400 points and dropping

[Mani]

Originally posted by: WhipperSnapper

Originally posted by: nullzero
We are screwed big time... Great Depression #2 here we come... History repeats itself.

But will the government legalize suicide this time around and allow humanitarians to set up Suicide-a-toriums so that members of the homeless, starving masses who want to die can do so in a painless, dignified manner?

Nah, the Christians and Sarah Palin types would never allow it; people will have to throw themselves in front of trucks and off of buildings and bridges.

Not to worry. Since the republicans are removing assault weapons bans, it will make the job a whole lot easier. And as a bonus, they'll be able to take out several others with them.

 

[ericlp]

Originally posted by: CADsortaGUY
PANIC!!!!!!!!

Phhht, no shit, why is anyone afraid of a little loss. It's normal, I mean like bush and mcsame and the bush with a skirt say. The economy is GREAT!!!!


Why worry about it??? It's no big deal everything is peaches and cream!

Now back to reality! Take a big breath! PANIC!!!!!!!!!! Really this time!

 

[Budarow]

Originally posted by: mshan
Word on the Street: http://www.cnbc.com/id/15840232?video=857037845&play=1
Pension Funds and Endowments: http://www.cnbc.com/id/15840232?video=857064742&play=1


30-40 : 1 leverage: ouch!!!! (they mentioned something about an AIG Financial Arm that might have really exposed the whole company to tremendous risk)

"...it is abundantly clear that deleveraging (of the balance sheets of our financial intermediaries and in the disintermediation surrounding the world's hedge fund community) is a rabid bitch and has contributed to the current bear market in stocks and bull market in risk-aversion."

"During today's period of stress and deleveraging, there is "nowhere to run to, baby, no place to hide." Investors/traders face the unenviable (and sometimes non-rigorous) task of gaming hedge fund activity rather than gaming fundamentals. It helps to explain a market without memory from day to day, and it helps to explain why the smartest hedge fund investors extant are sitting on their hands with plenty of liquidity, just waiting to capitalize on the aforementioned fear."

http://www.thestreet.com/story...ss-short-on-logic.html

I heard the comments on CNBC regarding the 30-40 leverage used by banks/brokerages on real estate and can only say I'm completely shocked. When all these billion $ write-downs started happening last summer, I had a bad feeling "leverage" had been utilized which explained why so many firms were losing so much money. But 30x simply blows me away.

We may have parked all our retirement funds in money market accounts a while back so we have little to lose in the short term, but both my wife and I have to work to pay the bills and are a LONG way from any kind of retirement.

I'm honestly very affraid of where this will all end up.

 

[Budarow]

Does anyone know a way to diversify currencies? I don't mean ETF and the "currency play" itself. I want to transfer money in retirement accounts (in U.S. $) into an account in a foreign currency and invest in mutual funds/stocks.

I'm NOT trying to avoid U.S. taxes or anything, I just want to diversify my holding into more than just U.S. dollars and I'm running out of time to do so (IMO).

Thanks,

Bud

 

[Ferocious]

I 've been reading that now a lot of stable value and 'safe' type funds could start to lose significant value as many of them invested into a lot of mortgage related debt.

 

[Budarow]

Originally posted by: Ferocious
I 've been reading that now a lot of stable value and 'safe' type funds could start to lose significant value as many of them invested into a lot of mortgage related debt.

These banks and brokerages were making billions of dollars due to mortgages and it looks like "everyone" wanted a piece of the action. Hence, even "safe" firms/funds will get hurt because they got their piece of the action all right.

 

[Craig234]

Originally posted by: Budarow
Does anyone know a way to diversify currencies? I don't mean ETF and the "currency play" itself. I want to transfer money in retirement accounts (in U.S. $) into an account in a foreign currency and invest in mutual funds/stocks.

I'm NOT trying to avoid U.S. taxes or anything, I just want to diversify my holding into more than just U.S. dollars and I'm running out of time to do so (IMO).

Thanks,

Bud

There are a variety of mutual funds that hold foreign currencies. Your brokerage can give you info. They may get hit big time - even worse - from US problems though.

