Plan B won’t work either, but it does have the advantage of the bumping up the stock market directly. Unfortunately it also creates a fatal connection between the govt-created credit bubble and the beneficiaries of the credit bubble (and it’s not us). Another reason that plan B is stupid is that China would invest directly in our banks if they thought it was a good idea. Instead our govt is borrowing the money from China to invest in our banks with the collateral being the sweat of future American taxpayers (if there are any left in the future).
There is a reason I post these articles here for discussion. I want them deconstructed. If they stand scrutiny, I learn from that. If they don’t, I learn from that too.
And I am in deep debt to all of you, my teachers.
I hate the process of investing and stayed ignorant intentionally. I want the outcome of having much more money and of investing shrewdly, but I am disinterested and even repulsed by the process of it. I hate money and what people are willing to do for it and what it can turn otherwise good people into.
As a result, I never was into wealth creation. I only wanted just enough to pay my bills and maintain a small premium of both fun and security. Nothing more.
The housing bubble collapse and subsequent liquidity crisis has caused me to want to study as much as I can about economics, but my foundation I had was very weak. Everything I am learning about economics has come in just the last 2 years. I appreciate the contributions from people here, even while it is maddening learning who is reliable through all the noise. And the noise here is deafening.
Thanks to all of you my teachers. The lessons are timely and not only helping me to protect my savings during this crisis, but I can help others as I pass the information along.
Before the internet, before FreeRepublic, I would have just remained ignorant.
Thank you all.
If stocks are undervalued, how about making clear that companies that buy up their own stocks in reasonable circumstances won't be subjected to harassment? A company that buys its own stock at a price below its net per-share worth will often improve the worth of shares still on the market, in addition to raising the price.
If stocks are overvalued, how about letting the market correct?
Why is it necessary for the government to try to prop up stock prices? What's the point of that except to reward those who know the details of the propping-up plans?