[VadeRetro]

I could start to think about buying, with this kind of article around. Only problem is, I'd have to risk a shrinking supply of money. Still, when you smell fear is the time to back the truck up to the loading dock.

[SamAdams76]

The "Day-Trader" mentality is what got us into this mess. Yuppies checking their stocks every five minutes on their Palm Pilot while sipping cappuccino at Starbucks, like they were Gordon freaking Gekko, make me ill. I'm actually glad that self-absorbed era is now over and that the nation can get back to real work.

BTW, I'm not against investing in the stock market. I've been investing monthly since 1982. But I buy my stocks for the long haul. I haven't sold a single share in 20 years and I probably won't for another 15-20. I'm in for the long haul and see the current bear market as an opportunity to obtain more shares for my modest monthly contributions. And if I lose it all, what the heck. I would have blown it all on beer and pizza anyhow (and I still get plenty of that).

[Lazamataz]

While the author is spot-on that stock prices need to come down dramatically, I think he is very wrong about thinking we will become the next Japan. Japan has very limited resources, nearly no physical room for growth, and very little immigration. (Believe it or not, immigration -- hated by Paleo-conservatives and Buchananites alike -- fuels great growth in an economy) Additionally, we do not have nearly the level of socialistic interference in our corporations as Japan does, although in this regard we seem to be striving for parity.

The best things we can do to reinvigorate the economy are to A) Lower taxes where possible, B) Shrink government ruthlessly, C) Sell or give federal land to private citizens.

[PJ-Comix]

The problem with the Japanese economy is that stuff isn't made there anymore. Right after the war, the Japanese made tons of cheap little products that were exported to the USA. "Made In Japan" back then meant "Cheap Product." Then the Japanese upgraded and exported high quality electronic products and cars---TVs, VCRs, radios, Toyota's, etc.. Meanwhile the Koreans and the Taiwanese sold up the cheap products that the Japanese used to. Then the Koreans and the Tawainese started selling us all those electronic products and the Japanese had no where else to go. Oh, and the mainland Chinese are selling us the cheap little products that the Japanese used to. However, I expect the mainland Chinese to eventually upgrade to fancier electronic products and computers. Maybe the Japanese will have to go back to producing those cheap little products again.

All I know is that I rarely see products anymore that say "Made In Japan."

[Vince Ferrer]

All of which explains why policymakers are a lot more concerned about the recent downward spasm in share prices than they are letting on.

[...]

...the Fed would then come under strong pressure to cut interest rates at its August meeting, and would almost certainly bow to it. There is, however, no guarantee that it would be effective in restoring confidence. Why? Firstly, it would be a small cut of only 0.25 percentage points from the already low level of 1.75%. Secondly, it might be counter-productive, seen as a sign that the Fed was panicking (which it would be).

These policy types want us to believe the only influence they have over the economy is setting interest rates, and we're almost at zero now. In fact, they have plenty of things they can do, like cut out government regulations that hurt business. There's plenty of junk in the Federal Register that needs to be cut out. But since that would require giving up some power, its obviously going to be the last thing they'll try.

[2sheep]

>On the edge of a precipice

Or deck, balcony, cliff.  There have been lots of warnings.

[Sally II]

policy makers, dazzled by Cramer, Glassman and their friends in the financial markets, deliberately removed the brake pedal from global capitalism. And, as any engineer knows, the brake pedal is what allows the machine to travel safely at speed.

That sounds pretty ludicrous to blame everything on the over-optomistic advice of Crameer, Glassman and "their friends in the financial markets". Sounds to me like Larry Elliot, the writer of this article, took their advice and lost his retirement fund. And now he's sore and bitter. Most people who have experience trading will take their cues from the market first and will consider the opinions of others second.

I also take offense to Larry's reference to stock traders and analysts as worshippers of Mammon. I'll bet anything Larry was singing a different tune 5 years ago. Some of us still do make a living off day trading. Just because he probably lost his savings in the market doesn't mean he has the right to go slinging insults at people. It looks bad when a person doesn't take responsibility for their own bad choices.