Home › Forums › Housing › In case you missed it. Etrade lost 60% of it’s market cap today due to subprime.
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4plexowner.
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November 16, 2007 at 12:27 PM #100317November 16, 2007 at 12:27 PM #100319
robson
ParticipantJust thought you guys might be interested in this email I just got from Etrade
“The past few months have been challenging for the financial services industry. And, as you may be aware, E*TRADE has been the subject of some unfounded rumors and speculation in recent days.
While many of our customers have openly expressed their confidence in us, I’m writing to reassure you that your money is safe at E*TRADE FINANCIAL.
Because the sweep option for your brokerage account is the E*TRADE FINANCIAL Extended Insurance Sweep Deposit Account, you have one of the highest levels of asset protection in the industry—including 5X the FDIC coverage for our standard sweep accounts¹:
FDIC insures all E*TRADE Bank accounts to at least $100,000 and Extended Insurance Sweep Deposit Accounts to $500,000².
SIPC protects E*TRADE Securities customers up to $500,000 (including $100,000 for claims for cash).
Additional E*TRADE Securities protection of up to $150 million per brokerage account is underwritten by London insurers (aggregate $600 million).
E*TRADE is well capitalized by regulatory standards. In addition, our core business is thriving. Today, over 3.5 million customers worldwide rely on us for their trading, investing, and banking needs.
Our ability and commitment to invest in our products, services, systems, and platforms are stronger than ever. We look forward to serving you for many years to come.”I wonder just how many customers have pulled their assets so far?
November 16, 2007 at 12:45 PM #100217Borat
ParticipantI wonder just how many customers have pulled their assets so far?
Good question, but an even better one would be why are they pulling their money out at all? As long as your accounts are below the insured limits, you’re safe. I wonder if this whole thing wasn’t just a trick conjured up to make some quick cash on the etrade stock. That one goofy analyst opinion drove the stock down farther than it should go then someone buys up the shares before they bounce back. Those that bought down at 3.50 on Monday are now up over 50%. I’m convinced that 99% of the stuff you read about stocks in the news is designed to manipulate the market.
Still, their mortgage exposure is a bit scary but not “stuff your money in the mattress” kind of scary…
November 16, 2007 at 12:45 PM #100295ParticipantI wonder just how many customers have pulled their assets so far?
Good question, but an even better one would be why are they pulling their money out at all? As long as your accounts are below the insured limits, you’re safe. I wonder if this whole thing wasn’t just a trick conjured up to make some quick cash on the etrade stock. That one goofy analyst opinion drove the stock down farther than it should go then someone buys up the shares before they bounce back. Those that bought down at 3.50 on Monday are now up over 50%. I’m convinced that 99% of the stuff you read about stocks in the news is designed to manipulate the market.
Still, their mortgage exposure is a bit scary but not “stuff your money in the mattress” kind of scary…
November 16, 2007 at 12:45 PM #100313ParticipantI wonder just how many customers have pulled their assets so far?
Good question, but an even better one would be why are they pulling their money out at all? As long as your accounts are below the insured limits, you’re safe. I wonder if this whole thing wasn’t just a trick conjured up to make some quick cash on the etrade stock. That one goofy analyst opinion drove the stock down farther than it should go then someone buys up the shares before they bounce back. Those that bought down at 3.50 on Monday are now up over 50%. I’m convinced that 99% of the stuff you read about stocks in the news is designed to manipulate the market.
Still, their mortgage exposure is a bit scary but not “stuff your money in the mattress” kind of scary…
November 16, 2007 at 12:45 PM #100327ParticipantI wonder just how many customers have pulled their assets so far?
Good question, but an even better one would be why are they pulling their money out at all? As long as your accounts are below the insured limits, you’re safe. I wonder if this whole thing wasn’t just a trick conjured up to make some quick cash on the etrade stock. That one goofy analyst opinion drove the stock down farther than it should go then someone buys up the shares before they bounce back. Those that bought down at 3.50 on Monday are now up over 50%. I’m convinced that 99% of the stuff you read about stocks in the news is designed to manipulate the market.
