Quick question!

[ineedanswers]

Hey guys, im new to stocks and everything I just have quick question that is burning through my head right now.


I feel like what created the housing bubble from the early 2000s to 2008 started from reagan. Reagan and Greenspan deregulated the economy making it easier for the finance industry to do what they please, which led to large economic growth but that had to eventually burst, which is what happened in the mid 1980s, and mid 2000's no?
So trump and his financial advisors are looking to deregulate the finance industry as well as lowering the interest rate. This will in turn to lead to economic growth, but eventually a bubble. So if this hypothetical theory is correct, wouldnt it be smart to invest rn to ride the "trump train"? Then the entire time while the economy is going up and up, a smart investor would look into why the economy is going up, recognize the bubble, and then short it when you realize the bubble is going to burst? Isnt this how ppl made money on the 2008 financial crisis?

or am i just rambling nonsense

But at the same time, I feel like the Trump administration is focusing largely on the economy and would do as much as they can for economic growth therefore justifying lowering interest rates and deregulating the economy like repealing the glass steagal act? can they even do that?

if history is repeating itself should we not be more heavily invested in what trump is going to do with the economy

 

[william the wie]

Removing regulatory drag under Reagan mostly caused the collapse of the old S&L industry. The 2008 meltdown was due primarily to Clinton's repeal of Glass Steagall act in 1999 and his not requiring CDSs to be sold in an organized market. Unless Trump addresses both of those issues then a housing bubble and bust is likely but with a 9-10 year lag.Trump is in favor of reinstating Glass-Steagal but not requiring sale and purchase of CDSs in an open out cry market will lead to instability a long way down the road.

 

[Toddsterpatriot]

Removing regulatory drag under Reagan mostly caused the collapse of the old S&L industry. The 2008 meltdown was due primarily to Clinton's repeal of Glass Steagall act in 1999 and his not requiring CDSs to be sold in an organized market. Unless Trump addresses both of those issues then a housing bubble and bust is likely but with a 9-10 year lag.Trump is in favor of reinstating Glass-Steagal but not requiring sale and purchase of CDSs in an open out cry market will lead to instability a long way down the road.

The 2008 meltdown was due primarily to Clinton's repeal of Glass Steagall act in 1999

Baloney.

 

[Fenton Lum]

The repeal of the Glass Steagall act in 1999 during the Clinton administration certainly was a major contributing factor, and no one seems really intent on putting something like it back in place. The current bubble cannot last, we never learn. The system will need endless war to attempt to artificially keep this thing afloat.

 

[Iceweasel]

What was the quick question again?

 

[william the wie]

Glass-Steagall alone won't do squat. currently we are not dealing with a bubble because of food and energy deflation.

 

[ineedanswers]

wow so many replies! lol this is my first time using a message board. Thank you everyone for your insight.

 

[Toddsterpatriot]

The repeal of the Glass Steagall act in 1999 during the Clinton administration certainly was a major contributing factor, and no one seems really intent on putting something like it back in place. The current bubble cannot last, we never learn. The system will need endless war to attempt to artificially keep this thing afloat.

The repeal of the Glass Steagall act in 1999 during the Clinton administration certainly was a major contributing factor,

Why do you feel that?