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About This Page: This is a discussion on Politics within the LetsGoKings.com forums, at Los Angeles Kings Hockey Fan Forum. http://www.nytimes.com/2008/09/15/bu...hp&oref=slogin
Wow. Strange days for Wall St. Anyone care to speculate on effects of this?
The people at the top will ride out the storm while the poor folk take it in the pooper.
And the cat's in the craddle and the silver spoon... little boy blue and the man in the moon....
Bingo, Dr. There was an interesting article by Tom Petruno in the times a few days ago that basically asked why we don't let a few of these companies fail. Basically calling the bluff of the people that say a firm is "too big to fail" and if it did it would wreak too much havoc on the financial markets. There has to be a breaking point and it sounds like the Feds are saying "no mas." No more bailouts. B of A has really made the most of this turbulent market and expanded market share. They bought Countrywide for pennies on the dollar, and it doesn't matter if some of those mortgages they buy go bad. There are winners in every market. But in the end, you're right Naysay, the little guy that has his pension/ 401k will get screwed.
__________________ Sole member of the Mark Visheau fan club.
B of A is scary big now. Guess what, WHEN (not if) they tank people are going to come crying to big scary government to help them and we all get ****ed. Say goodbye to freedom fries.
__________________ The Kings 2008-2009 season: A LA CHINGADA!!!
It's a good time to dollar cost average into UYG if you are willing to make a long-term investment of 5 years or more.
I wouldn't invest any money in an individual financial stock right now. You don't know which ones are hiding stuff and which ones aren't.
The bigger crisis coming, which neither party addresses, is the ultimate failure of Medicare followed closely by Social Security. Reform is needed and none of our political leaders have the courage to even discuss it.
__________________ Hockey's original bad boy. The "Cowboy" Howie Young
The bigger crisis coming, which neither party addresses, is the ultimate failure of Medicare followed closely by Social Security. Reform is needed and none of our political leaders have the courage to even discuss it.
They're discussing it, it's the "action" that is the real problem. And it's sad to say, but right now, with the general fund running so deep in the red, the government can't really afford to fix it right now, because they are using its surplus to offset their losses.
Love him or hate him - but Bill Maher said it best Friday night - our government right now deals with problems in one of two ways - panic or paralysis. He mentioned Social Security as an example of the paralysis.
As for the discussions, you can google "Obama on Social Security" and "McCain on Social Security" to see the platforms that each guy is pushing for. Obama is for the doughnut theory, in which the first $97,000 of income pays, then a range that doesn't pay, and then it kicks back in and people pay on the remaining income.
McCain's plan seems to be all over the board. Privitization, no raise on taxes, unless of course it's necessary (whatever that means), a lockdown of the fund, and a devotion of 62% of the Budget surplus to shore up the program. (I don't think there's an economic forecast that shows a surplus without the Bush tax cuts expiring, which aren't going to happen under either guy's watch.)
Quite honestly, I'm not sure with the political landscape as it is right now, that there's potential for a solution right now. That's a sad thing to say.
Executive Order 12631 -- Working Group on Financial Markets
Section 1. Establishment. (a) There is hereby established a Working Group on Financial Markets (Working Group). The Working Group shall be composed of:
(1) the Secretary of the Treasury, or his designee;
(2) the Chairman of the Board of Governors of the Federal Reserve System, or his designee;
(3) the Chairman of the Securities and Exchange Commission, or his designee; and
(4) the Chairman of the Commodity Futures Trading Commission, or her designee.
(b) The Secretary of the Treasury, or his designee, shall be the Chairman of the Working Group.
Sec. 2. Purposes and Functions. (a) Recognizing the goals of enhancing the integrity, efficiency, orderliness, and competitiveness of our Nation's financial markets and maintaining investor confidence, the Working Group shall identify and consider:
(1) the major issues raised by the numerous studies on the events in the financial markets surrounding October 19, 1987, and any of those recommendations that have the potential to achieve the goals noted above; and
(2) the actions, including governmental actions under existing laws and regulations (such as policy coordination and contingency planning), that are appropriate to carry out these recommendations.
(b) The Working Group shall consult, as appropriate, with representatives of the various exchanges, clearinghouses, self-regulatory bodies, and with major market participants to determine private sector solutions wherever possible.
(c) The Working Group shall report to the President initially within 60 days (and periodically thereafter) on its progress and, if appropriate, its views on any recommended legislative changes.
you have to be more worried about shorts than puts. you only have $X amount of exposure on the put side vs unlimited exposure on a short. but i don't see a lot of stocks going crazy up right now with this economy staring us in the face.
Last edited by nosoupforyou; September 15th, 2008 at 03:03 PM.
It may well effect us here for the following reason:
1) the financial markets are under duress, which means less ability to pool money and sell bonds and like instruments
2) the State of California keeps trying to fund its deficit with debt, which requires access to the captical markets (as well as putting off future problems like not funding retirement accounts)
3) the county of Los Angeles as well as many other government entities (including Wisella Alaska and the state of Alaska) are doing the same thing
If the capital markets go to hell their may not be money to fund things. If the banks fail, those who save may be hurt. The system works on trust and accountability, something this administration has consistently undermined. If it goes really bad, people will not want dollars and we'll be a f'd up place like most of africa or a south america banana republic.
It may well effect us here for the following reason:
1) the financial markets are under duress, which means less ability to pool money and sell bonds and like instruments
2) the State of California keeps trying to fund its deficit with debt, which requires access to the captical markets (as well as putting off future problems like not funding retirement accounts)
3) the county of Los Angeles as well as many other government entities (including Wisella Alaska and the state of Alaska) are doing the same thing
If the capital markets go to hell their may not be money to fund things. If the banks fail, those who save may be hurt. The system works on trust and accountability, something this administration has consistently undermined. If it goes really bad, people will not want dollars and we'll be a f'd up place like most of africa or a south america banana republic.
This has nothing to do with the Admin, aside from them turning a blind eye, which is expected. This was pure, unadultrated greed on the part of the execs of the Financial Services industry.
If you study the industry, this is how it always has been. But especially as of late, because of Golden Parachutes, nobody is looking long term. They raise their profits with something that screws the client but will sell very well short term, and people buy it because it's what's being pushed by the experts they seek to correct their financial situation. Then the execs get huge paychecks that set them for life, and can put on their resume how much they helped the company for that short period of time.
This has been happening in a specific type of insurance in particular since the 1800s (I really wish I could get more into it, but I'm not allowed to because of licenses I hold). Once people get to know how bad this new product is, it goes down (some execeptions here even), or because it was so bad, in the case of Interest Only, ARM, Neg-Aim loans, it collapses in on itself.
I know I've said this before, but the most aggivating thing is that this could all be predicted. I told people about this 4-5 years ago. But, even knowing what I know, I didn't see that it was going to be this bad. I suppose I was just optimistic and figured companies wouldn't put so much weight into that which would obviously collapse.
BofA buys Merrill-Lynch; Lehman Bros. in freefall 
Dr. Naysay
