Posted on 09/29/2008 5:42:09 PM PDT by 2ndDivisionVet
Well, one of them has to be F***.
Got the name of a good boat?
“The world did not end today. Yes, the market took a pretty nasty dive, but it will recover more quickly if we dont allow Congress to once again put its nose in and help. The market will correct itself. Oil is down. Dollar is up. We just need to ride this out and let the teetering institutions fail and capitalism will prevail. We must continue to say no to this Socialistic bail out in whatever form comes next.”
I agree with you totally! Now if McCAin will only take the opportunity to lead and say the best thing to do is cut Capital Gains Tax and and let the market correct itself. He would win for sure in November if he did!
Clayton, meet with your neighbors. Make plans to fortify your town.
The absolutely worst thing one could do is to sell stock in solid companies. Stock prices go up and down, but meanwhile they pay dividends, and while you are drawing those you wait til they go back up to sell. They will go up again.
The CDs would be FDIC insured, not sure about the AIG stuff.
Great flick!
Mebbe I’ll watch it tonight...
Should I feel sorry for someone who is realizing the risk inherit in the stock market?
Bonds have been taking a beating because of the sub-prime market. Your feelings are your own. I will not impose my beliefs on your feelings. (smile)
What did I miss in 10th grade econ?
Wow, a product of our education system that understands bonds and the basics of our education system! (I am NOT being sarcastic.)
You are correct. Most small investors buy Bond Mutual Funds because they can diversify and because nobody really wants their money tied up in a 30 year bond. Mutual funds give liquidity. Nonetheless, mutual fund or not, the base price a person is willing to pay for a bond depends on today's interest rate (among other things). As interest rates drop, the base price of the bond increases and vice-versa in a normal market.
When small investors put money in a bond mutual fund, the mutual fund manager selects the investment tools. Many mortgages have been packaged as bonds and resold to bond mutual funds (hedge funds too). The value of the sub-prime mortgages are difficult to place a value on, and the price someone is willing to pay for the mutual fund will therefore drop -- more if the fund is heavily invested in mortgages.
I hope that helps answer your excellent question.
We need to make more noise. We're slowly winning on Global Warming "Climate Change"; here things are compressed, but I still sense an increasing number of people are perceiving that the real "urgency" is "you need to act immediately, because the longer you wait the more likely you'll realize it's a scam."
The irony here is that I suspect that bond funds are more dangerous in this market than many types of equities. If many of the purchasers of some type of bond also bought credit default swaps to "insure" it, any shakiness on the part of the "insurer" will tend to undermine confidence in the bond as well. Some companies' equities will become totally worthless as a result of their having bought toxic paper, but many other companies' equities might escape relatively unscathed.
If I may, I would add to your list to remember that those who held on to their worthless stocks in the 30s eventually became quite wealthy. Some families, years later, would find some old stock certificates stuck away in a drawer, take it to wherever one takes old stocks, and found out that the certificates were worth a fortune. Just think, maybe we can make our grandchildren wealthy by holding out.
My grandparents have been in a three way panic for the past several days, and I made the suggestion that they should consider gold. Although I see in this thread further up that someone else suggested that already.
But I’m just the adorable grandson, what do I know?
Good to hear from a strong American woman.
I’m waiting till the DJIA gets to 42, then it’s buy, buy, buy!
There you go!
Buy @42!
(I have a buy in @ .15.....) Yeah, I’m a low-life bottom feeder.......
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