The economy apparently has now entered the great abyss!
Posted by Blueeyes at 9/17/2008 12:48 AM 
Categories: news, Finance, Money, Investing, Business, George Bush, government gone bad, government gone wrong, SCARY
Categories: news, Finance, Money, Investing, Business, George Bush, government gone bad, government gone wrong, SCARY
Apparently with the dow dropping a cataclysmic 504 points on monday after news of Lehman filing for bankruptcy, Bank of America's buyout of Merrill Lynch, and AIG possibly filing bankruptcy it appeared that the financial apocalypse may be upon us. If AIG, which dwarfs all other banks that went under combined, was allowed to go under the whole financial system would most likely collapse.
To make matters worse, the FDIC in trying to alleve Americans fears over their savings accounts, they elected to have this lady (Ican't remeber her name) answer some questions on CNN. Apparently she didn't answer most of the questions and instead just stated that people can go to the FDIC website. Maybe they will have the answers she didn't have there?
What really gets my goat is the levels of executive compensation through this mess. The CEO's of Fanny Mae and Freddy Mac received 100's of millions in compensation for screwing up the entire mortgage industry. The CEO of Merrill is still getting his $47 or so million dollar pay for this year. I wonder what the CEO of Lehman took home the last few years while they were taking on all the toxic loans and bad investments that ended up becoming Lehman's downfall?
Well, the best advice I heard today from several stock market analysts today - stay on the sidelines for a while and that the bear market now looks like it will easily extend until 2010! That's 2 more years of a worsening economy. So, if these really big wall street firms and banks have fallen, what's next in the near future. First it was Bear Stearns, now Lehman and Merrill Lynch. AIG is not out of the woods with the $85 to $90 billion dollar aide from the fed. They could still lose it in the next few months.
Liquidity and the economy are in dire straights. 5 star investment stocks of companies that are doing well are getting pummeled like ther rest. Just look at RIMM, SDTH, XTO, BAC, TRA - just to name a few of the top rated investment stocks at the Motley Fool Caps. Basically everything is on a massive fire sale right now. Many stocks are at 50% off their recent highs. Many financials are at even greater savings like 80% and more off (they are also very, very volatile and extremely risky right now).
So what is the safest place for ones money right now? Cash! Put your money in a money market account insured by the FDIC. The stock market will cause you to lose money right now. It's not worth investing in a bad bear market - even the pros are getting pummeled! Hold off and wait until things cool down and the economy reverses itself.
This is not to be taken as financial advice. For proper financial advice please seek the advice of a licensed and competent financial advisor.
To make matters worse, the FDIC in trying to alleve Americans fears over their savings accounts, they elected to have this lady (Ican't remeber her name) answer some questions on CNN. Apparently she didn't answer most of the questions and instead just stated that people can go to the FDIC website. Maybe they will have the answers she didn't have there?
What really gets my goat is the levels of executive compensation through this mess. The CEO's of Fanny Mae and Freddy Mac received 100's of millions in compensation for screwing up the entire mortgage industry. The CEO of Merrill is still getting his $47 or so million dollar pay for this year. I wonder what the CEO of Lehman took home the last few years while they were taking on all the toxic loans and bad investments that ended up becoming Lehman's downfall?
Well, the best advice I heard today from several stock market analysts today - stay on the sidelines for a while and that the bear market now looks like it will easily extend until 2010! That's 2 more years of a worsening economy. So, if these really big wall street firms and banks have fallen, what's next in the near future. First it was Bear Stearns, now Lehman and Merrill Lynch. AIG is not out of the woods with the $85 to $90 billion dollar aide from the fed. They could still lose it in the next few months.
Liquidity and the economy are in dire straights. 5 star investment stocks of companies that are doing well are getting pummeled like ther rest. Just look at RIMM, SDTH, XTO, BAC, TRA - just to name a few of the top rated investment stocks at the Motley Fool Caps. Basically everything is on a massive fire sale right now. Many stocks are at 50% off their recent highs. Many financials are at even greater savings like 80% and more off (they are also very, very volatile and extremely risky right now).
So what is the safest place for ones money right now? Cash! Put your money in a money market account insured by the FDIC. The stock market will cause you to lose money right now. It's not worth investing in a bad bear market - even the pros are getting pummeled! Hold off and wait until things cool down and the economy reverses itself.
This is not to be taken as financial advice. For proper financial advice please seek the advice of a licensed and competent financial advisor.
Well, it ain't done yet. I have been making a killing doing naked shorts all the way down on Lehman, AIG, Bear Stearns, and pretty much most of the financial stocks. I figure that I have made more money this year through shorting the financials than the average person makes in several lifetimes. I hear about all the groaning and how we have entered a terrible financial time, but if you morons could have figured out where the economy was headed you too could have made literally millions and millions. This was better than winning the powerball lottery for me and with little risk as the economy was set to tank any way. I let the hedgefunds get it all started and just followed along for the sweet ride and it isn't over yet. More banks will fold in the following few months. Tis the season for shorting!
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I think the economy sucks moose and that since it is so bad everywhere that congress and the president should all take a pay cut. Just take a look at their amazing retirement package. They are all millionaires and don't need the extra funds.
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