tag:blogger.com,1999:blog-1207581886255094115.post8451184249702158883..comments2024-02-26T05:51:17.859-05:00Comments on Economic Disconnect: The Cloak of Deception that was the Credit BoomEconomicDisconnecthttp://www.blogger.com/profile/02802078645713106743noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-1207581886255094115.post-36619907300701870712008-03-10T06:27:00.000-04:002008-03-10T06:27:00.000-04:00Another great post again!!Keep up the good work......Another great post again!!<BR/><BR/>Keep up the good work...<BR/><BR/>MentalicMentalichttps://www.blogger.com/profile/16289718885391643440noreply@blogger.comtag:blogger.com,1999:blog-1207581886255094115.post-17606580656072129292008-03-10T05:06:00.000-04:002008-03-10T05:06:00.000-04:00Great post. I also had some experiences with spend...Great post. I also had some experiences with spending beyond my comprehension. Back in 2005, I watched neighbor after neighbor purchase new cars, install fine pools, construct massive add-ons, and buy "investment" houses. I'm youngish, but am old school with my money. Buying a house? Gotta have 20% down and spend no more than half your take home, tops. Want a nicer tv? Gotta wait till the old one breaks down. Want a new car? Save up and buy it with one check while you use your old one for another 100,000 miles. So here I was watching my neighbors, wondering how in the heck thay can afford all this stuff, thinking that maybe they had some hidden trust fund. Silly me. I had no clue about the state of high finance and personal leveraging. In fact, just want to say that out of all of this mess, my favorite take away is that word itself: "Leveraging". What a fantastic way to market debt as wealth, huh? Dude, we are all Trumps, now, aren't we.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1207581886255094115.post-48622440316980408442008-03-09T23:02:00.000-04:002008-03-09T23:02:00.000-04:00Wow, this is like a double bonus day, good post Ge...Wow, this is like a double bonus day, good post Getyourselfconnected and Kevin.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1207581886255094115.post-47453912081382509962008-03-09T21:42:00.000-04:002008-03-09T21:42:00.000-04:00Solen shamlessly for someone but so true:Bear mark...Solen shamlessly for someone but so true:<BR/><BR/>Bear markets are usually comprised of three stages—Denial, Fear and Capitulation.<BR/><BR/>History is replete with examples of massive herd-like public purchases at the peak of financial asset prices and emotional liquidations at the troughs. A number of financial and economic studies have covered this topic from the tulip bulb craze in the 1600s to the crash of 1929. Although culture, technology and financial instruments undergo great change over time, human nature remains the same and emotional highs and lows in financial markets are a fact of life that never changes. A modern example is the early 1980s financing and marketing of oil and gas shelters from the drilling areas of Texas and the Gulf of Mexico to Wall Street where there seemed to be unlimited demand for anything to do with oil and gas. This demand coincided with the peak in oil and gas prices in the early 1980s leading to heavy losses, bankruptcies, a crash in Texas home prices, and the necessity to bail out every sizeable independent bank in the state. Another quick example of public “irrational exuberance” was the lines of people around the blocks of downtown Manhattan seeking to buy gold and gold coins just as the price of gold was peaking in 1980 at over $850 an ounce. Time after time, it's apparent that the public always buys heavily what it most recently missed, and subsequently liquidates with major losses.<BR/><BR/>KevinAnonymousnoreply@blogger.com