People invariably do the opposite of what they should do. The Stock Market is doing
exactly what it's supposed to do as even Warren Buffet keeps saying.
People buy low which increases the share prices, then take their profits when the Market is high then it goes back down again so people can buy more stocks at cheaper prices. Then the market caps of businesses increase once again which reduces lay-offs and unemployment and the businesses along with the shareholders will being to flourish again. That's Economics 101.
But instead, people see a low market as a
disaster instead of the
perfect opportunity to buy again! As FDR once said, "The only thing to fear is fear itself." People fear the stock market when it's low because they think that businesses are going to collapse instead of buying stocks again so they
won't collapse! If Walmart were having a sale, there would be cops directing traffic! But when there's a sale on wall Street, people run away from it! :eek:
So because of irrational fear, people
abandon their common sense and adopt common nonsense which the Obama Administration is actually
encouraging because his agenda is to be savior of the world. Instead of getting people back on their feet again by
encouraging them to invest in businesses, he says'
"I'll rescue the businesses by giving them the money." So he gives businesses money that the government doesn't have, just so they can spend it just so they can come back to the government for more money! :eek:
Needless to say, his approach will cause less confidence in businesses, which will result in many of them collapsing and break the government in the process. So what needs to happen is for the word to be gotten out;
"THERE'S A SALE ON WALL STREET. PRICES ARE DIRT CHEAP. COME ON IN!" And I
guarantee, the economy will start flourishing again.