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You can't make money on interest by putting it in a bank anymore, nor can a bank make money by loaning money. Pretty much all the Mom and Pop banks in the US have been bought out now, and ordinary citizens are forced to invest or forgo retirement. That puts a lot of money in the market. When large investors sell out at huge profits, the market takes a dive, and the same stocks can later be bought back for pennies on the dollar, by said large investors, leaving the steady long term investor to somehow manage the losses.
It has become easier to make money buying and selling than by actual investing. Much easier.
Raising interest rates would make a lot of sense, as unpopular as that might seem. Today's market would seem to point to real estate as a sensible investment, assuming there are no bubbles in that market.
Today the stock market is again at an all time high. What does that portend, and who can we point the finger at when we make our next killing ? I don't think it is just the Dems...
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