A Bad Day On Wall Street? For Who?

[Immanuel]

This post is sort of in response to the thread started by Kathianne about today being a bad day on wall street due to the Bear Stearns Collapse and the subprime issues.

I want to know who this is going to be a bad day for.

Yes, the value of my 401(k) will drop. Yes, the value of my IRA will drop. Yes, the value of my mutual funds will drop. So what?

There are only two types of people that will truly be hurt by the plunging markets, 1) those who panic and sell and 2) those who are forced to sell to cover other debts.

Don't be either one of those kinds of people. The market will rebound. As the saying goes; buy low sell high. If you didn't sell on Thursday... don't sell today. Whatever you do... don't panic. Let the market absorb this bad news from Bear Stearns. When it does things won't look so bleak and the market will recover. I promise.

If you are one of the second kinds of people... well, then I have one piece of advice for you... you should not be in the market in the first place. Wait for the market to rebound and then GET OUT!

Now... as for it being a bad day, I look at it like this today is a great day to buy! If you have some money you were thinking of investing and have a company you wanted to invest in... well, now is the time to think about getting in. Don't wait until the market has rebounded.

I wish I had some extra cash laying around, because now would be the time to buy.

Immie

[truthmatters]

The stock market represents real companies which react to how their value is viewed in the market. Real people will lose real jobs.

Anyone with big money will make money because if you have enough money you can make money in any market. Down markets benifit the very wealthy about as much as an up market. Bear Stearns is being bought at a bargain price by JP Morgan.

[Immanuel]

The stock market represents real companies which react to how their value is viewed in the market. Real people will lose real jobs.

Anyone with big money will make money because if you have enough money you can make money in any market. Down markets benifit the very wealthy about as much as an up market. Bear Stearns is being bought at a bargain price by JP Morgan.

People are not going to loose jobs BECAUSE to market dropped today.

People at Bear Stearns may loose their jobs but not because of today's market. People at Bear Stearns may loose their jobs BECAUSE of poor management decisions not because of how investors view their company.

Immie

[truthmatters]

Oh Immy yes they will. Corporations will do what they can to improve the bottom line. They will trim their payroll. Its one of the ways they can cut costs to improve the next quaters outlook.

[Immanuel]

Oh Immy yes they will. Corporations will do what they can to improve the bottom line. They will trim their payroll. Its one of the ways they can cut costs to improve the next quaters outlook.

If that were the case, then every time a stock price dropped there would be mass layoffs. It doesn't happen that way, TM.

Also, the point of this thread is, that you as the average investor, should not panic and sell all now. It's too late to do that. Ride it out and invest if you can.

Immie

[JohnDoe]

This post is sort of in response to the thread started by Kathianne about today being a bad day on wall street due to the Bear Stearns Collapse and the subprime issues.

I want to know who this is going to be a bad day for.

Yes, the value of my 401(k) will drop. Yes, the value of my IRA will drop. Yes, the value of my mutual funds will drop. So what?

There are only two types of people that will truly be hurt by the plunging markets, 1) those who panic and sell and 2) those who are forced to sell to cover other debts.

Don't be either one of those kinds of people. The market will rebound. As the saying goes; buy low sell high. If you didn't sell on Thursday... don't sell today. Whatever you do... don't panic. Let the market absorb this bad news from Bear Stearns. When it does things won't look so bleak and the market will recover. I promise.

If you are one of the second kinds of people... well, then I have one piece of advice for you... you should not be in the market in the first place. Wait for the market to rebound and then GET OUT!

Now... as for it being a bad day, I look at it like this today is a great day to buy! If you have some money you were thinking of investing and have a company you wanted to invest in... well, now is the time to think about getting in. Don't wait until the market has rebounded.

I wish I had some extra cash laying around, because now would be the time to buy.

Immie

I think you might be missing a very big part of this immie....

the 70 million baby boomers....maybe 10 million extra to retire starting this year...RELY on what is in their 401k NOW and they do not have the two decades that YOU have to make their retirement LOSSES back.... or don't have the time to have their homes be worth more so they can live off of them in their retirement?

we ARE in a world of poopie....for a prolonged period in my opinion....but we will pull out of this....eventually.

jd

[truthmatters]

No not everytime but when they know the economy is screwed and they can not capture new market share to make the differance then they cut the payroll and close failing outlets.

