Home › Forums › Financial Markets/Economics › Fed partially nationalizes banks…..Wow…
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October 10, 2008 at 4:30 PM #14169October 10, 2008 at 7:03 PM #285359EconProfParticipant
It is my guess that today will mark at least a short term low for the stock market. Monday should be up. Consider: the NASDAQ was actually up, as were financials thanks to the above new policies. There was no end-of-session collapse, so traders were willing to hold their positions into the weekend. The Fed and Treasury have shown they will do whatever it takes to reliquify, even if it means inflation longer term. At some point, the bottom-fishers are going to scoop up some bargains after these rampant price drops. Early Monday will be the time to place limit orders.
P.S. How’s my track record for market timing? Lousy.
October 10, 2008 at 7:03 PM #285702EconProfParticipantIt is my guess that today will mark at least a short term low for the stock market. Monday should be up. Consider: the NASDAQ was actually up, as were financials thanks to the above new policies. There was no end-of-session collapse, so traders were willing to hold their positions into the weekend. The Fed and Treasury have shown they will do whatever it takes to reliquify, even if it means inflation longer term. At some point, the bottom-fishers are going to scoop up some bargains after these rampant price drops. Early Monday will be the time to place limit orders.
P.S. How’s my track record for market timing? Lousy.
October 10, 2008 at 7:03 PM #285650EconProfParticipantIt is my guess that today will mark at least a short term low for the stock market. Monday should be up. Consider: the NASDAQ was actually up, as were financials thanks to the above new policies. There was no end-of-session collapse, so traders were willing to hold their positions into the weekend. The Fed and Treasury have shown they will do whatever it takes to reliquify, even if it means inflation longer term. At some point, the bottom-fishers are going to scoop up some bargains after these rampant price drops. Early Monday will be the time to place limit orders.
P.S. How’s my track record for market timing? Lousy.
October 10, 2008 at 7:03 PM #285694EconProfParticipantIt is my guess that today will mark at least a short term low for the stock market. Monday should be up. Consider: the NASDAQ was actually up, as were financials thanks to the above new policies. There was no end-of-session collapse, so traders were willing to hold their positions into the weekend. The Fed and Treasury have shown they will do whatever it takes to reliquify, even if it means inflation longer term. At some point, the bottom-fishers are going to scoop up some bargains after these rampant price drops. Early Monday will be the time to place limit orders.
P.S. How’s my track record for market timing? Lousy.
October 10, 2008 at 7:03 PM #285671EconProfParticipantIt is my guess that today will mark at least a short term low for the stock market. Monday should be up. Consider: the NASDAQ was actually up, as were financials thanks to the above new policies. There was no end-of-session collapse, so traders were willing to hold their positions into the weekend. The Fed and Treasury have shown they will do whatever it takes to reliquify, even if it means inflation longer term. At some point, the bottom-fishers are going to scoop up some bargains after these rampant price drops. Early Monday will be the time to place limit orders.
P.S. How’s my track record for market timing? Lousy.
October 10, 2008 at 7:33 PM #285709patientlywaitingParticipantI’ve said that this is best way to go because:
– Buying equity gets capital immediately into the banks.
– Protects upside potential for taxpayers.
Banks lobbied for the bailout where they can dump the bad debt onto the Federal govt without diluting shareholder’s equity.
There was also an element of wanting not to “appear” socialist. But the velocity of the crash was such that capital needs to be immediately injected into the failing banks.
Why should the govt buy the bad paper and let the bank get off scot-free? It’s much better to invest in the banks the Warren Buffet way.
October 10, 2008 at 7:33 PM #285717patientlywaitingParticipantI’ve said that this is best way to go because:
– Buying equity gets capital immediately into the banks.
– Protects upside potential for taxpayers.
Banks lobbied for the bailout where they can dump the bad debt onto the Federal govt without diluting shareholder’s equity.
There was also an element of wanting not to “appear” socialist. But the velocity of the crash was such that capital needs to be immediately injected into the failing banks.
Why should the govt buy the bad paper and let the bank get off scot-free? It’s much better to invest in the banks the Warren Buffet way.
October 10, 2008 at 7:33 PM #285686patientlywaitingParticipantI’ve said that this is best way to go because:
– Buying equity gets capital immediately into the banks.
– Protects upside potential for taxpayers.
Banks lobbied for the bailout where they can dump the bad debt onto the Federal govt without diluting shareholder’s equity.
There was also an element of wanting not to “appear” socialist. But the velocity of the crash was such that capital needs to be immediately injected into the failing banks.
Why should the govt buy the bad paper and let the bank get off scot-free? It’s much better to invest in the banks the Warren Buffet way.
October 10, 2008 at 7:33 PM #285665patientlywaitingParticipantI’ve said that this is best way to go because:
– Buying equity gets capital immediately into the banks.
– Protects upside potential for taxpayers.
Banks lobbied for the bailout where they can dump the bad debt onto the Federal govt without diluting shareholder’s equity.
There was also an element of wanting not to “appear” socialist. But the velocity of the crash was such that capital needs to be immediately injected into the failing banks.
Why should the govt buy the bad paper and let the bank get off scot-free? It’s much better to invest in the banks the Warren Buffet way.
October 10, 2008 at 7:33 PM #285374patientlywaitingParticipantI’ve said that this is best way to go because:
– Buying equity gets capital immediately into the banks.
– Protects upside potential for taxpayers.
Banks lobbied for the bailout where they can dump the bad debt onto the Federal govt without diluting shareholder’s equity.
There was also an element of wanting not to “appear” socialist. But the velocity of the crash was such that capital needs to be immediately injected into the failing banks.
Why should the govt buy the bad paper and let the bank get off scot-free? It’s much better to invest in the banks the Warren Buffet way.
October 10, 2008 at 7:44 PM #285670peterbParticipantMaybe this lasts four weeks and then back on the pain train to 7500. Typical effort of govt to appear helpful. We’ll be extrememly lucky if this is just a recession. But this is not the bottom. As it becomes more obvious to the market that this will be the worst xmas season in decades, they will sell once more. Next leg down being 7200 to 7500.
October 10, 2008 at 7:44 PM #285691peterbParticipantMaybe this lasts four weeks and then back on the pain train to 7500. Typical effort of govt to appear helpful. We’ll be extrememly lucky if this is just a recession. But this is not the bottom. As it becomes more obvious to the market that this will be the worst xmas season in decades, they will sell once more. Next leg down being 7200 to 7500.
October 10, 2008 at 7:44 PM #285380peterbParticipantMaybe this lasts four weeks and then back on the pain train to 7500. Typical effort of govt to appear helpful. We’ll be extrememly lucky if this is just a recession. But this is not the bottom. As it becomes more obvious to the market that this will be the worst xmas season in decades, they will sell once more. Next leg down being 7200 to 7500.
October 10, 2008 at 7:44 PM #285714peterbParticipantMaybe this lasts four weeks and then back on the pain train to 7500. Typical effort of govt to appear helpful. We’ll be extrememly lucky if this is just a recession. But this is not the bottom. As it becomes more obvious to the market that this will be the worst xmas season in decades, they will sell once more. Next leg down being 7200 to 7500.
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