Thread: How can the stock market ever be trusted again?

With people losing over a third or more of their money in such a short time.
Why would they want to put their retirement money into the stock market ever again?...There is no confidence in the government or the stock market...It's going to take years or maybe never to gain back the trust again.

I had a small amount in a mutual fund and two weeks ago I sold it because of all the bailout talk. Also because of the bailout talk, my son cashed in his Roth Ira two weeks ago, he figured it was worth it to pay the taxes and the penalties now.

The people close to retirement have been destroyed. It's sad because no one knows where this is going to end.

Now I'm beginning to see and feel how the people ( my parents generation) went through the Great Depression and why they were so thrifty their whole lives...Most of that generation saved and they only bought what they could afford...Unfortunately, what's happening now is going to stay with us for the rest of our lives.

The home I live in I inherited from an Aunt & Uncle who lived during the great depression. They told a story of how my Uncle, who worked for newspaper at the time, saw a news flash come over the tele-a-type. It said the banks were going to crash. He alerted my Aunt, who ran to the bank to withdraw the little money they had. As the teller was giving her her money, the President of the bank yelled to stop all transactions.
Luckly for my Aunt she ripped the money from the tellers hand. It was $500.00 all they had to their name.
From then on they always said to keep extra cash on hand. I used to laugh at them, saying banks are insured, and we'll never have another depression......... Somewhere I know their shaking their heads at me now.

Originally Posted by Molly

Now I'm beginning to see and feel how the people ( my parents generation) went through the Great Depression and why they were so thrifty their whole lives...Most of that generation saved and they only bought what they could afford...Unfortunately, what's happening now is going to stay with us for the rest of our lives.

THEY SAVED BECAUSE THEY HAD SOMETHING LEFT OVER TO SAVE. NOT TRUE WITH THE FOLLOWING GENERATION.

THEY HAD SECURE JOBS THAT PAID A DECENT WAGE. MANY WOULD WORK FOR THE SAME COMPANY ALL THEIR LIVES. THEY COULD BUILD SOMETHING DURING THEIR LIVES.

THE SECURITY THEY HAD WAS PROTECTED BY LAWS THAT HAVE BEEN ERODED OVER THE YEARS.

THEY COULD SEND THEIR KIDS TO SAFE SCHOOLS. NEARLY EVERYONE COULD AFFORD SOME KIND OF HOUSE. THEY COULD BUILD SOME WEALTH OVER THE YEARS.

THEY COULD AFFORD THE BASICS. ITS EASY TO SAY PEOPLE DONT LIVE WITHIN THEIR MEANS....BUT DEFINE THAT.

IF WAGES ARE SO LOW THAT YOU CANT AFFORD A CAR....SHOULD YOU GO WITHOUT A CAR? IF WAGES ARE SO LOW THAT YOU HAVE TO SPEND 60 OR 70% OF YOUR CHECK FOR HOUSING....SHOULD YOU JUST LIVE IN THE STREET? BECAUSE THIS IS WHAT YOU ARE SUGGESTING BY SAYING PEOPLE SHOULD LIVE WITHING THEIR MEANS.

SHOULD YOU LET YOUR KIDS GO TO SCHOOL BAREFOOT AND WITH NO LUNCH? THIS IS WHAT YOU ARE SUGGESTING. BECAUSE MANY MANY AMERICANS NO LONGER MAKE ENOUGH TO BUY THE BASICS. THEY DONT MAKE ENOUGH TO HAVE HOUSING AND FOOD AND MEDICAL AND ELECTRICITY AND TRANSPORTATION. LIVING WITHIN THEIR MEANS WOULD MEAN GIVING UP SOME OF THE BASICS. WHAT SHOULD THEY GIVE UP?

I DONT THINK ITS TRUE THAT AMERICANS ARE OUT WILDLY SHOPPING AND BUYING EVERYTHING THEY DONT NEED. I THINK ALMOST EVERYTHING IS FROM CHINA AND DOES NOT LAST LONG AND THEY HAVE TO KEEP BUYING THE SAME THING OVER AND OVER. THEY SLOWLY GO INTO DEBT TRYING TO KEEP UP WITH THE BASICS.

OUR PARENTS WERE NOT LIVING ON THIRD WORLD WAGES OR REGULARLY BEING LAID OFF. OUR PARENTS HAD ACCESS TO AMERICAN MADE GOODS THAT LASTED. THEY COULD BUY IT ONCE IN AWHILE.

SOMETIMES I HEAR PEOPLE CRITICIZE AMERICANS FOR BUYING SUV'S. BUT OUR PARENTS ALL HAD STATION WAGONS. THEY NEEDED STATION WAGONS BECAUSE THEY HAD KIDS. AN SUV IS JUST A REMAKE OF THE STATION WAGON. IT IS A BASIC NEED IF YOU HAVE KIDS. IT IS NOT A LUXURY.

I HAVE HEARD AMERICANS BEING CRITICIZED FOR BUYING CLOTHES FOR THEIR KIDS, FOR BUYING FURNITURE, FOR GOING OUT TO EAT. OUR PARENTS WENT OUT TO EAT, WHAT IS THE BIG DEAL?

THE FACT IS THAT OUR PARENTS HAD MORE RESOURCES AND STABILITY. IT WAS NOT BECAUSE OF ANYTHING THEY DID, BUT BECAUSE THE COUNTRY WAS RUN DIFFERENTLY.

THEY HAD PENSIONS AND SOCIAL SECURITY BECAUSE IT WAS NOT ROBBED BY THEIVES. THEY HAD SECURE JOBS BECAUSE PROTECTIONS WERE NOT ERODED. THEY HAD AFFORDABLE HOUSES AND MORTGAGES BECAUSE THERE WERE LAWS IN PLACE TO PROTECT AMERICANS. THE COUNTRY WAS NOT FULL OF WORKERS FROM OTHER COUNTRIES.

