Another Fun Day in the Mkt... - Page 10

Eric5273 · #91 03-05-2009, 05:44 PM

Soon enough all of you who are worried about "wealth redistribution" won't have to worry anymore, because you won't have any wealth.

Sponsored Links

jmweb · #92 03-05-2009, 08:36 PM

I've been investing more and more in the stock market. Just bought 5 digits worth of RRSP's (which will also save my ass on taxes).

Eric5273 · #93 03-05-2009, 08:40 PM

I wish you the best on your investments, but if I had to guess, I would say the worst has yet to come.

motordavid · #94 03-05-2009, 10:37 PM

Well, the good news is one can skip that soda at lunch and buy a share of Citi or, 2 shares of AIG.
Wonder where all that TARP dough that they have received thus far, "goes", when they do a BK...nah,
they are "systemically important to the system".

Speaking of "systems", how do the Rating Agencies Former Geniuses sleep at night?

Hope none of us retired or, nearly so, want to try and undo that irrevocable trust set up for kids or grandkids,
just so one can make that next G5 maintenance payment...

The Mkt smells like Spring '97, but it's really early spring 2009, and no one and, no biz, is really very comfortable, imo.

Back to chasing it at a friend's 3 day Mem-Guest Tournament where almost all of us 100+ ol'Geezers have decided not
to bring "it" up, while we are enjoying the festivities; getting older is good for losing one's train of thought and,
compartmentalizing this odious situ.

See you at 6,000, for a next momentary plateau...
GL, Ol'UncleElBroko

jmweb · #95 03-05-2009, 11:21 PM

Quote:

Originally Posted by Eric5273

I wish you the best on your investments, but if I had to guess, I would say the worst has yet to come.

I can't say I am too worried. I'm not planning on retiring in the next 20 or 30 years so...I got time

Business is booming (for the company I own) and it's an extremely busy period when everyone else is slowing down so I'm not too worried.

Eric5273 · #96 03-06-2009, 12:26 AM

Quote:

Originally Posted by motordavid

Wonder where all that TARP dough that they have received thus far, "goes", when they do a BK...nah,
they are "systemically important to the system".

The answer to your question can be found in this article....

http://www.nytimes.com/2009/02/18/op...harfstein.html

MANY Americans are angry at banks for taking bailout money while still cutting back on lending. But the government is also to blame. For reasons that remain unclear, the Troubled Asset Relief Program has channeled aid to bank holding companies rather than banks. The Obama administration’s new Financial Stability Plan will have more influence on bank lending if it actually directs its support to banks.

To see why, it’s important to understand the distinction between banks and bank holding companies. Banks take deposits and make loans to consumers and corporations. Bank holding companies own or control these banks. The big holding companies also own other businesses, including ones that execute trades both on their clients’ behalf and for themselves.

It would seem obvious that helping banks, not holding companies, would be the most direct way to stimulate bank lending. But when TARP purchased preferred stock and warrants, it bought them from holding companies, not their bank subsidiaries.

While TARP has been generous with bank holding companies, these companies have not been so generous with their banks. Four large holding companies — JP Morgan, Citigroup, Bank of America and Wells Fargo — initially received a total of $90 billion in TARP money in the fall, but by the end of 2008 they had contributed less than $15 billion in equity capital to their subsidiary banks.

The holding companies seem to have invested most of their TARP money in their other businesses or else retained the option to do so by keeping it in deposit accounts, even as the capital of their banks decreased. At the same time the banks, which provide the majority of loans to large corporate borrowers, drastically reduced lending to new borrowers.

Summary: the money never went to the banks, but instead went to the owners of the banks. And instead of giving the money to the banks that they own, they have put the money under their mattresses.

Eric5273 · #97 03-06-2009, 12:08 PM

Now, because of all the failing banks in the past few months, the FDIC is broke, so another $500 billion bailout....

Senate Moves to Loan FDIC $500 Billion - Presidential Politics | Political News - FOXNews.com

AzX5 · #98 03-06-2009, 04:04 PM

Quote:

Originally Posted by AzX5

What's another 1 or 2 %? If you think it won't go much lower than 7000 then now is the time to load up.

I think it will get much worse though, more like 10% from here (< 6500)

I wasn't counting on 6500 quite this soon, and I don't see the DOW turning bullish anytime soon.

Last Price Today’s Change
6,490.90 -103.54 (-1.57%)
Dow Jones Global Indexes Real Time Quote
Last Trade as of 3:02 PM ET 3/6/09

LeMansX5 · #99 03-06-2009, 04:13 PM

Prepare yourself for 6000

lakai · #**100** 03-07-2009, 08:07 AM

get ready for the S&P to hit 640's. I've been short in the S&P futures since 823.

Sponsored Links