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There is no argument that the market for a lot of stocks was completely out of control. When stock charts are a 90 degree angle, trading on average at 25:1 pric

• lotsofpulp 7y ago
  It's all relative based on what people's options are. What if the government comes out tomorrow and says they will start buying stocks to prop up the values? You're always invested in something, whether it be cash, land, resources, equity, guns, food, water, etc. If you think a handful of large corporations will continue to gain power, it might make sense to pay 25x.
  • overcast 7y ago
    No doubt government will try to do that, they are also running out of options. Those are always temporary. Look what happened to the latest rate change.
    • lotsofpulp 7y ago
      Not all governments are equal. The US has a lot more runway to devalue the USD than pretty much every other country.
  • tobias3 7y ago
    The argument would be that there's too much savings chasing too few investment opportunities. That causes investment to become speculation with periodical bubbles that do nothing to direct investment into productive areas. The thing is, there is so much opportunities with long-term pay-off. E.g. high speed rail, transitioning to renewable energy, research into new technologies, etc. they just seem to lack political/societal (or generational...) will? If the FED or EZB starts buying stocks like the BOJ, like some economists already propose, I'll see that as direct transfer to retirement savings btw. and further encouraging misdirected investment, especially if there is even a notion of doing it for propping up the stock market and not to increase inflation. Needless to say, I'd be very angry about that.