This is a quickly contracting market and the only real option for most industries right now is to close down outlets and trim the employee ranks.

[Immanuel]

No not everytime but when they know the economy is screwed and they can not capture new market share to make the differance then they cut the payroll and close failing outlets.

This is a quickly contracting market and the only real option for most industries right now is to close down outlets and trim the employee ranks.

Again, that has nothing to do with "Wall Street". It has everything to do with management decisions. Companies will be trying to trim expenses where they can, but the term "a bad day on wall street" is referring to investors not to employees.

The worst mistake you can make on a day like today is the get up thinking, "oh my God, the market's going to tank. I better sell first thing this morning". By the time you heard about Bear Stearns it was already too late to sell.

Immie

[truthmatters]

You are right there Immy it would be a bad time to sell. Some people will not be able to retire now due to the market. They are stuck.

[Immanuel]

You are right there Immy it would be a bad time to sell. Some people will not be able to retire now due to the market. They are stuck.

BS... nobody retires today and sells everything they own in the stock market today. You either have enough to retire today or you don't. You have either done a good job planning for your retirement and have enough to retire on (a decision that would have been made months ago anyway) or you don't. If someone was planning on retiring today, the market issues would not effect that decision one way or another.

Now, if today they began their plans to retire in the near future, they MIGHT put it off a little while longer, but again that decision would not be made over one day's market issues.

Immie

[Immanuel]

I think you might be missing a very big part of this immie....

the 70 million baby boomers....maybe 10 million extra to retire starting this year...RELY on what is in their 401k NOW and they do not have the two decades that YOU have to make their retirement LOSSES back.... or don't have the time to have their homes be worth more so they can live off of them in their retirement?

we ARE in a world of poopie....for a prolonged period in my opinion....but we will pull out of this....eventually.

jd

Sorry, missed this or I would have added to my last post.

JD,

The same applies here. You and I are at the end of the Baby Boomer's generation. Our inevitable retirement is only now beginning to hit us. Most of us are thinking, "how the hell am I going to retire in 20 years?". But remember, those at the beginning of the generation made those decisions 20 or more years ago.

Today's market contraction and the coming recession won't change much for them. Either they planned for this and put the biggest part of their investments in conservative vehicles or they didn't. If they did, then it is retirement as planned for them. If they started too late or never started at all, then there was no retirement in the future for them anyway.

Immie

[Kathianne]

This post is sort of in response to the thread started by Kathianne about today being a bad day on wall street due to the Bear Stearns Collapse and the subprime issues.

I want to know who this is going to be a bad day for.

Yes, the value of my 401(k) will drop. Yes, the value of my IRA will drop. Yes, the value of my mutual funds will drop. So what?

There are only two types of people that will truly be hurt by the plunging markets, 1) those who panic and sell and 2) those who are forced to sell to cover other debts.

Don't be either one of those kinds of people. The market will rebound. As the saying goes; buy low sell high. If you didn't sell on Thursday... don't sell today. Whatever you do... don't panic. Let the market absorb this bad news from Bear Stearns. When it does things won't look so bleak and the market will recover. I promise.

If you are one of the second kinds of people... well, then I have one piece of advice for you... you should not be in the market in the first place. Wait for the market to rebound and then GET OUT!

Now... as for it being a bad day, I look at it like this today is a great day to buy! If you have some money you were thinking of investing and have a company you wanted to invest in... well, now is the time to think about getting in. Don't wait until the market has rebounded.

I wish I had some extra cash laying around, because now would be the time to buy.

Immie

That's true, I'l love to buy some JPMC. LOL!

[Kathianne]

Oh Immy yes they will. Corporations will do what they can to improve the bottom line. They will trim their payroll. Its one of the ways they can cut costs to improve the next quaters outlook.

But TM, you should be happy, JPMC has made it clear it only wants to keep the prime side of the evil BS, so those jackals deserve to lose their jobs. Grrrr. Oh maybe not, those poor folks, were just pawns in the corporate behemoth. :rolleyes: Wonder how much those pawns made?

[Immanuel]

That's true, I'l love to buy some JPMC. LOL!


You and me both!

I also thought about selling Bear Stearns short. Then again, by the time I found out about it, it was too darned late!

