Friday, November 7, 2008

Wealthy investors will gain from the 'crisis'

Here we go again. Every time a financial "crisis" is created and small investors panic, wealthy investors reap a fortune by buying the shares that are dumped onto the market by everyone who is not rich and is fearful of losing too much money by holding on.The wealthy can afford to take the chance that the market will be rebound and the shares they bought at bargain basement prices eventually will be worth much more.

If you are thinking to yourself that it is not a chance that the wealthy take, but rather a situation which they generated for the purpose of being able to buy cheap stock, know that your thinking is shared by many individuals on the basis of past history. I reached the same conclusion as to past financial downturns, but not as to this one. In any event, it makes no difference whether or not the present "crisis" was deliberately generated. The end result will be the same: the rich will get richer, and the less than rich will become still less rich. That is the dance.

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