Yes, please ring a bell (on time preferably, unlike the last time) when recession starts and bottoms.
It already rang. It was ringing when I was posting questions about who was picking up securitized loans (mortgage backed securities). The pre-bell was when people were warning about the excessive exotic mortgages and house prices being way out of line with rents. There have been several discussions on this board of potential ways of the Federal reserve handling the problem.. and why just lowering the interest rate may not be possible. Out of recession bell TBD in a few years.
Are you saying that hedge funds are guranteed money after the usual 21+ percent management fee? Who needs ’em.Plenty of bear funds, precious metal funds, ETF’s, etc for turmoil in markets.
You don’t understand the management fee. There is a fixed management fee + a percentage of the profits. No profits, you get hit with just the fixed fee. Your statement on bear funds is correct (though many of these have high management fees). There are alternatives for people with liquid assets(also investing in other countries is an option). My statement about the middle getting screwed has to do with those who have most of their money tied up in non-liquid assets (most of the middle class). Poorer people rent, richer often own outright, but not all of their money is tied up in a non-liquid asset.
Look at what’s happened- corporate profits, thru the roof. Executive compensation, likewise. Bonuses for Goldman ,16 Billion.Wages for the average Joe- stagnant.
Only certain specific industries have had profits through the roof. You are obsessed with the dollar amount, not the value being bought. If I receive 50 billion dollars and it is enough for me to buy a city block, or if I receive 50 million dollars and I can buy an entire city (same size, effectively same location).. which would entail greater value gain? Tumultuous situations is where the real wealthy and the smart investor makes their money. It is when the market is at its least efficient.
