Posted on 09/15/2008 1:16:57 PM PDT by illiac
Bad day for Wall Street
(Excerpt) Read more at finance.google.com ...
Most of the time .... but a lot of crooks are greedy and they flourish in unregulated environments. I wonder how greed worked into the valuation methods - esp. mark-to-model.
Good differential analysis.
Nothing compared to 1987.
It's just the market saying "Knock it off!" to the government and it's silly Utopian like fixes.
What is it a 4% drop? Whoopdeedoo!
Buy now, reap later.
Without a correction, then yes, worry.
This silly political interference in the market of late is preventing the correction which is needed to weed out the losers and promote the financial winners, and in the long run will make the correction hurt much more than necessary.
And, in the end, the Feds will pay for all this with printed money. Meaning inflation.
Yep, and I stand by ‘em all.
Forewarned is forearmed.
>>Based on just the idiodic crap you’ve posted here, I’d say you are as big of a doomer & gloomer as one could find and I’m sure that most here would completely agree with me.<<
Thanks. Isaiah was a “doom and gloomer”.
It has nothing to do wit it. The stupid loans were the result of bank managers getting big eyes during the real estate bubble and thinking there was free money to be made. They were extending loans to anybody that could sign the dotted line, on pieces of property that weren’t worth the loan amount. And then those people couldn’t pay, and then the banks couldn’t sell the property for anywhere near the loan amount, and now they’re going under.
That’s not free trade. That’s nothing even resembling free trade. That’s 100% Home Grown stupidity.
What the hell are you talking about? Don't spread rumors or fears (ever hear of a bank run?)
Wachovia is a BANK, and has several entities that are very profitable (Wachovia Securities, LLC). Bear Stearns, MerrillLynch, Lehman Brothers, WAMU are all bond firms/investment firms, not true banks! These four (4) investment firms (NOT BANKS) made billions of opaque loans and all four (4) were BIG HOLDERS of BAD DEBT!
Wachovia has $50 Billion in assets, 87% of which are secured by long term, insured, AAA rated debt.
Wachovia has $6 billion in earnings coming in.
Wachovia has $27 billion in cash (money market/CD/ben franklins)!!!! Which equates to more than $12.00 a share. Currently, their preferred (WB.S) is paying 21% interest!!!! WOW!. They cut their dividend last month for their common stock.
BAC (Bank of America) just bought Merrill Lynch (and all of their accompanying bad debt. They had a 6% market cap in TIER one (1) capital.
WACHOVIA HAS 8% TIER ONE CAPITAL! HUGE NUMBERS!
Personally, I wish the admin mods would yank speculative posts and threads.
As of right now, I don't think Wachovia is in trouble, with that being said, last month, I would have never thought Merrill would be bought out by BAC.
My recommendations? Bullets and toilet paper:)
>>I live in a condo, but I have thyme growing in a pot.<<
;)
I have a bunch of oregano and chives in a pot. What we cook will at least taste good!
“free trade” rules changed everything. It globalized our domestic economy to the point where it is collapsing. The real estate bubble was created by allowing foreign investment in real estate here. It drove up the prices because the demand became larger than the domestic market would support. Thats where the bankers started seeing billions and trillions of dollars instead of what the domestic economy alone could support. The government illegally complying with ‘free trader’ corporate partners did it.
>>As of right now, I don’t think Wachovia is in trouble, with that being said, last month, I would have never thought Merrill would be bought out by BAC.<<
Hey that’s groovy!
A lot of experts disagree with you. and have for a while.
Yeah right...
What you mean is the Fed's will print more money and we the people will pay for it via a government financed country wide rectal?
I think he meant to say Trillions of dollars worth of loans, not numerical....in which he would be correct. The CDO and credit tax swap market is around $50 TRILLION (YES TRILLION)
That always happens when the economy hits a bump- people start to panic and demand that the government "Do Something!"
Today sucked. I can't even bring myself to look at my stock portfolio. But protectionism and government regulation are not the answer, and never have been.
I'm not so sure. The money was created through fiat, and loaned out into circulation. What is coming back is a debt that can't be repaid, because the money has effectively dissapeared. So if they just forgive the debt, the fiat money disappears, and we deflate our way out of the problem.
We now have an oversupply of banks that the new deflated money supply doesn't need.
“Free trade” rules didn’t change a damn thing in the real estate market. Property flipping becoming the cool new hobby did most of it. A large group of people, including lenders, thought every piece of property was going to start doubling in value every two years. Turns out almost none of them doubled in value and when they eventually ran out of do-dos to sell to the whole thing unwound.
Foreign investment has been happening in our real estate for decades. This was a much bigger, dumber bubble than any of those.
I know one issue guys hate hearing this. But you’re just plain 100% wrong. You’ve got a hammer and thus see the world as filled with nails, but this here is a screw. It has absolutely nothing whatsoever to do with free trade, evil foreigners, or executive branch corruption. This was entirely driven by stupidity, vast quantities of big eyed stupidity.
If we had been ‘protecting’ our economy, it wouldn’t be melting down right now.
It’s just a flesh wound
http://www.youtube.com/watch?v=zKhEw7nD9C4
1987 was a crash in an otherwase upwards trend. This one is yet another crash in the middle of a ten year FLAT trend.
That one also took two years to recover.
It will be interesting in seeing where this one leaves us a week from now. It did not happen in a news vacuum.
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