Anonymous
Anonymous asked in Business & FinanceInvesting · 1 decade ago

Is the worst of the U.S. stock market crash over?

I know it is impossible to predict, but what are the economic experts saying - and do you think they are giving their honest opinion (and not just trying to get people to pump money in stocks)?

7 Answers

Relevance
  • Anonymous
    1 decade ago
    Favorite Answer

    We're not talking about a stock market crash here but something much worse. A stock market crash is like when your furnace goes out because a wind blows out the pilot light. You are in trouble, you scramble around until you figure out what the problem is, and it's relatively simple to fix. What we have here is not the pilot light going out but more like the fuel being cut off.

    In the 1970s we had a serious wave of double-digit inflation and double-digit interest rates. This happened during a time of low growth, 'stagnation', which is not the way it usually happens. The word they made up for it at the time was 'stagflation'. Republicans love to blame this on Jimmy Carter, but actually it began long before he was president. Two presidents before him, Nixon had imposed wage and price controls (that socialist! 8^) ), and after Nixon was gone, President Ford ran a program called Whip Inflation Now which consisted of people wearing buttons that said 'WIN', and not much more than that.

    But these bad times were brought on by two things. One was a huge debt from a long unproductive war. The other was a sudden doubling of the price of fuel. Sound familiar?

    I think we are going to have some serious problems in the next few years, no matter who wins this election. We will make it through okay, but we'll all be a little poorer (except, of course, the richest of us.)

  • 1 decade ago

    I would bet the Bush Fed will screw up the economy more before Bush leaves office. The chances a new Democratic Presiden can fix the ecolnomy by replacing the old regeme are about even money.

    Overall I see the Market going lower until the election and new economic policies get in place after the election. Recovery and a rising stock market about 50% after that.

  • Anonymous
    5 years ago

    It goes further back; It's been nearly a decade since Congress and President Clinton reshaped the financial landscape. That 1999 legislation removed Depression-era barriers between commercial banks and investment firms and allowed the creation of financial behemoths where years later the risks of underwriting subprime mortgages were somewhat hidden. Sweep all of them out, both parties. V

  • Anonymous
    1 decade ago

    The market hasn't crashed. It could, that's why the government wants to shove $700 billion of junk investments down taxpayers' throats. There is a good explanation here: http://www.clipsandcomment.com/2008/09/23/listen-t...

  • How do you think about the answers? You can sign in to vote the answer.
  • 1 decade ago

    The stock market has not crashed. Are you reading leftist newspapers?

  • Anonymous
    1 decade ago

    The market didn't crash.

  • Anonymous
    1 decade ago

    No, it's far from over.

Still have questions? Get your answers by asking now.