Black Friday
DriftingByTheStorm
Posts: 8,684
Whoa.
Holy shit, i slept in this morning.
Can you say Black Friday?
Wow.
Today, just like in 1917, the market is getting bailed out by ole JP Morgan. In '17 it was literally Mr. Morgan himself sending money in to the stock exchange pit proper to bail out the traders.
Today it is JP Morgan Chase, the bank, in combination with the New York Fed (which JP Morgan is 1 of the largest owners of!) bailing out Bear Stearns .... which is a big investment bank that is about to fail.
The market is back to being WAY down.
I mean for the day. SP is down about 30 or so.
Gold is at 1007!
1007.
Holy shit.
The market is actualy NOT lower than it was at anytime in the last 2 weeks, but it is testing those same lows.
Only reason it has not been substantialy lower is every time the market gets to 11850 on the Dow or 1280 on the SP, something "fishy" happens. A bail out is announced. A Fed dollar giveaway is announced. The exchange has some weird "problem" that causes everyone's trading screen to go whack, and everyone bails out of their sell positions. I dunno man.
Today not looking good at all.
Not at all.
[edit] if you want to know just how bad this is, the deal arranged between JP Morgan & the NY Fed allows Morgan to lend to Bear Sterns, and if Bear Sterns defaults on their loans from Morgan, the Fed will NOT hold Morgan accountable for the loss. The Fed is saying they've done this twice before. Once in the 1930s during the great depression, and once in the 1960's. That's a good precedent, huh?
:(
Holy shit, i slept in this morning.
Can you say Black Friday?
Wow.
Today, just like in 1917, the market is getting bailed out by ole JP Morgan. In '17 it was literally Mr. Morgan himself sending money in to the stock exchange pit proper to bail out the traders.
Today it is JP Morgan Chase, the bank, in combination with the New York Fed (which JP Morgan is 1 of the largest owners of!) bailing out Bear Stearns .... which is a big investment bank that is about to fail.
The market is back to being WAY down.
I mean for the day. SP is down about 30 or so.
Gold is at 1007!
1007.
Holy shit.
The market is actualy NOT lower than it was at anytime in the last 2 weeks, but it is testing those same lows.
Only reason it has not been substantialy lower is every time the market gets to 11850 on the Dow or 1280 on the SP, something "fishy" happens. A bail out is announced. A Fed dollar giveaway is announced. The exchange has some weird "problem" that causes everyone's trading screen to go whack, and everyone bails out of their sell positions. I dunno man.
Today not looking good at all.
Not at all.
[edit] if you want to know just how bad this is, the deal arranged between JP Morgan & the NY Fed allows Morgan to lend to Bear Sterns, and if Bear Sterns defaults on their loans from Morgan, the Fed will NOT hold Morgan accountable for the loss. The Fed is saying they've done this twice before. Once in the 1930s during the great depression, and once in the 1960's. That's a good precedent, huh?
:(
If I was to smile and I held out my hand
If I opened it now would you not understand?
If I opened it now would you not understand?
Post edited by Unknown User on
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Comments
Jim Cramer is on CNBC by phone,
and he just accused the Fed of being "extremely selective in its financing".
He was railing on the Fed for backing\guaranteeing financing to Morgan (so that Morgan will lend to Bear Sterns), but NOT guaranteeing the paper for Fannie Mae (mortgages).
Cramer is RIGHT ON.
This is how it works people.
All my "conspiracy" babble, that you peeps don't want to pay attention to? This is the "Federal Reserve Conspiracy" in action.
The Fed is owned in large part by JP Morgan.
The two anchors on CNBC about 10 minutes ago (Mark Haynes, and Erin Burnett) said, "We were discussing this situation, trying to find a silver lining here. About the only good thing we can come up with is that JP Morgan will make out with some cheap assets on this. Thats all we got. Morgan seems like they could really consolidate some good assets here on the cheap, which is good for them. But that's about it."
THAT IS WHAT THIS IS ABOUT!
CONSOLIDATING WEALTH.
That is why JP Morgan, the MAN, back in the depression did EXACTLY what he did. He instigated a crash by spreading bank failure rumours and causing it to come true by starting a bank run ... THEN HE BOUGHT UP ALL THE FAILING BANKS.
:(
Here we go again!
If I opened it now would you not understand?
Typo Man: "Thanks kidz, but remembir, stay in skool!"
I can't argue with the, "its a phase", line.
You're right.
However, this looks like it could end up being "abnormaly" bad.
The Fed has already made unprecedented moves of liquidity, and everytime the market goes right back down within a day or two.
This is shaping up to be really really bad.
And cyclical is not going to help people like my parents, who are just as you, intent on "waiting this out".
However, at 62, how much time do you have to "wait it out". When 25% of your asset value dissapeared between Dec and Feb, and another 15% may dissapear between now and Summer.
And then past summer man, god only knows.
Something is going to give further.
The only bailout possible comes at the direct expense at the dollar. And the dollar can't take anymore writeoffs, as it were.
So the only upside we stand to see here in the short term is banks going under, and the elite via institutions like JP Morgan Chase getting even wealthier in real assets off the crash ...
... besides that, we are facing the increasingly real risk of our actual currency breaking down and becoming worthless. You may think that is an improbability, but trust me it is growing more and more real by the day.
Santelli just said on CNBC, "i've asked all the guys around me here in the pit, and their clients have all pretty much stopped trading for the most part. They are in wealth preservation mode. Its just to risky. The only trades they are making now, they are short the dollar, long fed fund futures, and long the eurodollar."
