Lessons from the crash of 2008

At his recent Real Vision interview with Kiril Sokoloff, Stanley Druckenmiller predicted that the next crisis will also be a liquidity crisis.
 
Only introducing more regulations to discourage mere speculation will prevent another financial crisis. 2007-08 crisis was caused by speculation.
 
gkishot said:
Speculation & risk taking are the driving forces of economic growth.
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They provide liquidity to the market but that does not mean they are the driving forces.
They inflate prices, create bubbles and eventually trigger crashes, so they were blamed for real estate bubbles in 2007-08.
But I know where you get your idea from ... TEXTBOOK
 
victorycountry said:
Only introducing more regulations to discourage mere speculation will prevent another financial crisis. 2007-08 crisis was caused by speculation.
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as If a likely new PhD like yourself would know what speculation looks like. The Sec has never defined insider trading. The Supreme Court has never defined pornography except to say they know it when they see it. speculation which includes excessive speculation in your universe is the core of a free market system.

I wish you well. back to the ivy tower for you before you lose your shirt in the real world.
 
Thanks for your priceless advice, dear.
The key role that speculators play in bond, metal, foreign exchange,stock index and commodity markets,is creating bubbles which are eventually followed by crashes. Believe or not that is the truth , dear. 99% significant results from tick data over the period from 1996to 2017. They are not interested in enhancing the growth of economy. You cant disagree with me on it dear.

Oh, I had been a trader before my phd and I am still a real world trader dear

zdreg said:
as If a likely new PhD like yourself would know what speculation looks like. The Sec has never defined insider trading. The Supreme Court has never defined pornography except to say they know it when they see it. speculation which includes excessive speculation in your universe is the core of a free market system.

I wish you well. back to the ivy tower for you before you lose your shirt in the real world.
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No lessons were learned and this is why next one will be even worse, but not as bad. More injection and negative savings rates, high unemployment.... Then another bull cycle, then the crash after it will be the mother off all crashes.
 
zdreg said:
https://finance.yahoo.com/news/wall...-learned-2008-financial-crisis-115657210.html

should any of the lessons be disregarded?
are there any lessons that should be added?
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Some of those lessons are not really lessons though but common sense and basic level of moral behavior that you are supposed to exhibit regardless whether there is a financial crisis or not. I guess for Wall Street it's actually something that they have to try hard to learn.

I think there are 2 lessons that people should take away from the financial crisis of 2008:

1. No asset is a safe asset. People used to think real estate and subsequently mortgage is the safest asset on earth that can always hold value. Think again.

2. Never believe in anything blindly and always be vigilant and don't be afraid to think for yourself and disagree with everyone else.
 
victorycountry said:
Only introducing more regulations to discourage mere speculation will prevent another financial crisis. 2007-08 crisis was caused by speculation.
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2007-2008 financial crisis was caused by fraud and lack of effective oversight. Regulations should be on cracking down on fraud and promoting honest business based on good faith.
 
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