Wall Street, how low?

[SKYCHENEY]

What is a market? It is a price that is established for something based on what people are willing to buy and sell it at. If no one is willing to buy at a given selling price, the price must come down for that item. It's all based on confidence. If buyers and sellers have no confidence, then the prices fall.

It just bugs me that so many people think that someone is profiting from this fall in the markets. The value has literally just vanished. It wasn't real money in the first place. It really is true that you haven't lost anything until you sell, but it is also true that you haven't really gained anything until you sell either. At every moment in time before that, you are just holding paper. To show a profit or a loss, you have to complete the other side of the transaction.

 

[krush]

Spoken like a true talking head.....If your insight is so valueable, just why is it you are working for someone else?

Simple, experience. Why not get paid to learn and gain wisdom? Everybody has to "do the time" in the beginning--especially in my profession.

Additionally, it is nice to have solid cashflow for at least one year (my company probably won't have layoffs for at least a year--hopefully not at all).

 

[Passages]

Pundits are saying to expect a market bouce today. 3-10%.

Might be a good time to day trade but tomorrow may be another rough ride.

I believe we have not yet seen the bottom. GM & Chrysler will likely announce a merger as a matter of mutual survival. Banks are still trying to shore up reserves. Credit is still tight.

Interestingly though, I've spoken to several of my friends who own small businesses (Management Consulting, electronic distributorship, finance planning, Concrete contractor, geo-thermal contracting, photovoltaic installations, medical claims service company) All report a robust business. The only business owner who is seeing a slow down is the owner of an upscale resturant here in town.

 

[Genesis]

Up big today, but beware, because the CBs of the world went "all in" and I don't see the thaw that was predicted in the credit markets, especially LIBOR.

Bonds are closed today so you'll get light volume and this will accentuate the move - wouldn't be surprised to see +500 on the DOW.

But - if the credit doesn't thaw, this not only will be short-lived but will reverse violently to the downside.

 

[the kuz]

I just want to take this opportunity to publically thank Karl for his posts on this subject over the past two years. My "rising tide lifts all boats" productivity theory was wrong and he correctly predicted way early not only what was going to happen to the credit and equity markets, but how it was going to happen. But, the best things he said were "how much will you loose if I'm right?" and "how much will you make if you are right?" Based on that advice I moved all my equities into Governments one year ago this week. Karl if you ever get up to the Chesapeake, I owe you more that a few dinners and adult beverages. Thanks again for your insights. Best Regards, Bob K

 

[Passages]

I just want to take this opportunity to publically thank Karl for his posts on this subject over the past two years. My "rising tide lifts all boats" productivity theory was wrong and he correctly predicted way early not only what was going to happen to the credit and equity markets, but how it was going to happen. But, the best things he said were "how much will you loose if I'm right?" and "how much will you make if you are right?" Based on that advice I moved all my equities into Governments one year ago this week. Karl if you ever get up to the Chesapeake, I owe you more that a few dinners and adult beverages. Thanks again for your insights. Best Regards, Bob K

LOL - Kuz,
I sent Genesis a PM about a week ago saying the same thing.

He's going to get fat on all the dinners folks want to buy him.

 

[yachtsmanbill]

Is this really how it works??? ws

> Subject: Financial Education
>
>
>>
>> Once upon a time in a village, a man appeared and announced to the
>> villagers that he would buy monkeys for $10 each.
>>
>> The villagers seeing that there were many monkeys around, went out to

>> the forest, and started catching them.
>>
>> The man bought thousands at $10 and as supply started to diminish,
>> the villagers stopped their effort. He further announced that he
>> would now buy at $20.
>>
>> This renewed the efforts of the villagers and they started catching
>> monkeys again.
>>
>> Soon the supply diminished even further and people started going back

>> to their farms.
>>
>> The offer increased to $25 each and the supply of monkeys became so
>> little that it was an effort to even see a monkey, let alone catch
it!
>>
>> The man now announced that he would buy monkeys at $50!
>>
>> However, since he had to go to the city on some business, his
>> assistant would now buy on his behalf.
>>
>> In the absence of the man, the assistant told the villagers. 'Look at

>> all these monkeys in the big cage that the man has collected. I will
>> sell them to you at $35 and when the man returns from the city, you
>> can sell them to him for $50 each.'
>>
>> The villagers rounded up with all their savings and bought all the
>> monkeys.
>>
>> Then they never saw the man nor his assistant ever again; only
>> monkeys everywhere!
>>
>> Now you have a better understanding of how the stock market works.

 

[nyrussell]

Heh, real money isn't being lost...it was all based on credit.


Keep going down-----needs more jumpers.

Credit? Hmmmm, tell that to the retiree's from GM. or how about those who spent good money.

Krush, you do need to study more, open mouth less.