Comments on: Two Ways You Could Hear That Real Estate Doesn't Work: From a Failure, or you Made it Up http://www.lifestylesunlimited.com/steve_two_ways_you_could_hear_that_real_estate_doesnt_work_from_a_failure_or_you_made_it_up/ The Education and Mentor Group for Real Estate Investing Fri, 16 Dec 2011 18:04:23 -0600 hourly 1 http://wordpress.org/?v=3.1 By: Nate http://www.lifestylesunlimited.com/steve_two_ways_you_could_hear_that_real_estate_doesnt_work_from_a_failure_or_you_made_it_up/#comment-27 Nate Fri, 29 May 2009 15:40:57 +0000 http://www.lifestylesunlimited.com/?p=1219#comment-27 Thanks for that explanation, Alfonso. I'll have to add that to the list of reasons why I don't believe in the stock market anymore! Thanks for that explanation, Alfonso. I’ll have to add that to the list of reasons why I don’t believe in the stock market anymore!

]]> By: Alfonso http://www.lifestylesunlimited.com/steve_two_ways_you_could_hear_that_real_estate_doesnt_work_from_a_failure_or_you_made_it_up/#comment-26 Alfonso Thu, 07 May 2009 18:03:53 +0000 http://www.lifestylesunlimited.com/?p=1219#comment-26 I don't think its unfortunate that Jim Cramer took the brunt of the John Stewart's complaints. Jim Cramer has admitted to manipulating markets when he was a hedge fund manager. These institutional investors will buy huge blocks of stock which sends up the price, then this creates a real buzz around that stock. More and more people buy into it because of the buzz and the "artificial" price inflation, and at that time the institutional investor will pull out and sell at a high. He's gained money for his investors, but thousands of other investors have lost money. In other words, the average Joe who is watching CNBC has lost money. This is how the stock market has worked for decades. Houston PBS recently ran a show that was about the market crash of 1929. This show sounded as relevent today as it was in 1929. Back then a few big money investors would manipulate the price of a stock by buying huge chunks of stock and then they could pull out at any time because it's gone up only because of their purchase of that stock. The price of the stock didn't go up because of good performance by the company, it went up because of hype. That still happens today. It's an inherent disadvantage for the average investor. I don’t think its unfortunate that Jim Cramer took the brunt of the John Stewart’s complaints. Jim Cramer has admitted to manipulating markets when he was a hedge fund manager. These institutional investors will buy huge blocks of stock which sends up the price, then this creates a real buzz around that stock. More and more people buy into it because of the buzz and the “artificial” price inflation, and at that time the institutional investor will pull out and sell at a high. He’s gained money for his investors, but thousands of other investors have lost money. In other words, the average Joe who is watching CNBC has lost money. This is how the stock market has worked for decades.

Houston PBS recently ran a show that was about the market crash of 1929. This show sounded as relevent today as it was in 1929. Back then a few big money investors would manipulate the price of a stock by buying huge chunks of stock and then they could pull out at any time because it’s gone up only because of their purchase of that stock. The price of the stock didn’t go up because of good performance by the company, it went up because of hype. That still happens today. It’s an inherent disadvantage for the average investor.

]]>