Black humor

As dark as the irony is, I still have to point this out:

The Dow Jones, arguably the cornerstone representation of a free market system, tanked today when the government announced it wouldn’t intervene.

I don’t know enough about economics to have a solid opinion or even an instinctual inclination, but judging from the deep divide in Washington, I suspect our best economists don’t have a definitive answer, either.

The next few weeks are going to be interesting.


About Shannon Quinn

Oh hai!
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8 Responses to Black humor

  1. spiritualway says:

    I’d say your intuition is working very well! I have been in the equity markets for over forty years and if I based my investment decisions on economists I would have been broke long ago!

    Just plain reasoning and a little common sense will go a long, long way!

  2. magsol says:

    Considering the economic situation this nation finds itself in, I’d have to say common sense isn’t so common. =/ But I will be the first to admit that I have no idea how to solve the problem. I just hope someone in Washington does, and soon.

  3. spiritualway says:

    With all due respect, you are looking to the wrong place for solutions! You and all of us “Main Street” people have the ability to work through this current “crisis”; the question is do we have the will! Wall Street and Washington are not the answer to how we choose to live our lives economically or otherwise!

  4. magsol says:

    I’m reminded of the nugget of wisdom from Men in Black: “The person is smart. People are dumb, panicky, dangerous animals.” When the chips are down, people panic because they know everyone else is panicking, so they make dumb decisions, like selling their portfolios when the government announces it won’t absorb the bad mortgages.

    I fully agree we all have the ability to work through this crisis. But setting aside the fact that I doubt we could all come to a consensus anyway, I don’t believe enough people will not panic to make a difference. Call me cynical, but I see this crisis as a direct result of terrible business decisions and a panicking American citizenry. Americans won’t restore their own confidence and start investing again until they see a sign from somewhere else. It’s dumb as hell, but it’s the reality.

  5. Richard says:

    Honestly, I’m viewing this as a time that I should be making some massive investments — maybe not today, or tomorrow, but soon. I have years to recoup any losses and I’m not worried about being unable to get a job so long as somewhere in the world someone needs software.

  6. eksith says:

    Imagine owning a house worth 400K that suddenly is worth 200K. But guess what… You’re still paying the mortgage for the original 400K price.

    And that’s got everything to do with the value of the bank and how and where they invested. This “crisis” was created with a chain reaction which you have no control over.

    It’s easy to point the finger at “bad lending practices” and “poor investment choices”. But honestly how many people are affected that had nothing to do with either.

  7. magsol says:

    I guess my problem is that Wall Street (at least lately) seems to live entirely off of credit and short-term investment, which is precisely why we’re seeing triple-digit changes in the market every single day. Everyone is panicking and going into a crazed sell-off, when that only exacerbates the situation. It’s certainly understandable, but utterly unhelpful.

    I agree totally that the crisis is here; there’s certainly nothing we can do about that now. But to lift ourselves out of this mess, people need to have confidence in that which they’re investing, and against all logic (but in line with instinct) we’re expecting some sort of instant fix. By the very nature of economics, there is no such thing.

    My bottom line here is that I see the whole situation – laws of economics with mass human tendencies – as a Catch-22.

  8. eksith says:

    “Credit” is a fancy term for “debt” 😛
    There is a lot of psychology going on in economics and name tweeking (otherwise known as reverse psychology) plays a large part. So economics is not only affected by human nature, but engineered behavior as well.

    Like you said, there is no usch thing as a quick fix.

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