A Little Human Action

[4est_4est_Gump]

...

There is a social phenomenon loosely called a speculative bubble that can drive prices, even occasionally for the world’s stock markets, to high levels.

The notion of a speculative bubble was seen for a long time as disreputable in finance circles, but it is gradually gaining acceptance. It takes a different view of the world, more akin to that of psychologists or sociologists.

In general, bubbles appear to be associated with half-baked popular stories that inspire investor optimism, stories that can neither be proved nor disproved. In recent days, those stories have been about peppy earnings growth or perpetual low interest rates or about the inevitable high long-run performance of the stock market. During the upswing of the bubble, many people find it useful to latch on to these stories, to profit from the illusions they create. Some of these people are in the investment field, others in politics or the news media. In the words of John Kenneth Galbraith in 1958, they create with constant repetition, because it profits them, a sense of “conventional wisdom” about some inspiring investor story.

In a soon-to-appear book, “Phishing for Phools: The Economics of Manipulation and Deception” (Princeton University Press), that I wrote with George Akerlof of Georgetown University, we argue that the proliferation of such stories is a natural part of economic equilibrium. Successful people who value their careers rely on an instinctive sense for what pitch will sell. Who knows what the truth is, anyway?

As time goes on, the stories justifying investor optimism become increasingly shopworn and criticized, and people find themselves doubting them more and more. Even though people are asking themselves if prices are too high, they are slow to take action to sell. When prices make a sudden drop, as they did in recent days, people tend to become fearful, even if there is a subsequent rebound. With the drop they suddenly realize that their views might be shared by other people, and start looking for information that might confirm their belief. Some are driven to sell immediately. Others are slower, but they are all similarly motivated. The result is an irregular but large stock market decline over a year or more....

Robert J. Shiller

Do you know what CAPE is?



http://www.nytimes.com/2015/08/30/u...-stocks-are-overpriced.html?ref=business&_r=0

 

[JAMESBJOHNSON]

I usta buy trainloads of plywood, sheetrock, lumber, and other construction commodities when prices collapsed.

 

[4est_4est_Gump]

Trainloads?



Embellish much?

 

[4est_4est_Gump]

 

[4est_4est_Gump]

Canada in recession???

http://news.yahoo.com/canada-officially-recession-first-half-2015-131114485.html

Lance?

How quickly can you blame Bush?

 

[badbabysitter]

We can blame the Conservative party which has driven the economy into the toilet though

 

[4est_4est_Gump]

Who is we?



Does the US oil boom have anything to do with it?

 

[Everyday_Man]

I usta buy trainloads of plywood, sheetrock, lumber, and other construction commodities when prices collapsed.

I do the same thing with pussy. I invest when it reaches adulthood and sell when they mature to milf hood, long before gilf status..

 

[4est_4est_Gump]

Well, that is a form of Human Action.

 

[badbabysitter]

Who is we?



Does the US oil boom have anything to do with it?

" We" constitutes Canadians...which I am and you are not.. who know our politics.. which i do, and you do not

the oil boom has had an effect...mainly because the Harper government decided to put all it's effort into promoting Canadian oil... and since you have Obama to thank for the US oil boom.. this is essentially a lesson to be learned for Conservatives

don't put all your eggs in one basket.. and thank Obama

 

[4est_4est_Gump]

Obama is adamant on discontinuing the use of carbon-based energy.

He will not allow exploration on government land is against the Keystone Pipeline and he and his party are at war with the energy industry:

“And guess what this liberal will be all about? This liberal will be all about socializing, uh, uh… would be about basically about taking over the government running all of your companies.”
Maxine Waters

Our oil boom is the direct result of entrepreneurs, investors, and engineers who debunked the Liberal myth of Peak Oil. Perhaps you should stick to subjects that you actually understand like where are the best places to hide the Canadian Bacon...