Old 05-31-10 | 10:41 AM
  #19  
ModeratedUser150120149
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Joined: May 2008
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Back to the OP's original question.

To even attempt to understand the current US, and for that matter the world's, economy one has to spend some time studying history. Otherwise, we get caught up in a lot of emotion and political combat that rapidly becomes counterproductive. Assuming of course the question is a serious one and not just something to drive up post count.

Way back when I was taught a tool that I have found to be very useful. That is to always Follow The Money. For example: When purchasing a share of corporate stock on any of the major stock markets the buyer needs to ask: "Who gets my money?". It is commonly thought that the company that originally issued the stock gets the money. It is more accurate to say that the seller of the stock gets the money. The seller in most cases is just another person or investment fund, not the actual company that issued the stock. So, one rapidly understands that the linkage between corporations and the stock market is at most a very flimsy, loose rubber band.

History is important because it reveals that the major financial firms used to be partnerships, not stock issuing companies. One has to ask some questions: "Why did they change?" "What effect has that change had on US and the World economy?"

To keep this tied to the OP's question and not start political rabble rousing I'll stop here. Also, frankly, if any person doesn't have the gumption in this information age to do the research to understand what is being said by our financial leaders there is no hope they will benefit from a discussion here. So spend more time researching economy and less listening to those who would have you blindly follow them. After all, whether more or less, it is your money.
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