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> After all, when there's a market crash, did millions of machines in factories fall apart... In 2008, the crash happened because suddenly Wyle E. Coyote reali
by bb88 7y ago
> After all, when there's a market crash, did millions of machines in factories fall apart...
In 2008, the crash happened because suddenly Wyle E. Coyote realized there was gravity when he ran off the cliff. Mortgages were actually defaulting on a very high rate, but people put blindfolds on and didn't want to see. It wasn't just a "psychological overreaction" but real fear and panic as those same investors were trying to squeeze through the same exit door as everyone else.
There is still some reasonable fear in 2019 that large financial institutions will choose to make money at the expense of the economy.
- lonelappde 7y agoIf you were invested in the broader market, and didn't move your whole portfolio in our out of cash in 1 year,the 2008 worldwide economic collapse was barely a blip in long term performance.
- bb88 7y agoSo you're point is exactly what again? It's okay for banks to manipulate the markets because in the end it all averages out?
- danw1979 7y ago> It wasn't just a "psychological overreaction" but real fear and panic as those same investors were trying to squeeze through the same exit door as everyone else. Panic is quite literally a psychological overreaction.
- bb88 7y agoSo if only people had acted rationally while they were losing billions of money, things would have been okay?