RE: Northern Trust, they are the people I receive my pension check from each month. How will, or will all this turmoil effect my money? Will it more depend on who and how the pension is managed or does Northern Trust do this for my company? How can I discover what resides in my company's pension fund? What rights do I have to dig into the numbers and find out?
Swedes lent out 25% of GDP to Eastern European bubble markets. Sweden is my dark horse candidate for a shock collapse. They were too arrogant to join the euro and clung to their precious krona... this vanity and sinful pride may now force them to beg humbly help from Finland!!
Yup. Chatter about Sweden has been increasing. Definitely in the background to the Baltics, though. They'll have a bullseye on their backs soon enough.
Anyone who thinks that they are entitled to their pension, social security or medicare are going to be very upset. My advice to retired people is to try to get a job soon.
HAS THE WHOLE WORLD GONE CRAZY? AM
I THE ONLY ONE HERE WHO GIVES A SHIT ABOUT THE RULES? MARK IT ZERO!
This is what I thought of last night. It has holes in it large enough to drive a aircraft carrier through. It is mostly a rehash also.
1st stage
Specific companies fail
Individual stock drops
2nd stage
Industry connected to specific companies fail
Individual bank/company failure
Stock market as a tracking device
3rd stage
Entire Industry fails
Bank/company bailouts
Stock market as a tracking device
Bond Market
Interest rates
4th stage
Related industries fail
More bailouts - accelarated layoffs
Stock market as a tracking device
Bond Market
Interest Rates
5th stage
Country begins to have problems or fail
All of the above
Currency flucuations
By the time you hit Stage 4, since everyone is linked by T1 lines, people have begin liquidating, gambling, and running in ernest. At stage 5 the currency swings begin to reflect this in the increased volatility. Capital flight? Bets on a global scale over safe haven. Liquidations and movements of assets.
The currency rates and changes are the equivalent of a nations stockmarket. Someone far smarter than me can probably read these and see sign and potents of things to come?
interesting conversation with John Kenneth Galbraiths son, a fine economist and historian in his own right
BILL MOYERS: With his ideological blinders stripped away by reality, Alan Greenspan might well do penance by curling up this weekend not with THE FOUNTAINHEAD and ATLAS SHRUGGED but with James K. Galbraith's new book THE PREDATOR STATE: HOW CONSERVATIVES ABANDONED THE FREE MARKET AND WHY LIBERALS SHOULD TOO. In it, the author asks: "Why not build a new economic policy based on what is really happening?" ...
BILL MOYERS: What scares you most right now?
JAMES GALBRAITH: Well, a week ago or two weeks ago I would have said the possibility that [McCain economic advisor] Phil Gramm might become Secretary of the Treasury. ...Gramm himself was the architect, a deep architect of the speculative markets that have just collapsed. ...
BILL MOYERS: You call your book THE PREDATOR STATE, what do you mean predator?
JAMES GALBRAITH: What I mean is the people who took over the government were not interested in reducing the government and having a small government, the conservative principle. They were interested in using these great institutions for private benefit, to place them in the control of their friends and to put them to the use of their clients. They wanted to privatize Social Security. They created a Medicare drug benefit in such a way as to create the maximum profit for pharmaceutical companies.
They used trade agreements to extend patent protections for various interests or to promote the expansion of the corporate agriculture's markets in the third world. A whole range of things that were basically political and clientelistic. That's the predator state.
BILL MOYERS: You call it a corporate republic.
JAMES GALBRAITH: It is a corporate republic.
BILL MOYERS: Which means that the purpose of government is to divert funds from the public sector to the private sector?
JAMES GALBRAITH: I think it's very clear. They also turned over the regulatory apparatus to the regulated industries. They turned over the henhouse to the foxes in every single case. And that is the source of the decline in, the abandonment of environmental responsibility, the source of the collapse of consumer protection, and the source of the collapse of the financial system, all trace back to a common root, which is the failure to maintain a public sector that works in the public interest, that provides discipline and standards, a framework within which the private sector can operate and compete. That's been abandoned.
BILL MOYERS: We saw what Alan Greenspan said yesterday. But did you see what the chairman of the Securities and Exchange Commission, Christopher Cox, said? I mean, it was one of the great recantings in modern American history. Quote, "The last six months have made it abundantly clear that voluntary regulation does not work."