When you have all the big money in the trading pits no longer even trading securities, that is problematic itself. When the only trades they are making are bets against the dollar in 3 different ways, that is very disturbing, to say the least.
:(
Bottom line: Let me just say this. Yes this is a cyclical occurence. That being said, this is looking like it could be a lot more like the great depression if things play out bad for the dollar than it is akin to something like the 70's. If that is the case, the "cycle" lasted 10 years or more, and the return to wealth came on the back of World War II.
So, is that what our hope is at this point? 10 years of utter destitution, followed by World War III?
:eek:
If I opened it now would you not understand?
your stocks
lol
your
I don't follow...
Typo Man: "Thanks kidz, but remembir, stay in skool!"
1) Vitalogy
2) Yield
3) Ten
4) No Code
5) Riot Act
6) Vs.
7) Pearl Jam
8) Binaural
Cyclical is one thing. Foreclosures at an all time high, a war we cannot extricate ourselves from, gas prices out of control, commodities at an all time high is another. This is really fucking bad. And you are right, you probably don't have to freak out about this--shit, you can just sit on your stocks. Guess what dipshit? The majority of the population doesn't have your cushion. These are the people that are going to get hurt. And when they get hurt, we will all feel it. Well, except you. Go grab your silver spoon and have another sip of some SHUT THE FUCK UP soup. Idiot.
Isn't that what Potter was doing in It's A Wonderful Life. He was paying people 50 cents on the dollar or something like that. Potter = JP Morgan?
http://inthepresenttense.blogspot.com/
basically this is exposing a lot of really really stupid practices though. Yes I'm upset the economy is in a down turn but it takes "market corrections" and recessions to change the way things are done.
This is what happens when people get really stupid with the way they do business. When people at the top of major corporations make really dumb decisions it effects the whole economy.... This is the time when all that bad debt that was issued that no one cared about for years has come to roost. The economy was unrealistically inflated and people have unrealisticaly projected growth. Other than waiting it out and going with gold or foreign currency if you have some liquidity or other safer means panic is only going to make the situation worse.
I'm hoping some better practices are built within corporations and the government. It's kind of suprising but not all that shocking that after the fraud of the late 90's and book cooking from Arthur Anderson Wall Street would pick back up where they left off and sell debts all over the place. Flip that debt so to speak.
Now we are left holding the bag for unrealistic get rich quick people. Live reasonably and well within your means and this is less of a worry.
Wall Street is getting EXACTLY what it earned on this though. They found a way to expand their market for a few years and get fat now all that bad debt is coming home to roost, and the Fed has done a terrible job of regulating it.
I tend to believe this is where all those lobby dollars and campaign contributions fuck the economy.
Jealosy isn't very becoming. Maybe you should be more careful with your money.
Silver spoon? Going to college and finishing up my Masters degree so I can make enough money to live comfortably means I am a dipshit? Holy cow is this the biggest over-reaction I may have ever seen. My advice is, FOR THOSE THAT CAN (better?): sit it out and relax. Panic causes more panic. Recessions suck for a LOT of people. I get that. Econ 101 did not pass me by. This recession may be severe, but it is a recession and we will have them continually as long as we have an economy.
Yes, people will suffer this time around. But guess what? People suffer when the economy booms. Where was your 'oh woe are the people' attitude in 1999?
Get of your soap box.
Typo Man: "Thanks kidz, but remembir, stay in skool!"
If you know your objective and your long term goals focus on the end result and the process (controllables) and not the market, government, fed, etc (uncontrollables).
While I disagree with many of the moves going on at Wall Street, I also know long term planning (protection and accumulation) is the most important aspect of ones financial future, not the day to day garbage going on with the Dow.
Many are freaking out, but focus on what you can control (amount you invest, where you invest, proper protection, how much you spend, the structure of your debt or lackthereof, and taking advantage of the tax advantaged investment vehicles you can use). Finding return (lower tax) on a 1040 is just as important as investment returns.
EV
They aren't going to rationalize it.
At least, not this one.
I'm railing against it.
Hell even Jim Cramer was on a soap box last friday accusing The Fed of being "highly selective".
I call it, "serving their master at the expense of the public."
Pacomc79 is right about Wall St. getting what it deserves.
Unfortuantely Wall St.'s arrogance is causing Main St. pain. In fact Wall St will probably get out of this at the large expense of Main St.
What i really have a problem with, like Cramer and the CEO and board members of Bear Sterns is, regardless of how bad Bear Sterns "fucked up" with their business model and investment strategy in recent years, it is INEXUSEABLE for the Fed to pretend to be the market savior by guaranteeing loans to JP Morgan so that it can swallow up the real assets of Bear Sterns on the cheap ... but yet it would not do the same for the mortgage industry vis a vis Fannie Mae, and it certainly did nothing to help Bear Sterns directly.
Look, i'm not advocating they go around bailing people out.
Nah. Its not my bleeding heart sympathy for BSC or FNM that is getting me, its the blatant self-interest of the Fed that has me seething.
JP Morgan is one of the PRIMARY OWNERS of The NY Federal Reserve Bank. No one finds it just a bit full of bullshit that the same policy setting institution that they own just happens to turn around and give them a massive loan guarantee so that they can consolidate wealth on the cheap?
The Fed will nationalize any loss Morgan takes, but they are giving Morgan billions and billions in potential profit and assets. And it just happens that Morgan is actualy a major controlling interest in The Fed.
THAT is where i get real hot.
:mad:
If I opened it now would you not understand?
That's freaking highway robbery.
This is politics and business at thier absolute worst. I wonder who their people spend thier campaign money on.