teh_pwn said:
^DJI down 293 today. So much for this week's edition of the Fed cut and stock market "rally." :lol :lol :lol
Fucking loony Corporate Socialists.
Everytime they cut rates things will get worst. They have to stop intervening, and in fact they should have done nothing at all for the past few months.
If people are so worried about their 401K or whatever, they can just fucking place it in another account or stop contributing until things get better. The feds should only proceed to eliminate corporate corruption and the likes.
People don't seem to accept the following fact:
Imagine if the only people who invested in the markets were perfect investors that invest based on value. The value of the companies would always be perfectly accurate. Of course, no one can be a perfect investor, but still, good investors that invest on value could manage to keep share prices in line with true valuation. Now add more investors, investors who don't only invest on value but on trend, emotions, and advices from psychics or who knows what else. The accurate valuation of the market starts to dissipate as trades are less and less based on perceive value. After some time, value becomes irrelevant; the value-driven investors can no longer invest based on perceived value, they are forced to play the wrong game by having to guess how the markets made up of terrible emotion-driven investors will react. Now you're left with a facade, an illusion, something that becomes completely undecipherable, a market on which you can't put an actual value.
It's no different than if you could keep adding dozens and dozens of players every year to your baseball team to have a bigger talent pool to chose from; at some point you will lose track of who is skilled and who isn't, and if you can't get rid of the bad players after a strong careful review you're going to do what any human would do and instead rely on superstition or emotions. You'll see trends were there are none, because anything random will have discernable patterns emerge out of them (see; the whole fucking universe).
This is the kind of markets we now have, and it is why no action can be taken by the feds to correct anything. The only thing you can do is let investors leave the damn markets. The ones that corrupted the markets will have no choice but to leave eventually, while the real good investors will be safe and will return to play when the place has cleaned up.