Still, their mortgage exposure is a bit scary but not “stuff your money in the mattress” kind of scary…
November 16, 2007 at 12:45 PM #100329ParticipantI wonder just how many customers have pulled their assets so far?
Good question, but an even better one would be why are they pulling their money out at all? As long as your accounts are below the insured limits, you’re safe. I wonder if this whole thing wasn’t just a trick conjured up to make some quick cash on the etrade stock. That one goofy analyst opinion drove the stock down farther than it should go then someone buys up the shares before they bounce back. Those that bought down at 3.50 on Monday are now up over 50%. I’m convinced that 99% of the stuff you read about stocks in the news is designed to manipulate the market.
Still, their mortgage exposure is a bit scary but not “stuff your money in the mattress” kind of scary…
November 16, 2007 at 6:07 PM #100336Chris Scoreboard Johnston
ParticipantChris Johnston
For those of you that are interested in GOLD I just felt compelled to correct a post by stocktradr. There is no correlation that is meaningful between times of financial stress and Gold values. Just go look back at stock market crashes of the past and you will see that GOLD has actually declined more than it has rallied during these periods.
Put your money in GOLD if you think it is prudent, but do not do it for the reason that was stated, it is inaccurate. Inflation is the main driver of GOLD prices, I covered this in great detail in one of my newsletters to clients last year. It is true that inflation at times has been present during stock declines, but it has not always been there.
The ETrade situation is a shame, but I doubt a reason for immediate panic. Fear is a great sell for books etc.. but rarely pushes you into correct decisions.
November 16, 2007 at 6:07 PM #100416ParticipantChris Johnston
For those of you that are interested in GOLD I just felt compelled to correct a post by stocktradr. There is no correlation that is meaningful between times of financial stress and Gold values. Just go look back at stock market crashes of the past and you will see that GOLD has actually declined more than it has rallied during these periods.
Put your money in GOLD if you think it is prudent, but do not do it for the reason that was stated, it is inaccurate. Inflation is the main driver of GOLD prices, I covered this in great detail in one of my newsletters to clients last year. It is true that inflation at times has been present during stock declines, but it has not always been there.
The ETrade situation is a shame, but I doubt a reason for immediate panic. Fear is a great sell for books etc.. but rarely pushes you into correct decisions.
November 16, 2007 at 6:07 PM #100433ParticipantChris Johnston
For those of you that are interested in GOLD I just felt compelled to correct a post by stocktradr. There is no correlation that is meaningful between times of financial stress and Gold values. Just go look back at stock market crashes of the past and you will see that GOLD has actually declined more than it has rallied during these periods.
Put your money in GOLD if you think it is prudent, but do not do it for the reason that was stated, it is inaccurate. Inflation is the main driver of GOLD prices, I covered this in great detail in one of my newsletters to clients last year. It is true that inflation at times has been present during stock declines, but it has not always been there.
The ETrade situation is a shame, but I doubt a reason for immediate panic. Fear is a great sell for books etc.. but rarely pushes you into correct decisions.
November 16, 2007 at 6:07 PM #100447ParticipantChris Johnston
For those of you that are interested in GOLD I just felt compelled to correct a post by stocktradr. There is no correlation that is meaningful between times of financial stress and Gold values. Just go look back at stock market crashes of the past and you will see that GOLD has actually declined more than it has rallied during these periods.
Put your money in GOLD if you think it is prudent, but do not do it for the reason that was stated, it is inaccurate. Inflation is the main driver of GOLD prices, I covered this in great detail in one of my newsletters to clients last year. It is true that inflation at times has been present during stock declines, but it has not always been there.
The ETrade situation is a shame, but I doubt a reason for immediate panic. Fear is a great sell for books etc.. but rarely pushes you into correct decisions.
