schulte at teacher.com
Mon Dec 1 15:32:12 CET 2008
For Lars: "political correctness" in my last posting means that certain
policies put in under the Clinton administration, and later supported by
the Democrats and then Republicans in the last decade, forced American
banks to loan money in areas where they should not have, i.e. the
so-called "sub-prime" mortgages.
I mentioned the "bubble mentality" created thereby in the real estate
market, and a bubble is always the same as irrational greed. Uncle
Scrooge would never have gotten involved in such things!
So you are right! Greed and interfering government policies catalyzed
the chaos right now. But stay optimistic: About 3% to 5% of the market
has adversely affected the entire market: but in the end, if the
government(s) do not take too many incorrect actions, things will settle
down. 95% - 97% of Americans pay their mortgages on time and are
employed. This is not even close to a depression with e.g. 30%
And you can do worse than follow Scrooge McDuck's example! Buy stocks
when they are low, sell when they are high, avoid bubble mentalities, and
stay cool in a panic!
L. Schulte had written:
Scrooge would never have gone bankrupt by investing in subprime
> which were mainly about political correctness in getting mortgages to
> people without the means to support a house or pay a mortgage, and then
> "bundling them" to be sold to investors higher up the food chain in an
> irrational bubble market.
Let me get this straight: the current financial and economic crises which
are causing lots of firings, factory closures, loss of pensions,
bankruptcies etc. etc. all over the globe are *not* primarily caused by
irresponsible greed in the financial sector in combination with
international political instability and failed economic policies... but
rather by "political correctness"?!?! (Whatever "political correctness"
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