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Thread: Explain this to me please

  1. #1
    Corn Burning Fool giff57's avatar
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    Explain this to me please

    Ok, so the stock market has been crashing for months because of the threat of war. Then today, when the war is virtually certain, the thing goes crazy. WTF? I don't get it.

  2. #2
    Cyburbian Emeritus Chet's avatar
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    Dude, I was just about to start the exact same thread. I heard it's because foreign policy analysts came back with a report that they expect a similar timeline to 1991 (i.e. over and done in 100 hours).

  3. #3
    Cyburbian Plus PlannerGirl's avatar
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    im not sure i get it as well but maybe folks are ready to just be "on with it" and get on with our lives. the dark cloud of not knowing whats going on is hard.
    "They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." Ben Franklin

    Remember this motto to live by: "Life should NOT be a journey to the grave with the intention of arriving safely in an attractive well preserved body, but rather to skid in sideways, chocolate in one hand, martini in the other, body thoroughly used up, totally worn out and screaming 'WOO- HOO what a ride!'"

  4. #4
    Cyburbian Tom R's avatar
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    stocks

    Simple. War is good for business. The ultimate in consumption and a bottomless government contract.
    WALSTIB

  5. #5
    Cyburbian Cardinal's avatar
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    Re: stocks

    Originally posted by Tom R
    Simple. War is good for business. The ultimate in consumption and a bottomless government contract.
    The threat of war makes people wary, hence they hesitate to purchase stocks. There are also other concerns, such as the move to more stable investments (gold, etc.) and rising oil prices with concerns over supply, that divert funds from stocks.

    At the start of a war people assume a quick victory and the usual results (a surge in confidence, lower oil costs, increased spending, etc.). As a result, they want to get in quickly, when prices are low.

    I think that is a dangerous strategy this time around. There are underlying problems with the economy that will not go away with a war and/or victory in Iraq. I think the uptick we see will be short-lived. The market will only begin to rise once there is a prolonged economic expansion.

  6. #6

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    Short lived blip

    Mike's right.

    And, don't forget the doomsayers COULD be right-we could be in for a nasty period of terrorism and firefights around the world.

    One commentator said that the whole American economic boom was largely based on a combination of foreign capital inflows (down 78% from 2 years ago) and a relatively cheap dollar. (He also said that the only thing that would "solve" the economy is a REALLY nasty Depression to blow out all of the excessive production capacity in the world economy. Let's hope not)

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