THOSE LAWS HAVE SINCE BEEN ERODED OR IGNORED. AND MASS IMMIGRATION ...LEGAL AND ILLEGAL....HAS BEEN ALLOWED TO ERODE THE MIDDLE CLASS.

SO WHEN YOU SAY AMERICANS SHOULD LIVE WITHIN THEIR MEANS....GIVEN THE CURRENT CIRCUMSTANCES....WHICH OF THE BASICS OF LIFE WOULD YOU HAVE THEM GIVE UP?

THIS "LIVE WITHIN YOUR MEANS" MYTH IS PROPOGANDA FROM THE CORRUPT BANKSTERS AND OTHER CORRUPT CORPORATIONS WHO WANT TO SHIFT THE BLAME TO THE VICTIM.

ITS ALL OUR FAULT. NEVER MIND THAT THE WHOLE CREDIT SYSTEM IS CORRUPT AND OUR WAGES CANT BUY THE BASICS...ITS OUR FAULT FOR LIVING BEYOND OUR MEANS.

ITS ALL OUR FAULT. NEVER MIND THAT REAL ESTATE WAS ARTIFICIALLY INFLATED SO NO ONE CAN AFFORD IT ANYMORE.

ITS ALL OUR FAULT. NEVER MIND THAT HOARDS OF ILLEGAL AND LEGAL WORKERS ARE BEING SHIPPED FROM ALL OVER THE GLOBE BY GREEDY CORPORATIONS SO THAT NO ONE CAN GET A DECENT OR RELIABLE PAY CHECK.

ITS ALL OUR FAULT. I AM TIRED OF HEARING THIS BS.

I haven't lost trust in the stock market, I have lost trust in our politicians who have worked together with greedy bankers and real estate agents to make us pay for houses illegal aliens and others could not afford!

Originally Posted by Bowman

I haven't lost trust in the stock market, I have lost trust in our politicians who have worked together with greedy bankers and real estate agents to make us pay for houses illegal aliens and others could not afford!

IF THERE WERE LAWS TO PROTECT THE STOCK MARKET FROM INTENTIONAL MANIPULATION, IT WOULD DO JUST FINE. THERE WOULD BE NO BUBBLE...AND THEREFORE NO CRASH.

THE SAME IS TRUE WITH THE HOUSING MARKET AND MORTGAGES. IF IT WERE NOT BEING MANIPULATED, IT WOULD BE DOING JUST FINE....LIKE IT DID IN THE PAST.

Originally Posted by Bowman

I haven't lost trust in the stock market, I have lost trust in our politicians who have worked together with greedy bankers and real estate agents to make us pay for houses illegal aliens and others could not afford!

Bingo. They filled the jobs with illegals to keep our wages down.

Despite all of the Wall Street crooks & thievery, I haven't fully lost faith in the stock market. And I'm not going to panic, sell and lock in my losses now, as I have a long time horizon. Remember, when the market recuperates most gains will likely be made in a short period of time. And I'm worried about high inflation in the coming years.

Originally Posted by redpony353

IF THERE WERE LAWS TO PROTECT THE STOCK MARKET FROM INTENTIONAL MANIPULATION, IT WOULD DO JUST FINE. THERE WOULD BE NO BUBBLE...AND THEREFORE NO CRASH. THE SAME IS TRUE WITH THE HOUSING MARKET AND MORTGAGES. IF IT WERE NOT BEING MANIPULATED, IT WOULD BE DOING JUST FINE....LIKE IT DID IN THE PAST.

I agree with the second part, any regulation/requirements for mortgages and mortgage backed securities went out the window, the bubble and subsequent losses this created has brought down the stock market. Actually I think the stock market is overreacting, there is no basis for this much of a drop, I think people are just afraid and taking their money out at this point.

Originally Posted by Bowman

Originally Posted by redpony353

IF THERE WERE LAWS TO PROTECT THE STOCK MARKET FROM INTENTIONAL MANIPULATION, IT WOULD DO JUST FINE. THERE WOULD BE NO BUBBLE...AND THEREFORE NO CRASH. THE SAME IS TRUE WITH THE HOUSING MARKET AND MORTGAGES. IF IT WERE NOT BEING MANIPULATED, IT WOULD BE DOING JUST FINE....LIKE IT DID IN THE PAST.

I agree with the second part, any regulation/requirements for mortgages and mortgage backed securities went out the window, the bubble and subsequent losses this created has brought down the stock market. Actually I think the stock market is overreacting, there is no basis for this much of a drop, I think people are just afraid and taking their money out at this point.

YES THEY ARE AFRAID. I DONT BLAME THEM...I AM LOOSING MY SOCKS IN THERE. BUT I AM STAYING IN TILL IT GOES BACK UP. THERE IS NO REASON TO GET OUT OF ANY STOCK THAT IS HEALTHY. UNLESS THE COMPANY IS GOING UNDER OR SOMETHING.

I FEEL SORRY FOR PEOPLE. THEY DONT KNOW WHAT TO DO. THEY DONT WANT TO TAKE OUT THEIR MONEY AT A LOSS, BUT THEY ARE SO AFRAID TO LEAVE IT IN. I HOPE I AM DOING THE RIGHT THING BY STAYING IN.

BUT I THINK IF EVERYONE SELLS HEALTHY STOCK, THAT IT WILL JUST BE BOUGHT UP BY THOSE LOOKING FOR A GOOD DEAL. THE WEALTH WILL BE TRANSFERRED. AS THE STOCK IS SOLD, THE MONEY IS LOST BY THE PERSON WHO SOLD IT AND GAINED BY THE PERSON WHO BUYS IT AND HOLDS IT TILL IT GOES UP.