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Re: The Greatest Danger Investors Face


@Capital wrote:

@chang wrote:


What’s more fun than spending someone else’s money?


I posed this question to both the teenager creatures that live in my house last night. Neither of them seemed to understand the words coming from my mouth. It seems to be par for the course these days. I just don't understand how such cute cuddly creatures they once were could have morphed into these - well I think I will just stop there with this post. I now know what the greatest danger as an investor might be that I face.


While poster Learner is the original poster of this thread, I'm glad you agree with me..and thus you can stop posting now, as you stated.  :-)

R48

 

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Re: The Greatest Danger Investors Face

There are two great dangers I face in investing. The first is myself. Bad decisions, following bad advice, poor (or no) planning, hasty decisions, panic selling are responsible for most of the bad things that have happened to me. The second is the government. They are responsible for every financial crises we have had. The Federal Reserve just makes it worse. The next great crisis will be their doing. At the moment, hyper inflation is at the top of the list, as they have done a "good" job of laying the foundation. Now, how do I protect myself from both a stock market crash and hyperinflation?

At least I am old and retired. I should be able to survive. My children and grandchildren?????

Jim

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Re: The Greatest Danger Investors Face

@JimD2 

Yes, the minority view that debt and deficits don't matter is now generally accepted as normal policy. After all, everyone is doing it, so it must be OK.

I admit to having trouble seeing this stuff clearly. What will the endgame look like? We're all addicted to easy money, spending our way out of every crisis.  Keynes to the max.  Party on!

giphy.gif

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Re: The Greatest Danger Investors Face

Difficult question, norbert.  We are in uncharted territory only because it seems safer than its alternatives, at least in the short term.  Cheney said, "Deficits don't matter." to Paul O'Neill's amazement almost 20 years ago.

Maybe it works until it stops working.  Maybe we do it at the expense of long-term growth.  I do not have a clear vision when it comes to this issue either.

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Re: The Greatest Danger Investors Face


@Learner wrote:

Difficult question, norbert.  We are in uncharted territory only because it seems safer than its alternatives, at least in the short term.  Cheney said, "Deficits don't matter." to Paul O'Neill's amazement almost 20 years ago.

Maybe it works until it stops working.  Maybe we do it at the expense of long-term growth.  I do not have a clear vision when it comes to this issue either.


How will deficit spending ever end when the federal government has an unlimited ATM, AKA the federal reserve, as the lender of last resort who will provide $Ts at below inflation Interest rates? What if the only road for long term growth is increasing the national debt every year To increase spending? US Govt economic Policy has come a long way from the Hoover administration which raised taxes during the depression to balance the budget to prevent decline in the value of the dollar.

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Re: The Greatest Danger Investors Face

@norbertc-- I recall some of your posts on the previous forum. I would suggest that one of the greatest dangers investors face is that they are probably much older than Scarlett Johansson, even though she is still a looker at age 35.

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