http://finance.yahoo.com/news/Stocks-extend-plunge-on-apf-892184148.html?x=0

says today some guys tried to sell $ 16 million worth of stock and he accidently typed in $ 16 billion instead, and that might be what caused the big crash. Am I the only who thinks it’s hilarious that our system is so fragile this could even happen?
“One possibilility being investigated was that a trader accidentally placed an order to sell $ 16 billion, instead of $ 16 million, worth of futures, and that was enough to trigger sell orders across the market.”

Best answer:

Answer by Ryan M
Very hilarious, but VERY scary at the same time. What prevents someone from doing this on purpose to crash our economy and create Great Depression-like panic??

Give your answer to this question below!

Everywhere you look at the moment you see the headline ‘Crash In Stock Market’ followed by words of fear and uncertainty. Every news update on the radio and television opens with the latest updates from the stock market. “Stock Market prices have been slashed” or “The Stock Market crashes again”. Never before in my life have I heard such out of control fear and reporting on a stock market crash. Stock market crashes have happened before and I can promise you that they will happen again but is this the worst crash in the stock market that we have ever seen? If you ask the media “YES” but to be honest I don’t really care. I think we should focus more on how to deal with it rather than just getting ourselves stressed and fearful.

When are we going to see the headline?

’Crash In Stock Market – Once In A Lifetime Opportunity?

Because in reality this is exactly what it is? There are two main way to take advantage of this Crash in the stock market.

1. Understand how to make money from a falling market. You can pay for every stock market report etc. but I think you would all agree that for the past few months anyone could have seen that the market was in a severe down trend. So without any stock market advice you would have had a good idea that the stock market would continue to crash. What you probably don’t know is that it is very easy to take advantage of this and make truck loads of money. In fact professional investors love it when they see headlines such as ‘Crash In stock Market’ because the market moves so quickly. Professional investors make more money during stock market crashes than at any other time. Why because they know how to take advantage of a Crash in the stock market.

I can hear you saying “how do you take advantage of a stock market crash?” Quite simply you buy ‘put options’ or as some people call it ‘insurance’. I like to describe it like buying insurance for a car that you don’t own – then when the car has an accident and looses half of its value the insurance company gives you half of the cars value in cash. I know it is a slightly weird concept but this is exactly what lots of people are doing. The best thing is that is completely legal and very easy. Could you imagine being able to buy insurance on a car that you don’t own once you already know that the person who is driving that car is blind and loves going fast? It is almost too good to be true.

2. The second way to take advantage of a crash in stock market prices is to simply buy when everyone else is selling. Now this is slightly scarier because even though some shares are worth half of what they were last year they still might keep falling. So you must be willing to go through some short term pain. If you are willing to do this then the 2008 Stock market crash may truly be a once in a lifetime opportunity.

Duration : 0:7:9

[youtube u6uK-Lcu2N0]

Duration : 0:3:41

[youtube 04_Y2rTSBms]

The current stock market crash has spurred a vital national debate about the causes and catalysts of the Great Depression. The dominant school of thought believes that the stubborn refusal of then president Herbert Hoover to intervene after the stock market crash of 1929, and his preference for free market solutions, led directly to the ensuing decade-long catastrophe. Through this lens, our leaders ure us that the most recent raft of government measures will prevent another episode of bread lines, Hoovervilles and pencil salesmen. As usual they have it completely wrong. In my view, the Depression was created precisely because Hoover followed the path that our government is now taking.

When the stock market bubble of the Roaring Twenties (which was created as a result of the loose monetary policy of the newly created Federal Reserve) finally popped, Hoover would not allow market forces to correct the imbalances. His policies were aimed at propping up unsound businesses, artificially supporting prices, particularly wages, and providing Federal funds for public works projects. These moves went well beyond the progressive reforms of Teddy Roosevelt, and established Hoover as the most interventionist president ever up to that point. In fact, much of what eventually became the New Deal had its roots in Hoover’s policies.

However, at the time, there were those who recommended a different course. Andrew Mellon, the long-serving Secretary of the Treasury whom Hoover had inherited from the prior two Republican Administrations, was labeled by Hoover as a “leave it alone isolationist” who wanted to “liquidate labor, liquidate stocks, liquidate the farmers, and liquidate real estate.” Hoover would have none of it. In fact, during his nomination speech for his second term, Hoover bragged, “We determined that we would not follow the advice of the bitter liquidationists and see the whole body of debtors of the United States brought to bankruptcy and the savings of our people brought to destruction.”

