Government Bailout

[004Gunner]

Well, it's finished. I can't say that I really expected it to not go through. I'm just disappointed that I was right and our government has become insultingly transparent while trying to give the impression that it is still "of the people".

 

[Elusive]

I couldn't be happier we passed a bill that gives tax breaks to race track owners........seriously WTF?

 

[CJ3Flyr]

I ma sitll havng trouble seaing weell enuff to typ. My eyes wre ingerd as a rezult of my hed explodin aftr I herd it pasd....

I can't f-ing believe the traitorous bas****s!

And how well is their stuff working? The market did great when it was defeated and tanked when it passed, thanks guys.

 

[rook]

I ma sitll havng trouble seaing weell enuff to typ. My eyes wre ingerd as a rezult of my hed explodin aftr I herd it pasd....

I can't f-ing believe the traitorous bas****s!

And how well is their stuff working? The market did great when it was defeated and tanked when it passed, thanks guys.

I think we all knew a bailout was coming. Too much pressure from BIG banks to keep the credit markets open. The whole ordeal is sickening, there seems to be no winner. Banks are writing off tremendous losses. People are losing their homes savings, jobs and unemployment is on the rise. Towns are seeing property values drop, losses in tax revenue, foreclosures neighbors watch their equity drop.

The banking business has become hyper competitive. The mortgage credit crisis is one (read: trillion $) example of how it can come crashing down when competition fuels less than rational decisions to be made. It used to be a lengthy process to get a mortgage, but it got too easy lately. Couple that with corruption all the way up the ladder and you reach the financial times of 2008. We will have to survive Q4 2008 as well as all of 2009 to see ourselves out of the majority of this ordeal. In 2010 we may be hit with a final wave, those with 5-year arms, of which a lot were sold in 2005, will begin to adjust.

Just read this article in the WSJ which outlines how the gov't fanned the flames on the housing market as well. Its surprising we are not in the second great depression.

 

[MikesToy]

i checked my 401k and i lost a lot.

 

[CJ3Flyr]

I think we all knew a bailout was coming. Too much pressure from BIG banks to keep the credit markets open. The whole ordeal is sickening, there seems to be no winner.

Couple that with corruption all the way up the ladder and you reach the financial times of 2008.

...were sold in 2005, will begin to adjust.

Just read this article in the WSJ which outlines how the gov't fanned the flames on the housing market as well. Its surprising we are not in the second great depression.

1) I know, the people specifically engaged and requested they didn't do it and they did. They favored the pitch of the lobbyists rather than us.

2) :upset: No kidding!

3) That is good news, I guess that should be the last of the major wave of those loans. That's a good point that I haven't focused on.

4) Good article that adds some perspective, thanks. If anything though it justs frustrates me more because the causes are so well known...

:cheers:

 

[Hayn4R]

yes, i agree that this is a terrible mess brought on my greed and greed alone.

I did not support the bailout because when is enough, enough. What are we to do the next time around, keep bailing. You can only bail for so long. I really wanted to see the market correct itself.

It is so funny how W.Bush came on the news and urged America to help encourage the bailout because if we didnt, we would be in a worse place. The irony is so thick, I could cut it with dental floss.

It is because of you Mr. W. Bush that we are in this mess to begin with. You and your Haliburtant Oil Tycoons all need to die for your sins against humanity.

When will our Congress grow a set of balls and start impeaching idiots who should be sifting cow shit for a living.

People talk about the inexperience of Obama, but even after 8 years in office...what experience does W.Bush have? Shit someone needs to take his ass out...

I am stopping because my keyboard is burning...

 

[004Gunner]

My IRA statement just came in. I am losing significantly more money than what I put in each month. Don't remind about the rest of my investments. F*** it, it's time to play the Lotto. And W. urging Americans that the bill must be passed? Everyone that is someone within economics said that the move was far too drastic and overlooked several, more practical options. Ah, what do they know, Nobel prize winners are out of touch with reality!

 

[Uneek]

My portforlio is down about 25%. In it for the long haul, I'll regain my original investment over time. The bill passed, look at how the market responded today after the bill passed. Hmm, shall we bail it out again? The world economy is slowing down, the Russian stock market shut down twice and closed 20% lower. I say the market will dip below 9000 for how long I don't know. People at work and friends says it won't go less than 10k. I don't think we're at the bottom yet, but quite close.

 

[rook]

well 004 Gunner, we have an answer... one word $hitty... a large portion of wealth in the country just circled the drain

I changed all future 401k contributions to stable asset funds... if the market fluctuates, the fund will remain stable, but it doesn't yield high returns (or losses). I can then re-allocate when the time is right.

 

[Jeff Kleb]

Ironically, right now could be a "buying" opportunity because of the market being down. Sure, your 'net worth' is lower now than it should be; but let dollar-cost averaging work for you.

Invest the same amount of money at the same intervals you have been doing; i.e., contributing say $50 per week to your IRA or 401(k) plan's mutual fund(s). While the price is down, you get more shares for the same cash investment. This makes the potential gain larger in the future - particularly in the long term.

Suppose you buy 10 shares of Acme Mutual Fund #12 at $20 per share. That would be a cost of $200. If the price dropped by 50 percent in a poor market, then that same $200 contribution/investment is going to get you 20 shares instead of ten. Conversely, a higher market price would mean that your same dollar amount would get you fewer shares.

Simplistic? Obviously! That being said, a down market is indeed an opportunity for those of us who have quite some time left before we reach retirement. The market & the Dow will eventually rebound to higher than what it is now - even if it doesn't go back up over 11,000. If you are somewhat pessimistic (and with good reason when you look at how our gub'ment is screwing us as taxpayers) about the future, consider investing in a mutual fund that deals with gold or other precious metals.

Things may sort of suck right now, but we are the USA and we shall overcome this bump in the road. Did everyone think that the market always goes up and never down?
:bash:

It was once said to me that the percentage of money you have invested in stocks should be equal to 100 minus your age. For instance, those who are 40 years old should have 60 percent of their money in stocks (100 - 40). A kid who is only twenty should have 80 percent in stock, etc., etc.; particularly because younger people have the advantage of being able to "ride out" market disruptions more easily than people close to retirement age.

Okay, now back to reality.
:bigok:

 

[rook]

Ironically, right now could be a "buying" opportunity because of the market being down. Sure, your 'net worth' is lower now than it should be; but let dollar-cost averaging work for you.

agreed, but you need to control when the purchases are made... start in something stable. trade to something else when the price is right.