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Not selling was the right thing to do (since 87 & LTCM) because the Fed came in and bailed everyone out. This has led to the huge inequality problem and the big
by zz865 5y ago
Not selling was the right thing to do (since 87 & LTCM) because the Fed came in and bailed everyone out. This has led to the huge inequality problem and the biggest asset bubble in history, and now everyone assumes the Fed will bail out everyone next time as well. The problem is one day it wont happen and a lot of people will get burned. Maybe it'll be next year, maybe it'll be generations following you.
- TuringNYC 5y agoAll great points, but one things is for darn sure -- the best course now is to assume a bailout from the Fed. Not doing so means you miss out on the upside. In the chance event they dont bail out [rich folks and asset holders], we're all in trouble anyway, so whats the point being right in that case?