Reply to: And so the casino cycle begins again....

[Freamon]

Yes I posted this on the student demo thread. They are furious about a £9K debt to get a university education but can't see any problem taking on a £500K debt to get a bedsit over a kebab shop when they leave. Crazy!

Exactly as TPTB intended.

[DimPrawn]

That's not quite what they were saying. It's in a bit more detail here:

What's Wrong - Fractional Reserve Banking

Even on a simple level, it appears that stupid lending practices caused this mess. I've no idea why the students are so worried about £6-9K/year fees. Just look at the cost of housing.

Yes I posted this on the student demo thread. They are furious about a £9K debt to get a university education but can't see any problem taking on a £500K debt to get a bedsit over a kebab shop when they leave. Crazy!

[The_Equalizer]

Nonsense. Banks have had the power to create money under FRB since long before computers existed.

That's not quite what they were saying. It's in a bit more detail here:

What's Wrong - Fractional Reserve Banking

Even on a simple level, it appears that stupid lending practices caused this mess. I've no idea why the students are so worried about £6-9K/year fees. Just look at the cost of housing.

[Jog On]

Do you really think 60% share raises overall (not specific companies that can make breakthroughs) is sustainable?

No, doesn't stop it happening though:

"Stocks don't sell for what they are worth, but for what people think they are worth."

- Garfield Drew

Link

[Freamon]

Not what you're getting at, but an interesting read about proper banking reform:

Positive Money

Laws that make it illegal for you to print your own £5 or £10 notes have been in place since 1844. But those laws haven't been updated to account for the fact that almost all money now is electronic. Because of this loophole, banks worldwide now have the power to create money, effectively out of nothing.

Nonsense. Banks have had the power to create money under FRB since long before computers existed.

[lukemg]

This has been my Plan B for many years. Got a varied mix of uk, euro, asia and ROW funds bought over time that are steady but it has to be said unspectacular - about 8% annual return for the last 13 years.
Tend to buy and hold and although it's looking like bubble time, next lot will be heading to asia and other emerging markets.
Got a few individual shares bought in the dips - BP, Barclays (now at price paid for them.) and some BT stuff from way back worth half what I paid....

[The_Equalizer]

<Alex Jones> I blame the Illuminati </Alex Jones>

A Secretive Banking Elite Rules Trading in Derivatives.

Not what you're getting at, but an interesting read about proper banking reform:

Positive Money

[The_Equalizer]

You think the FTSE is bad then you should try AIM. Although in a healthy profit over the year the Falkland Oil stocks have been one mighty rollercoaster. Junior oil exploration, always good for an early heart attack.

[Clippy]

<Alex Jones> I blame the Illuminati </Alex Jones>

A Secretive Banking Elite Rules Trading in Derivatives.

[Platypus]

How much will your £50K of stocks be worth in a years time?

Answer, no one knows.

I thought these days investors who lose money just whine to the government, who then 'compensate' them, e.g. Equitable Life

[AtW]

I'm disappointed that it only went up 60% this year. It was far better the year before.

Do you really think 60% share raises overall (not specific companies that can make breakthroughs) is sustainable?

[Jog On]

I'm already in there like "big time"....

Mostly emerging markets, China, Thailand, Russia etc..
I'm disappointed that it only went up 60% this year. It was far better the year before.

I'll be doing this next year as well although with about 20% of my equity - the rest in a trading account for FX/commodities/CFDs etc.

[BlasterBates]

I'm already in there like "big time"....

Mostly emerging markets, China, Thailand, Russia etc..

I'm disappointed that it only went up 60% this year. It was far better the year before.

[DimPrawn]

£50K in the bank is a cast iron guaranteed loss in real terms though, and it looks likely to stay that way. It's a question of whether losses from shares will be worse than 5 or 10% inflation.

How low can a share go and how far can a market fall over 12 months?

All I'm saying is the stock market isn't a savings account, which is what some of these articles are trying to paint to the sheeple.

[TimberWolf]

With the banks offering pitifully low interest rates, more investors are switching their attention to the stock market, says Ian Cowie.


Let's see. Put £50K into a bank account and in a year you'll have a little over £50K in there.

How much will your £50K of stocks be worth in a years time?

Answer, no one knows.

£50K in the bank is a cast iron guaranteed loss in real terms though, and it looks likely to stay that way. It's a question of whether losses from shares will be worse than 5 or 10% inflation.