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This reminds of the .COM era when a lot of "experts" were calling for people to "keep believing" so things could keep going. The financial system should be base
by Ididntdothis 7y ago
This reminds of the .COM era when a lot of "experts" were calling for people to "keep believing" so things could keep going. The financial system should be based on hard facts and not sentiment. If the situation was stable then negative news shouldn't have much of an effect since the fundamentals are solid.
- curo 7y agoWouldn't a distortion be damaging either way? If all the bulls tell us to keep believing beyond the hard numbers, then we'll end up with an economic fallout. If all the bears tell us its worse than it really is, we'll end up with a deeper and wider recession.
- baby 7y ago> If the situation was stable then negative news shouldn't have much of an effect since the fundamentals are solid that's not how it works though, markets can be irrational and follow human emotions. Crisis can happen just because of unfounded panic.
- Ididntdothis 7y agoI know this is not how it works. But telling people to not talk about negative things makes the market even less rational. I would argue that more negative talk would have slowed the build up of the .COM and real estate bubbles and avoided the following major crises.
- Karunamon 7y agoNo such thing, I'm afraid. How people spend their money is going to be based, in large part on sentiment at the end of the day. That old saying about the ability of "the market to remain irrational longer than you can remain solvent" has a lot of truth behind it.