Hoover chose to ignore the sound advice of his Treasury Secretary (in contrast to today where the current Treasury Secretary Henry Paulson is actually leading the charge over the cliff) and instead used every tool at his disposal to “fix” the problem. As a result, rather than allowing a recession to run its course, with healthy and rapid liquidations of the mal-investments built up during the boom, Hoover inadvertently created what became the Great Depression.

When Roosevelt took office he continued the same failed policies only on a grander scale. The magnitude and the idiocy of many New Deal programs, such as the wage and price setting National Recovery Administration (NRA), compounded the problems. So while Mellon’s advice would have caused a sharp but relatively brief economic downturn (which occurred after the Panic of 1907, for example), the Depression plodded on for nearly a decade until the country began gearing up for the Second World War.

In an amazing feat of revisionist history, somehow Hoover’s interventionist policies have been completely forgotten. It is taken as fundamental that his inaction led to the Depression and Roosevelt’s “heroics” got us out. Unfortunately, since we have learned nothing from history, we are about to repeat the very mistakes that led to the most dire economic circumstance of the last century.

A major difference however, is that the structure of the U.S economy today is far weaker than it was in the fall of 1929. Years of reckless consumer borrowing and spending, and enormous trade and budget deficits have resulted in a hollowed out industrial base and an unmanageable mountain of debt owed to foreign creditors. Instead of the support of a strong currency backed by gold, the public now must deal with a modern Fed free to print as much money as politicians want. So rather than getting the benefits of falling consumer prices (as happened during the Depression), consumers today will contend with much higher consumer prices, even as the economy contracts.

With Barack Obama now waiting in the wings to conjure a newer New Deal, far larger than even FDR could have imagined, and at a time when we cannot even afford the old one, this will not be your grandfather’s Depression. It may be much worse.

Duration : 0:2:34

[youtube TfNgQ0x4htE]

Five parts

http://theinternationalforecaster.com/

http://www.infowars.com

http://www.prisonplanet.com

Duration : 0:9:48

[youtube 4G3EmDHYCKM]

This aired on July 24th, 2009 on CNBC

Duration : 0:6:15

[youtube 9qvinCSE9E8]

Five parts

http://theinternationalforecaster.com/

http://www.infowars.com

http://www.prisonplanet.com

Duration : 0:9:49

[youtube Rls5caCDeCM]

In 98 through 2001 I used to play part-time daytrader. You know the story, internet trading, forums, hot tips…

I was doing alright. Even though I only dabbled small time, I was making a little bit of money. The general wisdom of the day was ‘stock markets always go up’.

Then the dot com bubble crashed. I got killed. I was wiped out of just about all the gains I had ever made. I learned a huge lesson from that. You see, it turns out, there is no such thing free lunch.

Wealth is only created through creating things, tangeable things. Shares of derivitives, and stocks, and other goofy things, are just short term foolishness, inventented by those who are intent on seperating “fools from their money”

Imagine the folly of ordinary people, like me, thinking they are going to get wealthy from no labor or effort. There was a time when I thought my 401k was going to be my golden key to living it up in my later years. All I had to do was pump money into it, and it would magically grow…

That seems pretty silly right now.

If I had bought gold when I started daytrading in 1998 at $250 an ounce, I would have done better than anyone else. But, I listened to the “invstment advisors” that told me gold is not an investment, it’s only a hedge against inflation.

Well guess what, I should have ignored the advisors and bought the gold.

I did do one smart thing… I had been buying guns for about the last 18 years. Since I was a little boy, with a father on the police dept, I have sought enjoyment from guns. I have been, both a collector, and an accumulator. My wife has always thought of it as a rotten expensive hobby. But dad always said, “You’ll never loose money on guns, son”.

Image how this silly story turns out… My collection of guns have been my unintended hedge against this economic disaster.

As one of my youtube friends pointed out… All of HIS stocks have gone up 45% over the last quarter… AR-15 Stocks, AK-47 stocks, Colts, Smiths, Remingtons, you name it, all way up…

Gauging from the prices at the gun shops and shows, every gun I own, has dramatically increased in price… Some used guns are commanding prices, higher than even new.

How would you like to buy a brand new car at a dealership, drive it around for 10 or 20 years… Then take it back to the same dealership where he offers you double you paid for it?

Guns… good investment. Get ‘em.

Please comment, rate, and subscribe… Thanks!

Duration : 0:3:26

[youtube VyoAwSj8BxI]

Duration : 0:1:29

[youtube MTCKxye9_so]