User:Feetbake

Nate LeBrun 9-3-10 “Taking Stock” When Business Week printed an issue with “The Death of Equities” as its top headline, it marked the beginning of an age of doubt. It seemed that the world’s system of international exchange was crashing down due to some drastic changes in the value of money. People started to lose faith in their own bank accounts, and, in turn, have become fearful of investing in stocks or, even, at all. However, investors are becoming more and ore interested in government and corporate bonds even though they won’t get much in return. Analysts are worried about the rising unemployment, failing mortgages, government deficits and a weakening economy overall. Albert Edwards predicts a stock market crash in the near future, but others disagree. They say that investors just have to remember that stocks are based on a business's earnings and to buy a stock if they can find it “at a discount.” The earnings rate for stocks is almost 6% more than that of bonds, but investors think that investors in stocks would get less in return because earnings would grow over time. Overall, consumers and investors seem to be overly cautious when they invest in anything nowadays. I think that this article falls under the question of “What should our government do?” Should the government step in and say something like buy more stocks or should they let the situation play itself out? This also falls under the theories of pluralism and elite and class because it’s the wealthy that are the key investor and contributors to large companies, witch are influencing the government to do what they want, so their businesses will grow stronger and more powerful.