Market Dive - Perspective

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Jimbeaux

Original Poster:

33,791 posts

232 months

Thursday 4th August 2011
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In the light of the massive ,arket dives of recent days (today being the worse in a while), I want to remind people that money matters is an emotional thing as much as it is a science. Therefore, we have to give equal credence to the human emotional factor as much as the hard numbers IMO. The recent hard talk by both spectrums of politicians has finally managed to "scare" even those that usually exhibit calm. As a result, those who would invest in a business expansion, move on an aquisition, launch a new product, etc has decided to sit tight to see how the climate looks. Those who made recent money on commodities are cashing out their profits and staying pat to see if this administration has any great ideas or wait until the next one. Note that in this mass selloff, Bonds have remained still, no big sell off; those are remaining a safe haven.
Emotion, whether we like it or not, gets as many seats at the financial table as financial science.
A move or action that raises spirits or is perceived to create a new and better business climate will raise consumer confidence, consumer confidence is the positive emotion that convinces people to turn loose of their money. That in turn can turn the economy around; money is out there, it just needs to circulate.
Ironically, it is a positive emotion that will be needed to spark a positive move in the science of money. All IMHO.

Toyowner

23,630 posts

222 months

Thursday 4th August 2011
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We're screwed, right ?

Ozzie Osmond

21,189 posts

247 months

Thursday 4th August 2011
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Jimbeaux said:
I want to remind people that money matters is an emotional thing as much as it is a science.
Valid point. IMO the change from "cash money" to "electronic money" has interfered with that link in a bad way. I'd even go so far as to say both USA and UK have lowered perception of their coinage on the street by getting rid of "traditional" images on the coins and covering them with a random assortment of pretty pictures. All of this makes it look and feel more and more like monopoly money. I'm also uncomfortable about derivative trading when it gets to the point where "investment" is forgotten and "speculation" takes over.

Together these things devalue money to the point where it's just numbers in a computer and doesn't represent anything tangible to its users. Bad thing.

Drclarke

1,185 posts

174 months

Thursday 4th August 2011
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Look on the bright side, there will be PLENTY of money to be made when the markets recover.

Jimbeaux

Original Poster:

33,791 posts

232 months

Thursday 4th August 2011
quotequote all
Ozzie Osmond said:
"investment" is forgotten and "speculation" takes over.

Together these things devalue money to the point where it's just numbers in a computer and doesn't represent anything tangible to its users. Bad thing.
I agree with your take, especially the points above. yes

Jimbeaux

Original Poster:

33,791 posts

232 months

Thursday 4th August 2011
quotequote all
Drclarke said:
Look on the bright side, there will be PLENTY of money to be made when the markets recover.
True; there is no shortage of wealth, it is just hiding in the foxhole at the moment.

WhoseGeneration

4,090 posts

208 months

Friday 5th August 2011
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Jimbeaux, where's the PPT these days?

Jimbeaux

Original Poster:

33,791 posts

232 months

Friday 5th August 2011
quotequote all
WhoseGeneration said:
Jimbeaux, where's the PPT these days?
What? The Plunge Protection Team?

Bing o

15,184 posts

220 months

Friday 5th August 2011
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cheddar

4,637 posts

175 months

Friday 5th August 2011
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Lot of funny posts on here, worth the read just for the laugh. well done.

I thought bonds were being sold, hence the huge currency swings.

Yes? No?


Bing o

15,184 posts

220 months

Friday 5th August 2011
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cheddar said:
Lot of funny posts on here, worth the read just for the laugh. well done.

I thought bonds were being sold, hence the huge currency swings.

Yes? No?
There's certainly an Indian bond auction today.

Mst007

472 posts

223 months

Friday 5th August 2011
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Cameron: "Due to unforeseen circumstances, the light at the end of the tunnel has been switched off"