I never invested in all those gleaming stocks when the stock markets were booming and also cautioned near and dear ones who were seeing good prospects in shares . Whole of the 2007 and in early 2008 i stayed away from media all of which was nostalgic about the ever increasing number on the Bombay stock exchange. I was one of the only old fashioned indian guy who don’t want to talk stocks when everyone around me was buying or selling something. But in the early 2008 the talk about looming economic downturn , market rationality and overpriced stocks were everywhere. many of my friends lost money this year. The stoks fall below breaking previous records way back in year 2000 the same shockers were given to peoples who have spend more time watching cnbc then their actual field of work.
I knew someone personally who have made a business of dealing electronically with the share brokers with their leased line connections and sharing this opportunity with every one who had to satisfy his greed for easy money in the country where gambling is illegal and in the era when home internet was just few bytes here and there and the internet banking was non prevalent. the guy broke when the stocks fell to bottom.
The US economic depression of 1930’s were much wider in scale and it have happened at the time when the us goverments involvement in money matter was non-existent. With the increasing unemployment the social bonds were broken government banned sale of alcohols, people lost their property and a culture of hoovervilles started. That was the time when al capone made fortune much have changed after that. The federal government increased their invovement in money and banking the communist world begin to anticipate the fall of capitalism. But capitalism prevailed greed prevailed and america rose to become worlds dominant economy.
The things that are good in a economic downturn.