Preparing for the Inevitable Bursting Bubble

[ShockediSay]

Source: NYTimes

Financial bubbles are a way of life now. They can upend your industry, send your portfolio into spasms and leave you with whiplash. And then, once you’ve recovered, the next one will hit.

Or so you might think, as a veteran of two gut-wrenching market declines and a housing bubble over the last decade.

There’s plenty of reason to expect more surprises, given the number of hedge funds moving large amounts of money quickly around the world and the big banks making their own trades.

Read more: http://www.nytimes.com/2010/02/27/your-money/27money.html

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Several good reasons to restrict big bank proprietary trading {the so-called Volcker Rule}

Big bank proprietary money dramatically worsens bubble busts {under which the world now suffers currently, ever more so than in the past}

Big bank proprietary money is unhesitant in pulling money out of an economy by marketing securities then pulling out perhaps more, 'betting' against these securities, as was the case in both the subprime debacle and apparently the case in Greece.

Screw the Big Banks and their overpaid lobbyists. The greater good of the populace require that these things be disallowed.

[pretzel4gore]

1. instead of closing barn door, they tore down the barn

the corruption of our culture ceaselessly amazes- even me. And i believe the moon too, not just good old plan urth, is flat!

[niceypoo]

2. They need to make a new law

Your company gets bailed out, your company gets broken up.