Post-Recession Investing: Have The Market's Glory Days Disapeared Forever?

U.S. News & World Report:

With a little luck, the economy and the stock market should hit bottom sometime this year. In fact, there's a chance that both already have, although it certainly doesn't feel like it. It will be a pleasant moment when we begin to bid farewell to the housing and credit busts, the banking meltdown, and frightened consumers all sources of fear that kept Wall Street stomping on the "sell" button. What emerges next, however, is anything but certain.

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Read the whole story: U.S. News & World Report

Comments

[pastpartisan]

We are borrowing the stimulus money. More stimulus is equivlent to throwing gasoline on the fire. We can't possible pay the debt back... legitemately. The government will use inflation to cheapen the debt. Unfortuneatly, this will hurt the poor, the working class, and the elderly on fixed income. Reckless government spending is not a Liberal value. http://www.alexandria.lib.va.us/link/redir.pxe?www.iamned.com

Stimulus is a joke of a concept; it doesn't end up with real economic growth in the long term. Even the New Deal failed to increase private investment. It wasn't until 1941 that domestic private investment reached 1929 levels. The fact that the first stimulus has failed to stop the bleeding yet isn't surprising. Our government deficit for the year which is over 20% of GDP (when the omnibus bill, first stimulus, bailouts, and on-budget deficit are summed) is unsustainable and something's gotta give, whether it be the lenders or the interest rates.

hat tip to http://www.alexandria.lib.va.us/link/redir.pxe?www.iamned.com

[gemzenith]

We are warned about high risk behavior with drugs,alcohol cars guns whatever,but when its comes to $ well its so on baby!WTF!

[BabblingBrooks]

Market's glory days over? You bet, if Obama gets his way! He's doing everything purposefully to spoil the economy, the stock market, to hinder corporations, to take over corporations, to make more people impoverished and dependent upon government. Problem is, where's the government going to get the money?

Obama says "We're out of money. Let's go shopping!" Obama is a political shopaholic on a monumental scale.

[marijam]

So. They are FINALLY starting to see the writing on the wall. With stock returns expected to go as low as 50% of what they had been, maybe shareholders will force boards to stop giving upper management those huge bonuses.

Like I've been saying for some time now, pay off your mortgage and take whatever money you would have put into stocks and bonds and, instead purchase certificates of deposit. If the "gurus" are right, and retirement funds, pension funds, et al, go chasing riskier investments that makes the likelihood of, AGAIN, losing your nest egg. I don't know about you, but three times was enough for me.

[PhilipTaylor]

The $30 to $100 Million Bonuses+ Mammoth Salaries were used to skim profits into employee pockets leaving the Banks weak!

That resulted in Main Street Americans filling the voids they left with their OUTRAGEOUS INCOMES!

[marijam]

I'm almost ready to vote for Ron Paul. Wipe it all out and start over. Perhaps we should have let it all come crashing down, and then rebuilt from the bottom up. I'm thoroughly disgusted at this top down stuff. You're correct. It's been nothing but a giant funnel, with the liquid going up, instead of down the funnel.

[flossophy]

Outrageous incomes only account for a small fraction of the losses... compared to government misconduct in distorting the mortgage market. Not to mention the outrageous campaign donations from WS to the Democrats.

But I schooled you on this yesterday... but you keep on posting the same thing.

Strange, huh.

[noesis]

Artificial prop up of a fundamentally depressed economy. Nuff said.

[PhilipTaylor]

Exactly!

Worst cover-up in History!

[blueken]

This is not the first time. Great Depression caused by margin buying (borrowing money to buy stock you can't afford to buy) Hedge Fund collapse (investing using investments as security). Savings and Loan collapse (lending money to developers that you don't have). Every single time bailouts. Taxpayers pay the price. Some new regulations pop up. After a time the shysters lobby Washington. Ohhhh, we can't make any money, our hands are tied by regulations. De-regulation follows, the gambling is resumed, when they come up craps, we pay. Repeat. Nothing changes. Go to work, shut up and put up. They are smarter than us and will end up with the fruits of our labor no matter what we do. End of story.

[PhilipTaylor]

Obama and Holder could simply arrest them for "Manufactured Insider Trading!"

Others for Misrepresenting products as LOW RISK "AAA" when they were HIGH RISK!

These are both Fraud Charges that are on the Books and many will qualify as Felony Charges.

These LAWS could be enforced Today or Tomorrow!

Chef Martha paid for something far less Catastrophic and Calculated!

[flossophy]

I wonder if H0lder will investigate Obama's activities while acting as a lawyer for Ac0rn... when Ac0rn was suing banks for not lending to their 0ppressed constituencies?

Ac0rn, of course, is a "n0n-partisan" get out the vote group.

H0lder, get on it.

[NOMORECROOKS]

Money doesn"t grow on trees for most of America. We sit down at our kitchen tables and write
out checks to the phone-company, electric company, credit card-company, mortgage-company,
and auto finance company every month. We clip coupons and go to the grocery store every
week to put food in the mouths of our children. This is what our parents did before us.

Money doesn"t grow on trees for most of America. We sit down at our kitchen tables and write
out checks to the phone-company, electric company, credit card-company, mortgage-company,
and auto finance company every month. We clip coupons and go to the grocery store every
week to put food in the mouths of our children. This is what our parents did before us.

good articles: http://investmintideas.blogspot.com/ recommended

Goldman and Bank of America run the markets along with Geithner, and beagle boy Ben. There
is no free markets, only welfare capitalism and socialism for capitalism.

Goldman and Bank of America run the markets along with Geithner, and beagle boy Ben. There
is no free markets, only welfare capitalism and socialism for capitalism.

