Posted on 01/31/2010 3:34:24 PM PST by Red in Blue PA
WASHINGTON (AP) -- The government's response to the financial meltdown has made it more likely the United States will face a deeper crisis in the future, an independent watchdog at the Treasury Department warned.
The problems that led to the last crisis have not yet been addressed, and in some cases have grown worse, says Neil Barofsky, the special inspector general for the trouble asset relief program, or TARP. The quarterly report to Congress was released Sunday.
"Even if TARP saved our financial system from driving off a cliff back in 2008, absent meaningful reform, we are still driving on the same winding mountain road, but this time in a faster car," Barofsky wrote.
(Excerpt) Read more at finance.yahoo.com ...
This is the 2nd thread on this; that’s ok.
Also, it was noted at predicted 25-50% drop in the stock market within the next month, and that it would come very fast.
I’d like to hear any opinions out there...any investors? That concerns me and likely, some better investments would be Family Dollar, P&G, Gold (IAU, GLD), gold mining HL, possibly silver (SLV)...any thoughts?
Yeah, because the diptwads who caused the problem are still running the system. Duh.
ping
Beans, blankets, bullets, & Bibles....
The free market did not cause this crisis, the government did.
The free market did not take us off the gold standard, the government did.
The free market did not dump trillions of dollars of cheap money into the system, the government did.
The free market did not create multiple trillion-dollar entitlement programs, the government did.
The free market did not create Fannie Mae, Freddie Mac, Sallie Mae and Ginnie Mae, the government did.
The free market did not write a tax code that favors one product (real estate) over others, the government did.
The free market did not destroy our public school system and graduate (or fail to graduate) generations of civically and financially illiterate citizens, the government did.
The free market did not pass laws that force banks to lend to those who do not qualify for a loan, the government did.
This crisis is the result of a giant social engineering experiment and vote-buying scheme gone tragically wrong.
The free market does not try to engineer society or buy votes, the government does.
The government caused this crisis, the free market did not.
The government cannot fix the crisis, the free market can.
Plenty and they are still getting more from us!
http://market-ticker.denninger.net/archives/1914-AIG-The-Idiocy-That-Will-Not-Die.html
Just got another $2.4 Billion
http://www.bloomberg.com/apps/news?pid=20601087&sid=aFPIqJcLaiEE&pos=5
The Obama doctrine states: If it doesn't work, print more money until it does work.
Bailouts removed the moral hazard.
(Besides the payoffs to insiders, which further erodes the “full faith & credit” of the monetary system)
Thanks Red in Blue PA.
I would say we have the superhero teams of “Captain Oblivious and the Master of the Obvious” running this country right now.....
Obama is Captain Oblivious (Oblivious tot he outcry over his decisions)
Joe Biden is the Master of the Obvious (Hair plugs)
“The government cannot fix the crisis, the free market can.”
Chant away, but the “free market” created $100 trillion plus in exotic derivatives, something the government has not nearly been able to do.
The “free market” owns the government. The “free market” is given a license to invent money, then buys politicians to protect them.
The Bailouts were like giving the town drunk money because he promised to buy food and clothing with said money, but them surprised the town drunk bough hooch and ended up in the alley drunker than a skunk...
See #10.
LOL
Buy put options for market-correlated ETFs. I bought and own some February puts for symbol DIA, which correlates with the Dow. QQQQ correlates with the nasdaq. Not sure about the S and P 500.
Well my choices are limited, because I am retired, and have to be careful.
First do not invest money you can not afford to lose, or will need short term. Make sure you have a minimum of 6 months to a year of expenses socked away in an FDIC insured bank account or CD, before you invest. I prefer local community banks with stringent lending practices for savings and CDs.
If you are carrying a lot of debt. Consider paying extra to bring down your exposure. If you are paying 13% interest, then you are guranteed a good rate of return, and reducing you overall risk at the same time. This is probably a good choice for most Americans right now.
Also I like to keep my assets-checking, savings, investments in institutions other than those who I am indebted to. That way they can’t just up and debit my account if there is a dispute regarding the loan.
Prior to the crash of Sept 2008, I had already liquidated half of my stock funds and parked them in the Treasury fund. I am keeping enough there to pay off my mortgage, but have not decided what I will do this year, yet. Too much regulatory uncertainty.
I had also taken some money from large company growth funds and put it into small and large cap value funds. I liquidated half of my emerging markets and maintained about 15% International in the overall portfolio.
I did put about $2500 in individual bank stocks and Ford for a self directed IRA just for kicks and grins during the market turmoil in 2008. Wish I could have bought more, but I am too old to do that stuff now.
If you really want to make money you need to be willing to buy when there is blood in the streets, but do not risk funds you can not afford to lose. If you are young and have to start over it is not so bad, but when you get to may age, it is better to be conservative. Do not make investments that will keep you awake at night. Sleep is too important to your health.
This worked out well till now. My overall portfolio remained positive even during the worst of the turmoil. It is currently positive, and up quite a bit, but I have not rebalanced it yet.
The IRA with the treasury fund has nothing safer to offer, so I am stuck with that. The thought of holding Treasuries is not great, but no other country’s currency is better, even if it was available in the product.
I think silver has lagged behind gold in prices, so that could be an option, if you think we are in a sustainable recovery.
I think the dollar may headed for a devaluation, and that rampant inflation is waiting in the wings, if we are lucky enough to get the US economy going again. This means that stocks and commodities are going to be needed to hedge against those possiblities.
Looking at the overall market, it is at fair value, so I would not be investing in Index funds, but would take the oportunity to buy stock in some companies that are currently undervalued.
If you expect another large drop in the market, you could always take some of the profit in stocks off the table and park it somewhere till we know what the government critters are going to do. I have already stayed with this bull longer than I should,just because the alternatives are not attractive.
This past year, people have been buying a lot of gold, and the price is pretty high. It would have been a better investment a year or so ago. I am probably going to take some profit, and park it. If we have a repeat of sept. 2008, I will be buying some stocks then, based on careful analysis of the company’s situation.
Again, if you have high debt levels at high rates, paying down the highest rates might be the best option short term.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.