Crewman writes:
Anyone who thinks that they are entitled to their pension, social security or medicare are going to be very upset. My advice to retired people is to try to get a job soon.
Okay, personal note I am 56, today. I took the half off bargain at 55 because I know what you say is true. Better a dollar today than wait for a dollar tomorrow. And I am working. My wife insists on it. She's a large, angry woman and I'm afraid of her. Meanwhile, I wouldn't object to pricking those assholes by digging into the numbers. Still asking questions from above. I know it's hard to believe that the Volker doesn't know something. I readily admit that I don't.
Northern Trust is just the asset manager of your defined benefit plan. They hold the money in trust, invest it, and pay out benefits.
Their own solvency has nothing to do with your benefits, as the money is held in trust.
You should look at your DB plan's Summary Plan Description to see how well funded it is. The plan's funded ratio is the present value of future liabilities divided by the fair market value of assets. A ratio above about 90% is okay.
And we're still allow these companies to pay huge dividends? Paulson and mini-me are complete idiots. These institutions balance sheets need money! What clowns. Please, lets get rid of all of them.
The biggest morning disclosure was Capital One Financial Corp.'s $3.55 billion sale of preferred stock and warrants to the Treasury Department,...
Since the obvious "who's in your wallet" is already taken a serious comment.
I never understood their business model. They charge usurious rates to people who shouldn't be granted signature credit in the first place. The ultimate adverse selection insurance model I can imagine. Thus their expensive advertising campaigns to replenish the increasingly small base of clients who will pay and won't move to more reasonable rates.
Since "we are all investors now" I want a say in where I invest. I don't want Capital One in my investment portfolio if for nothing other than it is a bad investment but also because it is an attractive nuisance for bad consumer credit uses.
Kill me now. I'm forced to be in the market waiting for my grandfather's brokerage to get all paperwork from my relatives in order to transfer his stock into my account. This has begun to impact my mental status. I have no idea what is taking my relatives so long to send paperwork or; nor would I wonder why anyone would not send important paperwork via USPS express (why did they send my information with a ****ing self-addressed standard postage!). This type of paperwork should be expedited via Express or even faxed directly.
Also; was told this morning that process would take 3-4 days until I'm able to sell once paperwork is in. Now its clear we were all dumbasses in deciding to distribute stocks to each other instead of just selling and dividing the cash. I should've talked with them months ago but one relative still believed "market full of irrational fear" as of 2 weeks ago.
So seriously; kill me now... it'll probably take another 2 weeks if we decide to hand out cash; but I wanted to be out by Wednesday!
All I get to say is wheeeeeee! Financial planners a bunch of effin' morons... is everyone gonna admit they are "shocked"!?
OK Homedad you got my curiosity piqued. What's with the Danes? Is this like how I fell about Notre Damers? Ya know, ya have work with one completely arrogant buffoon and ya associate the whole lot of Notre Dame alumni with the one idiot.
In a nutshell, the perceived analysis of the topic in question has exacerbated attempts previously run their course through lack of intelligible knowledge in the said field. If the financial system encounters proper influx regarding the initial statements of a corrective nature, then all parties will withstand the inevitable rise in the profitable margin of investors monies.
Nemo,
I have a regular brokerage account but no options. Also: I'm poor. I don't have any money. Is it really possible to protect a 6-figure position with 4-figure shorts? I don't think so.
I'm sure my position has a ton of people laughing at me... I'm the new Sebastian! I really was hopeful prior to talking with brokerage that we could get this all done today, but now... grrrrrrrrrrr!
It should be apparent that there is no guarantees on any financial asset. I discovered that the cash value of my life insurance is only guaranteed by a state fund. Under funded of course. So I took out a loan against the cash value at 2% interest and found a safe CD. Feel better about that.
YLSP - I was in your shoes earlier this year. To top it off ALL beneficiaries agreed to sell ALL ASSETS (now!) and hold in cash to wait for distribution. Well, the trustee waited FOUR WEEKS to sell and my grandmother's estate saw a six figure loss in the interim. Lawsuit pending.