[4TJefferson]

The only thing we need to know is where these CEO WALL STREET CROOKS live! Then we can find them, tar and feather them, then run them out of town on a rail.

[PhilipTaylor]

That is one approach!

OR Holder could simply arrest them for "Manufactured Insider Trading!"

Others for Misrepresenting products as LOW RISK "AAA" when they were HIGH RISK!

These are both Fraud Charges that are on the Books and many will qualify as Felony Charges.

The LAWS are ON THE BOOKS to do this Today or Tomorrow!

[4TJefferson]

Philip. Touche'. I would still like to run them out of town on a rail

[NOMORECROOKS]

This is the day of reckoning

Why does stock market keep going up when economy is failing? DJIA should be down 200 points today. biden says we are in deep recesion; the deepest in 100 years...need another stimulus. No confidence, but confidence men of Goldman and bank of America. bad tim to buy stocks.
good articles: http://www.investmintideas.blogspot.com

[PhilipTaylor]

IT IS A FELONY: "MANUFACTURED INSIDER TRADING BETS" PAID OFF for G0LDMAN and the Rest!

Sub-prime = small or zero down loan

Even 10 to 20% down loans = Negative territory after a 40% to 60% decline in most markets.

Wall Street = NO care where the mortgages for their derivatives came from

Wall Street = needed "SURE FAIL with TRICKS and TRAPS" Mortgage FODDER to make into Sure Fail Derivatives

Banks + Hedge Funds = Placed Massive Casino Bets the Mortgage Derivatives would FAIL

Banks + Hedge Funds = Sat back and collected on their Manufactured Insider Trading Bets!

Finale = everything imploded in on Banks and A1G and then Main Street footed the $14 Trillion bill

Wall Street Greed and Corruption = Rewarded By Geithner/P­aulson/Sum­mers + Obama/Emanuel

Wall Street GAMED the Failure of America's Housing!

This is a PURE and SIMPLE FELONY CHARGE!
__________­__________­__________­__________­___

It was a relatively simple scheme with many accomplices along the way.

1. Mortgage servicing subsidiaries of i-banks or contract servicers utilized MORTGAGE SERVICING FRAUD to manufacture bogus defaults.

2. I-banks targeted certain mortgage REITs for servicing fraud which were then listed in ABX series of 20 REITs which changed every 6 months.

3. Then their traders using this insider information shorted those REITs with Credit Default Swap bets on ABX Index.

4. Despite toothless FTC settlements Mortgage Servicing Fraud goes on because Wall St. makes more money through dishonest servicers manufacturing mortgage defaults and foreclosures than it would otherwise.

[PhilipTaylor]

Chef Martha paid for something far less Catastrophic and Calculated!

[PhilipTaylor]

Shrinkage is GOOD in Banking!

1980 Banks made up 10% of the Market's Value
2008 Banks made up 40% of the Market's Value

Banking has become a Manufacturer of TOXIC DEBTS that has hurt our reputation Worldwide!

Banking must return to a support FUNCTION of a "REAL" Manufacturing and "REAL" Services Economy!

Automate the mathematics and databases of the Banking Function and downsize the Middle-MEN who take EXCESSIVE FEES, Charge Massive Rates, and Refuse to put their money into INVESTMENTS that have RISKS (preferring FAKE investments where Risks are removed)!

An Automated Government Bank is in OUR FUTURE for Main Street Manufacturing!

[loki]

just remember , these sharks, con-men, ivy greeders, are now feeling deprived and hungry for more.
They will find new ways to rip you off. They know you will become brain dead with the thought of quick , large return on your money and they will take advantage of that. Just imagine 1000s of tiny Madoffs running around in a building all trying to find the next sucker for their scheme.

[BobsNotWorking]

Economic stability means boring banks and dusty uninteresting equity markets. Doesn't sound like much fun, but that's where we need to be.

[drkazmd65]

Yep. Community Banks should be boring. Any bank that works outside of large-scale equity investment should be boring. And there should be a barrier to risky investments to consumer and personal banks again.

A bank should give a good, safe, predictible yeild to its stockholders. A bank should not make it's CEO rich, UNLESS it makes it's own community rich in the process.

[PhilipTaylor]

1980 Banks made up 10% of the Market's Value
2008 Banks made up 40% of the Market's Value

Shrinkage is GOOD in Banking!

Banking has become a Manufacturer of TOXIC DEBTS!

Banking must return to a support FUNCTION of a "REAL" Manufacturing and "REAL" Services Economy!

Automate the mathematics and databases of the Banking Function and downsize the Middle-MEN who take EXCESSIVE FEES, Charge Massive Rates, and Refuse to put their money into INVESTMENTS that have RISKS (preferring FAKE investments where Risks are removed)!

An Automated Government Bank is in OUR FUTURE for Main Street Manufacturing!

[ErnestineBass]

Spellcheck, fer crissakes.

Disappeared.

[brownstoness]

With consumer deleveraging and credit crunch - we cannot have any quick recovery - L is best case scenario. Speculative stock buying and PPT euphoria is no substitute for anything.

Credit is falling so much - private credit decreased by $1.8 Trillion is the first quarter, consumer credit by $90.7 billion (annualized). Household net worth down by $13.87 trillion.

There is no trigger for recovery - new technology, new markets, demographics, new ideas. Green is just a boondoggle and BRICs can only do so much. JPM and GS etc are just trying to create another bubble - it suits their ends not yours.

hat tip to http://iamned.blogspot.com

[noneIn2008]

It is a contrived bubble:
http://www.rollingstone.com/politics/story/28816321/the_great_american_bubble_machine/print#

[adamnb]

that article may become the most popular ever printed. What do you think about the prediction that that cap and trade will be the next bubble?