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View Diary: They Are the 1% - A Really Scary Follow Up (95 comments)

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  •  What really drives me crazy about bubbles is (3+ / 0-)

    that we know they are bubbles when we are in them, yet we keep along as if we think that this time the bubble won't burst. What if we just, I don't know, didn't buy any more tulips and worked to move the economy to something with a sounder foundation?

    •  "This time is different" is (4+ / 0-)

      the groupthink that sets in when greed is winning the day.  

      Those that clearly see an economy heading for a cliff are not only ignored but denigrated as pessimists, naive, etc.

    •  People love inertia. (2+ / 0-)

      Sounds counter-intuitive to such a nation of productivity as the USA. :)    But, in reality, people are afraid, especially when it comes to money, to make changes when everyone else doesn't agree.  

      My wife conducts research on the relationships between people and money.  Basically, they're afraid to make a bold move like getting out of a bubble before it bursts and the financial industry takes advantage of that.  The movers and shakers who really do understand the markets see it coming and adjust accordingly while the rest of the retail investors take the hit like chumps.  Additionally, the average financial advisor has their own agenda, which is essentially keeping your money in their hands.  They don't want you to make big changes either unless it benefits them.    They also know that you're likely to keep your money with them for the same reason, even if they screw-up.

      Simple fact is that most people don't understand when to get out of a bubble and really don't want to for fear of missing out.  I go by the other Buffet rule. Only invest in what you know.  

      Would we be so happy to have a military that dwarfs all others combined if it was a line item deduction on our paychecks next to FICA."

      by Back In Blue on Mon Oct 10, 2011 at 12:53:49 PM PDT

      [ Parent ]

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