JAMES GALBRAITH: What I mean is the people who took over the government were not interested in reducing the government and having a small government, the conservative principle. They were interested in using these great institutions for private benefit, to place them in the control of their friends and to put them to the use of their clients...
JAMES GALBRAITH: It is a corporate republic.
BILL MOYERS: Which means that the purpose of government is to divert funds from the public sector to the private sector?
JAMES GALBRAITH: I think it's very clear. They also turned over the regulatory apparatus to the regulated industries. They turned over the henhouse to the foxes in every single case...
Did the same with my mother-in-law's estate. Wells Fargo screwed up the paper work and we lost big. Thought about a lawsuit. But, they are broke already, so what would we get. I understand your frustration.
Volker the Viking, My beautiful, yet angry, wife wants to know why you're fooling around on this site instead of working--please give me an excuse--she wants me to unretire also.
Tom Stone writes:
Ac have you ever heard a country being called Fascist in a nicer way? "Corporate Republic"? Shit.
Yes, but the upside is that it's very civilized and legal robbery. No machete genocides, Lebanese urban fragmentation warfare, or forced marches into the countryside to work the land.
YLSP,
I've a scottrade account. They were pretty quick when i asked my account to have options capability. One night, I drove to one of their branch office and slipped my application under the front door. Well that's what they asked me to do.
You just want to buy insurance against the stock collapsing; that is precisely what puts are...
Ugh, this is like the worst time ever to buy puts. What's the VIX at lately, a few hundred or so?
It's too late to un-do this problem. Might as well keep the estate in stocks for now. They could go down more, you never know, but long term the market overall is reasonably priced here.
Inventory is down, which is positive. Of course, the purchases today are still probably speculators who will dump it back on the market in a year, inflating existing home inventory. And of course, there is the huge shadow inventory problem.
I'm going to need my neck examined for whiplash trying to follow the markets these days. I also need my head examined for following sites like this one.
"Anyone who thinks that they are entitled to their pension, social security or medicare are going to be very upset. My advice to retired people is to try to get a job soon."
My advise - get a gun and take it back from the bankers and brokers that took it from you,
Well, I really am cash poor right now out of necessity. All this talk about "big crash", "fast crash" "circuit breaker day" and most importantly "Hedge Fund Implosion Week!" are spooking me out. I really don't think that Hank would allow that to tank the markets, since the Bailout Bill was specifically passed to "do anything that brings stability to the market".
This is insane and I spend every waking minute fearing that the big crash does occur and we see my grandfather's estate wiped out.
Here is what I'm watching based on top 10 holdings. He's heavily invested into energy.
Exxon(25%)
FL Tax Free Bonds (8%)
FPL Corp (7%) - Florida Power
BUD (7%)
FKINX (Franklin Mutual Fund) (6%)
Walmart (6%)
Southern Company (5%)
Kraft, Pizer, Altria, GE (2%)
Seems "stable enough"; only bank he has exposure to is C, along with the GE I suppose. But who the heck knows if it is GD-II!
Oh to go onto CNBC and call bottom right now! "There are some really great values out there! Once in a lifetime deals!"
My advise - get a gun and take it back from the bankers and brokers that took it from you,
All Fall Down | 10.27.08 - 10:19 am | #
Wasn't there a movie about this--with George Burns, Art Carney, and Lee Strasburg--I remember a scene with them on a park bench--best ensemble acting I've ever seen.
I don't think it is too surprising. Sales volume will bottom out and begin to rebound while prices continue to fall for some time yet. The next question is when will the price bottom be?
I'm a bit pissed that I'm now a shareholder in COF.
You and me both, Comrade. But I take solace in the fact that so many bank shareholders will continue to receive dividends. I'm happy to do that for them, yep.
blackhat: "Yes, but the upside is that it's very civilized and legal robbery. No machete genocides, Lebanese urban fragmentation warfare, or forced marches into the countryside to work the land.
safe -
Understand sarcasm a little better.
The numbers were awful - take out the bogus seasonal adjustments which mean nothing in this market and the numbers show a continuation of the free fall.
So stop with the "wrong" crap. You sound like a tool.