Hmmm, now that I think about it... who is the next victim of subprime lending going to be?

Immie

[Mr. P]

You and me both!

I also thought about selling Bear Stearns short. Then again, by the time I found out about it, it was too darned late!

Hmmm, now that I think about it... who is the next victim of subprime lending going to be?

Immie

CitiBank?

[Immanuel]

CitiBank?

Good possibility.

Might be a good time to look into selling Citibank short.

Immie

[JohnDoe]

Sorry, missed this or I would have added to my last post.

JD,

The same applies here. You and I are at the end of the Baby Boomer's generation. Our inevitable retirement is only now beginning to hit us. Most of us are thinking, "how the hell am I going to retire in 20 years?". But remember, those at the beginning of the generation made those decisions 20 or more years ago.

Today's market contraction and the coming recession won't change much for them. Either they planned for this and put the biggest part of their investments in conservative vehicles or they didn't. If they did, then it is retirement as planned for them. If they started too late or never started at all, then there was no retirement in the future for them anyway.

Immie

Immie...good points in buying in NOW, IF you have the money to do such or IF you are still working and having money bought in to the market each week via your 401k....I agree!

But here is what I believe you are missing...

TODAY, in one day, our Federal governmnt TOOK $30 BILLION DOLLARS OF OUR TAX MONIES and basically handed it to JPMorgan to buy Bears and Stern between $2 and $3 dollars a share from $75 dollars a share days ago....our fed just bought $30 BILLION in junk, in ONE DAY.....they took our money and blew it ON THIS MESS that is going on....

IT AIN'T the usual recession we are facing and truthfully some are using the "D" word if this thing does NOT work to stable our Banking/ Financial industry....

We... owe nearing $10 TRILLION, most to foreign countries.... one of them being the Asian/ Japanese.....their market took a huge crash based on the weakness of the dollar....

no more people to borrow off of... as this administration has relied on to get us by...means HUGE TAX increases on to us in the near future...So whatever profit you think we will make off the market in the next 20 years we WILL BE PAYING in higher taxes so it will not help us much....imho.

Also the weak dollar means that the Price of Oil will continue to rise for us....Oil has risen 67% for us while 43% for the EU, the difference being our "Dollar" devaluation, DONE PURPOSELY by this administration, to try to reduce our trade deficit by making things "cheap" in the USA through the weakening....NO ONE has ever taken this approach before but for some reason these idiots have taken this route...

I think National Health care was suppose to cost less in a year than the $30 billion BAILOUT that this Administration handed away today....if this $30 billion does not settle the spiral down....then the money will DRY UP and our economy or businesses will not have money to fund their businesses or advance their businesses or to advance even technology.....due to the banking collapse....

And every bank that collapses, GUESS WHO HAS TO PAY the people invested?

WE DO, via our taxes.....and the federal insurance we litterally gave to the banking industry as a perk in the guise of securing "the people's" money up to $100k a person...FDIC and other insurances that the Fed agreed to put up for other banking transactions.... like I said, every bank that goes under, the FED or us, gets hurt badly....we pay for their failures.

I don't like the gloom and doom predictions or speculation that I have made....but to me, WE ARE IN BIG TROUBLE, much bigger than what is being let on.....get ready for a bumpier ride.... I pray I am wrong!

jd

[Immanuel]

Immie...good points in buying in NOW, IF you have the money to do such or IF you are still working and having money bought in to the market each week via your 401k....I agree!

But here is what I believe you are missing...

TODAY, in one day, our Federal governmnt TOOK $30 BILLION DOLLARS OF OUR TAX MONIES and basically handed it to JPMorgan to buy Bears and Stern between $2 and $3 dollars a share from $75 dollars a share days ago....our fed just bought $30 BILLION in junk, in ONE DAY.....they took our money and blew it ON THIS MESS that is going on....

IT AIN'T the usual recession we are facing and truthfully some are using the "D" word if this thing does NOT work to stable our Banking/ Financial industry....

We... owe nearing $10 TRILLION, most to foreign countries.... one of them being the Asian/ Japanese.....their market took a huge crash based on the weakness of the dollar....

no more people to borrow off of... as this administration has relied on to get us by...means HUGE TAX increases on to us in the near future...So whatever profit you think we will make off the market in the next 20 years we WILL BE PAYING in higher taxes so it will not help us much....imho.

