The post below came from my Website
I am thinking about building a new website
and wanted to put my blogs here where I
started blogging so I would not lose
them in a process of changing over
and they would still be available for reading.
Boom to Bust and Back
My experience in 50 years of stock marketwatching is that there is usually an index leaderthat usually precedes the fall of the whole marketIf you listen and watch carefully for signs that a particular part of the economy is doing extraordinarily well and then start following anindex or a basket of stocks in that area of the economy you will probably notice a decline thatwill preceed the whole market by several months-
Early in 1999 the Technology Stocks reached their
High and started to fall.Within a year S & P 500
and the rest of the Market started to crash.
It reached the bottom in 2002 (It was not caused by 9/11)
The Technology Bubble Greed had caused a Recession
on the Bush watch. He wanted it over fast.
He cut Taxes of the Rich and lowered interest
rates on mortgages to pump up construction.
It work so well that they kept them low and
invented new types of 100% mortgages including
the ARMs and other sub prime contracts.
Bookers sold them any way they could to earn
the big commissions. They sold the bad
mortgages to banks. They could get rid of
them to private investors as securities and raise
The bubble grew ever bigger until the Builders
finally built too many houses. Supply out
stripped demand and prices started to fall.
The bad mortgages began to default and prices
fell farther.The mortgage securities started to
fail and in the fall of 2008 the cards came
tumbling down. Greed had again hurt the
working man and made the Bankers richer.
The Taxpayer bailed out the big banks and
unregulated Capitalism had come full cycle again.
Greenspan said we just missed the signs. Now we
know what to look for. We don’t need to over
regulate the banking system.
As they say in Battleship Galactica “This has all
happened before and it will all happen again”
As Cassius observed in Julius Caesar.
“The fault, dear Brutus, is not in our stars,
But in ourselves, that we are underlings.”