November 16, 2007 at 6:07 PM #100449ParticipantChris Johnston
For those of you that are interested in GOLD I just felt compelled to correct a post by stocktradr. There is no correlation that is meaningful between times of financial stress and Gold values. Just go look back at stock market crashes of the past and you will see that GOLD has actually declined more than it has rallied during these periods.
Put your money in GOLD if you think it is prudent, but do not do it for the reason that was stated, it is inaccurate. Inflation is the main driver of GOLD prices, I covered this in great detail in one of my newsletters to clients last year. It is true that inflation at times has been present during stock declines, but it has not always been there.
The ETrade situation is a shame, but I doubt a reason for immediate panic. Fear is a great sell for books etc.. but rarely pushes you into correct decisions.
November 17, 2007 at 2:26 AM #100405
CoronitaParticipantI wonder just how many customers have pulled their assets so far?
Good question, but an even better one would be why are they pulling their money out at all? As long as your accounts are below the insured limits, you're safe. I wonder if this whole thing wasn't just a trick conjured up to make some quick cash on the etrade stock. That one goofy analyst opinion drove the stock down farther than it should go then someone buys up the shares before they bounce back. Those that bought down at 3.50 on Monday are now up over 50%. I'm convinced that 99% of the stuff you read about stocks in the news is designed to manipulate the market.
Still, their mortgage exposure is a bit scary but not "stuff your money in the mattress" kind of scary…
Because even though there shouldn't be a problem, why take a chance? You're not being rewarded for the extra risk. As far as the stock price, stock price is a reflection of market sentiment. What you saw falling to 3.5 could have been an overreaction. The rise to $5 could be because some of that initial panic subsided OR it could just be a dead cat bounce: people think it went down so much it has to rise and hence bought. Only time will tell.
I did clean out our accounts.
November 17, 2007 at 2:26 AM #100486CoronitaParticipantI wonder just how many customers have pulled their assets so far?
Good question, but an even better one would be why are they pulling their money out at all? As long as your accounts are below the insured limits, you're safe. I wonder if this whole thing wasn't just a trick conjured up to make some quick cash on the etrade stock. That one goofy analyst opinion drove the stock down farther than it should go then someone buys up the shares before they bounce back. Those that bought down at 3.50 on Monday are now up over 50%. I'm convinced that 99% of the stuff you read about stocks in the news is designed to manipulate the market.
Still, their mortgage exposure is a bit scary but not "stuff your money in the mattress" kind of scary…
Because even though there shouldn't be a problem, why take a chance? You're not being rewarded for the extra risk. As far as the stock price, stock price is a reflection of market sentiment. What you saw falling to 3.5 could have been an overreaction. The rise to $5 could be because some of that initial panic subsided OR it could just be a dead cat bounce: people think it went down so much it has to rise and hence bought. Only time will tell.
I did clean out our accounts.
November 17, 2007 at 2:26 AM #100503CoronitaParticipantI wonder just how many customers have pulled their assets so far?
Good question, but an even better one would be why are they pulling their money out at all? As long as your accounts are below the insured limits, you're safe. I wonder if this whole thing wasn't just a trick conjured up to make some quick cash on the etrade stock. That one goofy analyst opinion drove the stock down farther than it should go then someone buys up the shares before they bounce back. Those that bought down at 3.50 on Monday are now up over 50%. I'm convinced that 99% of the stuff you read about stocks in the news is designed to manipulate the market.
Still, their mortgage exposure is a bit scary but not "stuff your money in the mattress" kind of scary…
Because even though there shouldn't be a problem, why take a chance? You're not being rewarded for the extra risk. As far as the stock price, stock price is a reflection of market sentiment. What you saw falling to 3.5 could have been an overreaction. The rise to $5 could be because some of that initial panic subsided OR it could just be a dead cat bounce: people think it went down so much it has to rise and hence bought. Only time will tell.
I did clean out our accounts.
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