I just cannot stay away tonight!
Nasdaq Crash vs. Mortgage Crash - Who Holds Equals Who Gets Bailed Out
The technology stock boom was massive. Known also as the Dot Com Bust, this little tidbit of history yields a lesson.
The Nasdaq crashed from 5048 to a low of about 1200 in the time span of February 2000 to September 2002. Around 5 TRILLION dollars (the dollar was strong then!) was wiped out.
Now ask yourself: Any bailouts? Any emergency government meetings? Any "relief" for the losers? I thought not.
See, the difference here is that individual private investors held the majority of the toxic tech garbage. The taxpayer was already on the hook as they bought into the mania. The banks and brokerages had already pocketed their commission profits, and made out like devils. the Nasdaq today stands at around 2100, still only half the high and no "relief" for the small guy?
Now the banks themselves hold all the crap paper, and now the government would like to stick it to us again? I mean you get hit no matter what!
Wake up folks. Oppose this bailout!