What would have happened if we had just...

What would have happened if back in 2008 before everyone's 401k and investments went to half value, if all us common folk had converted our 401k's out of stocks and all into cash (keeping it all in the 401k though)? Because what happened when we didn't, was the rich were able to make money off of the destabilization and the changes in the market. So seeing that there was never really a danger of the economy actually crashing, and that people somewhere DID make money off of all that chaos, would the common man have won that little battle if we had converted all our stocks into cash? Would the middle class be invigorated and strong had we done that?

What would happen now if we converted our 401k's into cash as a collective? Would it hurt the system? I am not advocating this, I am just curious and I think it's a useful theory and looking for education.

What would have happened if the common man had sold all their stock a year before the great depression? ETC. somebody always comes out ahead.

It seems like these would be victories for the common man, and a loss to the elite's power.

Anyone else have theories of other significant places in history where the common man could have united and dealt a heavy blow to TPTB had "we" known things politically or economically in advance?

most people think that crash was a crisis but the reverse was true

wall street makes money regadless of any given situation

it is a fact that when the dow went to 6000 and the bottom dropped out of the housing market

over inflated prices were now at rock bottom prices.

anyone buying stocks or homes had the opportunity to become very very rich.

buy low sell high and sell short.

all the bailouts did was to keep the inflated prices as the status quo.

both were market corrections.

and too many people faliled to see that.

We could have prevented what's an off-shoot of the Knight's Templar to be created in the Bildeburg group during the 50's. Better yet, when they sent their message assassinating Kennedy of what will happen to any politicians that don't do as they're told, we shoould have hunted them down like they were under the templar's flag. A clear message that you'll get a boot in your ass jacking with the US.
Neo96, the markets don't make the money. Someone makes money on the market, it's because someone else loses it. Except the parasites trying to keep investors dumbed up and lazy.
Brokers are like lawyers. They convince you of their necessity by obscuring the simple fundamentals of right and wrong where in actuality, they cannot survive but by the blood and sweat of others.

reply to post by neo96


Yes but no matter what you call it, many people lost half their life savings because of it. Sure over time any investor can make money, but what about those that were at retirement age? Funny that it happened right before all the baby boomers began reaching retirement age. That is some timing. Sure over time it's all a wash, but if things happen at the wrong times (a crash before you need to start cashing out for retirement) then it's not just a correction, that's not the whole story.

1929 is a good example of everyone pulling cash out and looked what happened.

We now have the federal reserve to prevent that and we are off the gold standard so the risk of those same events are happening are low but still if everyone pulled everything out the fed would probably be forced to close banks to prevent runs similar to what FDR did when he was elected with his bank holidays.

reply to post by kro32


Nobody is pulling any money out. It's just converting from stocks to cash and keeping it all within the 401K. It's putting more cash into the bank, and less cash into the stock market.

reply to post by Novise


they all have risk no matter what you put your money in that is the nature of the game

most people just sat back and think its just safe

markets rise and fall thats what they do but that brings up another element of investing

never put all your eggs into one basket its called diversification.

people need and should diversify because investing history itself has shown crap happens.

investing a gamble which its bottom can fall out at any given time.

with no risk theres no reward.

decades of people and government and even wall street stupidity led to that mess but agian it was opportunity for many.

reply to post by Novise


1 might consider buying up all the gold and silver you can get you hands on. Gold was less than $300 an ounce in '02. It's far from peaking if Barry gets his way on anything else. Bird in the hand brother.