" of online companies in a brand new mechanism of electronic commerce. There was no past to assist in fixing appropriate values on those companies.

The 2007 - 2008 real estate bubble was the result of toxic lending practices, packaging of high risk mortgage derivatives and corrupt practices of ratings agencies with a woeful lack of oversight as to how those practices, packaging and ratings were made.

The point is, our last two major recessionary bubbles had very specific causes other than a normal cyclic market downturn.

What does your crystal ball tell you as to cause?

Valuation.

S&P 500 (2544.73):

Price/Book Value: 3.24× (2008: 3.26×, 2000: 5.25×)
Price/Sales: 2.21× (2007: 1.54×, 1999: 2.30×)
ROS: 10.6% (2007: 8.2%)

Lots of caution signals.





"Markets can remain irrational longer than you can stay solvent."

-John Maynard Keynes
​

​

 

[doowdniw]

What we need is a little more irrational exuberance.

 

[Shagly]

What we need is a little more irrational exuberance.

...or paid off lawyers.

 

[Hypoxia]

...or paid off lawyers.

And vast apertures, portals to Hell, into which to shovel vast piles of effectivo, filthy lucre, cash and negotiable bonds, oh yeah baby, pour it on down, down, down, Satan still hungers for more...

The financial establishment is diabolical, demonic, Hell-bound, right? Love of money is the root of all evil, right? Enriching them only encourages them to attain even greater evil, right? Why not start the exorcisms now? Burn down Wall Street and all the Valleys of the Shadow of Cash. Lynch the bankers and brokers, wheeler-dealers and money-launderers, economists and consultants, loan-sharks and financial planners. All Satan-spawn. Yeah, exorcisms...

Or get SCOTUS to rule that money isn't speech. Might work.