Also the weak dollar means that the Price of Oil will continue to rise for us....Oil has risen 67% for us while 43% for the EU, the difference being our "Dollar" devaluation, DONE PURPOSELY by this administration, to try to reduce our trade deficit by making things "cheap" in the USA through the weakening....NO ONE has ever taken this approach before but for some reason these idiots have taken this route...

I think National Health care was suppose to cost less in a year than the $30 billion BAILOUT that this Administration handed away today....if this $30 billion does not settle the spiral down....then the money will DRY UP and our economy or businesses will not have money to fund their businesses or advance their businesses or to advance even technology.....due to the banking collapse....

And every bank that collapses, GUESS WHO HAS TO PAY the people invested?

WE DO, via our taxes.....and the federal insurance we litterally gave to the banking industry as a perk in the guise of securing "the people's" money up to $100k a person...FDIC and other insurances that the Fed agreed to put up for other banking transactions.... like I said, every bank that goes under, the FED or us, gets hurt badly....we pay for their failures.

I don't like the gloom and doom predictions or speculation that I have made....but to me, WE ARE IN BIG TROUBLE, much bigger than what is being let on.....get ready for a bumpier ride.... I pray I am wrong!

jd

I pray you are as well, but I don't think you are. Our economy is in trouble. Maybe more trouble than it was during the depression, but that is not the point of this thread. The point is that the events of Friday and today are not something to panic over.

Also, retirement is not something done on the spur of the moment. Anyone of age to retire and ready to retire today will have planned for their retirement. They should have adjusted their portfolio into conservative investments long ago. This correction won't hurt them too much.

As for the rest of us, well a depression will hurt, but that is not "wall street". Wall Street is just a small part of our economy in full. Wall street will survive. The market (as messured by the Dow Jones Industrials or S & P 500) may tumble but investors are still going to make money. Wall Street is an indication of where our economy is going... it is not our economy.

The economy on the other hand is looking kind of bleak at the moment. Everyone will blame George Bush, but the truth is that the economy goes in cycles and it is time for a down cycle. How far with it drop? Only God knows.

Is today really a bad day on Wall Street? For who? Not me... I'm not selling. But, neither am I going to be checking the balance of my holdings tomorrow morning!!!! :laugh2: Talk about driving someone to drink :lol:

Immie

[Mr. P]

I pray you are as well, but I don't think you are. Our economy is in trouble. Maybe more trouble than it was during the depression, but that is not the point of this thread. The point is that the events of Friday and today are not something to panic over.

Also, retirement is not something done on the spur of the moment. Anyone of age to retire and ready to retire today will have planned for their retirement. They should have adjusted their portfolio into conservative investments long ago. This correction won't hurt them too much.

As for the rest of us, well a depression will hurt, but that is not "wall street". Wall Street is just a small part of our economy in full. Wall street will survive. The market (as messured by the Dow Jones Industrials or S & P 500) may tumble but investors are still going to make money. Wall Street is an indication of where our economy is going... it is not our economy.

The economy on the other hand is looking kind of bleak at the moment. Everyone will blame George Bush, but the truth is that the economy goes in cycles and it is time for a down cycle. How far with it drop? Only God knows.

Is today really a bad day on Wall Street? For who? Not me... I'm not selling. But, neither am I going to be checking the balance of my holdings tomorrow morning!!!! :laugh2: Talk about driving someone to drink :lol:

Immie

No shit! when the Dot coms burst I lost 45K in my 401! I've been drinking ever since! I ain't checking on this one...NO WAY! :cheers2:

[manu1959]

No not everytime but when they know the economy is screwed and they can not capture new market share to make the differance then they cut the payroll and close failing outlets.

This is a quickly contracting market and the only real option for most industries right now is to close down outlets and trim the employee ranks.

funny my retail clients are all expanding.....money is cheap and so is realestate.....that would mean more jobs....

[JohnDoe]

funny my retail clients are all expanding.....money is cheap and so is realestate.....that would mean more jobs....hmmmm....When's that going to show up in the economic numbers then....anytime soon?:poke:

[Immanuel]

hmmmm....When's that going to show up in the economic numbers then....anytime soon?:poke:

As soon as GWB can find a way to spin this to look good for him. :poke:

Immie