In case you missed it. Etrade lost 60% of it’s market cap today due to subprime.

[Coronita]

I 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. 

[Coronita]

I 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. 

[Borat]

Yeah, I understand not wanting to take a chance. But if everyone just pulls their money out willy nilly because joe analyst says that the company might be in trouble if people start pulling their money out, then it becomes a self-fulfilling prophecy. And then everyone moves to some other bank and the cycle repeats again when joe analyst writes the same thing about that bank. That opinion was actually quite silly when you think about it — “If people start pulling all their money out, then e-trade could be in trouble!” No s*** sherlock, the same is true for any bank. I wonder how much he gets paid to write those little pearls of wisdom.

Again, if you have faith in the FDIC insurance there should be nothing to worry about. If you don’t have faith in it then it will be hard to find a safe place to put that money…

[Borat]

Yeah, I understand not wanting to take a chance. But if everyone just pulls their money out willy nilly because joe analyst says that the company might be in trouble if people start pulling their money out, then it becomes a self-fulfilling prophecy. And then everyone moves to some other bank and the cycle repeats again when joe analyst writes the same thing about that bank. That opinion was actually quite silly when you think about it — “If people start pulling all their money out, then e-trade could be in trouble!” No s*** sherlock, the same is true for any bank. I wonder how much he gets paid to write those little pearls of wisdom.

Again, if you have faith in the FDIC insurance there should be nothing to worry about. If you don’t have faith in it then it will be hard to find a safe place to put that money…

[Borat]

Yeah, I understand not wanting to take a chance. But if everyone just pulls their money out willy nilly because joe analyst says that the company might be in trouble if people start pulling their money out, then it becomes a self-fulfilling prophecy. And then everyone moves to some other bank and the cycle repeats again when joe analyst writes the same thing about that bank. That opinion was actually quite silly when you think about it — “If people start pulling all their money out, then e-trade could be in trouble!” No s*** sherlock, the same is true for any bank. I wonder how much he gets paid to write those little pearls of wisdom.

Again, if you have faith in the FDIC insurance there should be nothing to worry about. If you don’t have faith in it then it will be hard to find a safe place to put that money…

[Borat]

Yeah, I understand not wanting to take a chance. But if everyone just pulls their money out willy nilly because joe analyst says that the company might be in trouble if people start pulling their money out, then it becomes a self-fulfilling prophecy. And then everyone moves to some other bank and the cycle repeats again when joe analyst writes the same thing about that bank. That opinion was actually quite silly when you think about it — “If people start pulling all their money out, then e-trade could be in trouble!” No s*** sherlock, the same is true for any bank. I wonder how much he gets paid to write those little pearls of wisdom.

Again, if you have faith in the FDIC insurance there should be nothing to worry about. If you don’t have faith in it then it will be hard to find a safe place to put that money…

[Borat]

Yeah, I understand not wanting to take a chance. But if everyone just pulls their money out willy nilly because joe analyst says that the company might be in trouble if people start pulling their money out, then it becomes a self-fulfilling prophecy. And then everyone moves to some other bank and the cycle repeats again when joe analyst writes the same thing about that bank. That opinion was actually quite silly when you think about it — “If people start pulling all their money out, then e-trade could be in trouble!” No s*** sherlock, the same is true for any bank. I wonder how much he gets paid to write those little pearls of wisdom.

Again, if you have faith in the FDIC insurance there should be nothing to worry about. If you don’t have faith in it then it will be hard to find a safe place to put that money…

[4plexowner]

http://calculatedrisk.blogspot.com/2007/11/etrade-sells-portfolio-for-27-cents-on.html

“The subprime crisis claimed a new scalp Thursday, as E-Trade’s CEO Mitch Caplan said he was stepping down as part of a deal that has private equity firm Citadel injecting $2.55 billion into the troubled firm”

[4plexowner]

http://calculatedrisk.blogspot.com/2007/11/etrade-sells-portfolio-for-27-cents-on.html

“The subprime crisis claimed a new scalp Thursday, as E-Trade’s CEO Mitch Caplan said he was stepping down as part of a deal that has private equity firm Citadel injecting $2.55 billion into the troubled firm”

[4plexowner]

http://calculatedrisk.blogspot.com/2007/11/etrade-sells-portfolio-for-27-cents-on.html

“The subprime crisis claimed a new scalp Thursday, as E-Trade’s CEO Mitch Caplan said he was stepping down as part of a deal that has private equity firm Citadel injecting $2.55 billion into the troubled firm”

[4plexowner]

http://calculatedrisk.blogspot.com/2007/11/etrade-sells-portfolio-for-27-cents-on.html

“The subprime crisis claimed a new scalp Thursday, as E-Trade’s CEO Mitch Caplan said he was stepping down as part of a deal that has private equity firm Citadel injecting $2.55 billion into the troubled firm”

[4plexowner]

http://calculatedrisk.blogspot.com/2007/11/etrade-sells-portfolio-for-27-cents-on.html

“The subprime crisis claimed a new scalp Thursday, as E-Trade’s CEO Mitch Caplan said he was stepping down as part of a deal that has private equity firm Citadel injecting $2.55 billion into the troubled firm”

[Author]

Posts