 

[Budarow]

Originally posted by: Craig234

Originally posted by: Budarow
Does anyone know a way to diversify currencies? I don't mean ETF and the "currency play" itself. I want to transfer money in retirement accounts (in U.S. $) into an account in a foreign currency and invest in mutual funds/stocks.

I'm NOT trying to avoid U.S. taxes or anything, I just want to diversify my holding into more than just U.S. dollars and I'm running out of time to do so (IMO).

Thanks,

Bud

There are a variety of mutual funds that hold foreign currencies. Your brokerage can give you info. They may get hit big time - even worse - from US problems though.

Several years ago I thought about just buying "international" mutual funds thinking they'd convert my U.S. currency into the currency of the country receiving the investment money and I could benefit if the foreign currency appreciated; however, I read a prospectus from American Century that they hedge for currency fluctuation. Unless I didn't understand what the prospectus meant, it seems I wouldn't be holding any currency other than U.S.

Maybe other mutal funds don't hedge against currency fluctuation?

 

[StageLeft]

Originally posted by: Budarow

Originally posted by: Craig234

Originally posted by: Budarow
Does anyone know a way to diversify currencies? I don't mean ETF and the "currency play" itself. I want to transfer money in retirement accounts (in U.S. $) into an account in a foreign currency and invest in mutual funds/stocks.

I'm NOT trying to avoid U.S. taxes or anything, I just want to diversify my holding into more than just U.S. dollars and I'm running out of time to do so (IMO).

Thanks,

Bud

There are a variety of mutual funds that hold foreign currencies. Your brokerage can give you info. They may get hit big time - even worse - from US problems though.

Several years ago I thought about just buying "international" mutual funds thinking they'd convert my U.S. currency into the currency of the country receiving the investment money and I could benefit if the foreign currency appreciated; however, I read a prospectus from American Century that they hedge for currency fluctuation. Unless I didn't understand what the prospectus meant, it seems I wouldn't be holding any currency other than U.S.

Maybe other mutal funds don't hedge against currency fluctuation?

Well, ultimately, when you buy international you end up with ownership in international stock, so it still may be valued in USD, but you don't own a US company and its value would swing as exchange does. So, if you bought $1000 US of something in Germany and then the US dollar lost 90% of its value, you'd now own $10,000 US of that same thing, although in German terms you still own the same percentage as before the dollar died.

I think,

 

[Engineer]

Down 150 to start the day. Dow at 10,750.

 

[brandonb]

Oil down $5 too. $91 a barrel.

 

[Engineer]

Originally posted by: brandonb
Oil down $5 too. $91 a barrel.

On fears of a global recession.

 

[LegendKiller]

Originally posted by: Engineer

Originally posted by: brandonb
Oil down $5 too. $91 a barrel.

On fears of a global recession.

More like massive fund redemptions, nobody investing in the futures markets, and speculatory strategies crumbling in the face of financial crisis.

This has got nothing at all to do with demand. Deleveraging is happening.

 

[mshan]

Forced Selling?: http://www.cnbc.com/id/15840232?video=858307259&play=1

 

[miketheidiot]

Originally posted by: LegendKiller

Originally posted by: Engineer

Originally posted by: brandonb
Oil down $5 too. $91 a barrel.

On fears of a global recession.

More like massive fund redemptions, nobody investing in the futures markets, and speculatory strategies crumbling in the face of financial crisis.

This has got nothing at all to do with demand. Deleveraging is happening.

amen

i'm going to call $70 barrel now, baring an actual opec action, or war in europe.

 

[Budarow]

Originally posted by: LegendKiller

Originally posted by: Engineer

Originally posted by: brandonb
Oil down $5 too. $91 a barrel.

On fears of a global recession.

More like massive fund redemptions, nobody investing in the futures markets, and speculatory strategies crumbling in the face of financial crisis.

This has got nothing at all to do with demand. Deleveraging is happening.

Bingo.

 

[GroundMeat]

Why would you want to invest in foreign currencies? You might want to look at what the USD is doing vs everyone else.

Keep in mind in MF's you never own the underlying securities you own shares of the MF, big difference.

Skroob you're close enough.

MKT ended up 140, as for tomorrow: http://www.forbes.com/afxnewsl.../09/17/afx5434595.html

 

[HomerJS]

According to this thread things are just peachy

A Prof John exclusive...