Global Economic Crisis

Nope.

Honestly, this is the first I've heard of a global economic/financial crisis, and I get WSJ updates.

The only crisis I've seen mention of recently had to do with the lending industry and sub-prime loans in the US, which is affecting a number of different areas (hedge funds, banks and lenders, the housing market as a whole, and now the automotive markets). 

In all seriousness, I am a buy and hold sort-of-guy... so market fluctuations, even meltdowns, don't worry me, and I'm only 36.  Now if I was of retirement age, then it might.

In fact, I hope the market melts down.  Can you say "buying opportunity?"

The way that I see it, this is just the market correcting itself.

We are clearly in a part of the business cycle where credit is tightening up. I personally see this as a very good thing.

Too many folks with regular incomes and good credit were getting sucked into Alt-A and Sub-Prime loans. Way too many loans were made to folks with "Penciled in Incomes" with "No Doc" loans even when they had a verifiable income stream. (Hint: The Penciled Numbers were way higher than what what would have been verified)

Now it is just time to pay the price for all of this easy money

The really good news is that the panic that seems to be gripping the markets just now is making lots of securities in the equity market really cheap. (Just stay way from Mortgage Backed Securities)

Dollar cost average, so when the market drops like it has, that’s good.  Actually I hope that every month when the money moves from the bank to the investments that the fund prices have tanked because I want more shares for my money.

If you want a good indicator of the market, find a chart of the births in the baby boomers generation (1946-1964) and overlay that with the Dow Jones chart.  If I had time to find those now, I would.  It’s interesting what you see.

From what I’ve learned, on average the market goes in 5 year cycles.  The question is, Where in that cycle are we?  (answers will vary).

EDIT:  Don’t know what effect the Gen X or Gen Y will have on the market.  About 70 Million baby boomers where born, Gen X is about 60 Million, Gen Y is about 80 Million.

I’m more concerned about how the media blows this stuff our of proportion and scares the heck out of the average person and they end up doing stupid stuff out of this anxiety that is shoved down their throats.

The average person buys high and sells when it tanks.  Yeah, the goes against what we were even taught in high school

If I recall my Warren Buffet quote correctly, I think it was (or at least part of it):  When the average investor panics, I start buying.

Not too long ago I had jack squat.

If I go back there, not a problem.

ETA: This "mortgage meltdown" surely can't be surprising anyone given the growth rate of mortgage debt relative to wages over the last decade.

You mean you have no sympathy for those folks that sucked all of the equity out of their home with Interest Only "Flex" Loans and wagered Invested it all in the stock market on Margin?

I was told by more than one Mortgage Broker that this was a very saavy investment strategy and based on past performance of the stock market, was guaranteed not to lose.

I am certain that the flood of margin calls in the coming days will shake things out even better.

Thank you for that.  I’d been thinking of getting my investment licensing back (Series 6 and 63) and that post is just more fuel to the flame to do so.  So many people are being taken advantage of and I can get back in that field to be a truth teller and help people (much better than I can being an engineer). 

BITE YOUR TONGUE!!!!!  more like Transportation Guessers.

Now back to the original topic....................

x2

don't get me started on the media and/or marketing folks and their use of fear to sell you their product or get you to read/watch. financial stuff, the food you eat, terrorism, identity theft, home security systems, vaccines in kids and autism, the list goes on and on...

oops. I got started. I will stop now.

Glad to be able to help

Their really is a lot of truth in this statement. There are several very interesting indicators in the market that attempt to measure when individual investers start buying. (It is usually seen as a sign that the run of a bull market is about done)

One of the more interesting indicator is "Odd Lot" trading (I think the WSJ still publishes this number).

The theory is that institutional investers buy and sell in 100 share lots while individuals (John Q. Public) rarely do this. They purchase equities in odd number of shares. (Usually because they do not have enough to invest in 100 shares at a time)

 You mean the media is not looking out for our best interests?  They don't report only the news?  THEY ARE NOTHING MORE THAN A HYPE MACHINE?!?!?!  SAY IT AIN"T SO!