Noted. I'm a bit sensitive I suppose on housing numbers--followed this market for going on a decade and the amount of misinformation recently is astounding.
I agree with Nemo. These things always take longer than planned (little unexpected things that constantly delay). Just hedge with options. It is the smart thing to do and will stop your losses immediately.
Popeye,
Thanks--the acting was so great--each actor knew how to talk with his body, the movement of one finger could say a thousand words. Each owned the camera--and fought over it. Gonna have to rent it and watch with my older eyes.
YSLP, if you've never bought an option before, now is not the time to start, especially to try to cover six figures' worth of stocks.
That list you gave was a nice selection of things I'd be happy to own at today's prices. My advice is to wait out this panic/forced selling, as painful as it may be short term. If you need some cash, lighten up on the stocks after a rebound, but don't panic-sell at today's prices.
I'm neither large nor angry, and the argument I made for Volker to unretire is simple: you either get to work, or I quit working, too, in which case we'll both be eating cat food. Of course, I don't have a "real" job; I'm a cheerleader for the life of the mind.
It may still come to the cat food scenario; I have sampled various brands, and 9Lives ain't bad at all. Nothing that a little hot sauce can't fix, anyhoo.
As far as the financial system is concerned: write it all off; there is no safe haven; the insane search for a place to land...is, well, insane. The tank is on empty, all engines are on fire, and the captain has jettisoned with the only parachute left.
Enjoy the descend; the crash will suck in a big way...
I'm surprised that people still own common shares. What keeps you in these? Why not trade options?..increased leverage (bad if you don't know what you are doing...great if you do). Having said that I see why most do not...especially lately since options spreads are ridiculous. Stocks move 5% and bids stay static.
IMHO,
This is a bear blog. Bulls would like that stock group a lot. BUD should do well in a recession/depression and most of the others are about as safe as it gets. example, Exxon, since it costs you zero should be profitable going forward, dividend of 40 cents a share is pretty nice when it's free money. No one is going to stop using gasoline in the near term.
For what it's worth, I'd study what you get when you get it and choose what to sell on a bounce and what to hold on to for ten or twenty years as an inflation hedge. It's been said, but the cost of options in this panic may be greater than the benefit.
Along with the spreads as you mentioned, the absolute level of VIX takes some of the leverage aspect away.
Also, with options, you not only have to pick the direction right, you have to pick the time right as well.
That being said, in the past 1.5 years, I've concentrated mostly on options, and I usually try to keep them six to nine months out, so that the theta doesn't kill me.
Exactly what I do.....doing about 200% on each set. It's utterly boring watching the market move up and down and the spreads widen further and further. Almost as if "they know"....
BTW I've been trying to get '10's of some sets but the prices are too outrageous and I don't chase them. Had orders in for COF Jan '10 puts last week but never filled.....now I see we own a portion of them.
homedad, the "spacious comfy" will be deployed, but I fear it won't register positively.
Hope also someday to see in my house the understanding of your wife regarding wealth preservation measures, and the time it takes to think about and deploy them.
That's the real treasure of your wife as I see it from your posts. a real partner in post measures.
mock turtle - ebay prices are 15% over spot gold minimum and 30% over spot silver minimum.
I've only been following the Silver market since I don't have enough monthly savings to invest in physical gold--or platinum for that matter.
I cannot find silver bullion anywhere locally (City, County, Area of State), and I have only found silver bullion on eBay for ~18 + s/h (Maybe). That puts the "real" spot market--for me anyway--for silver at least 2x spot. I can find American Silver Eagles, Canadian Silver Maple Leafs (sic?) locally for 18 which is still 2x spot (as of 9:47a CDT)
If you know where I can find silver bullion for spot + 30%, please let me know and I'll give you the +30% for a finder's fee...
Thanks for the advice in this thread. I'm already at the end of the "these things take time" phase. Everyone should have their paperwork into brokerage. I'm going to pester everyone until it is done, mostly the brokerage.
I know my grandfather had a nice blue-chip portfolio but I still doubt we are at "bottom". Unless Congress does something like cut the Capital Gains rate, what's going to make people invest? It seems like they've taken measures to force people into cash.
A year ago or so on these boards someone said, "don't be leveraged". Well I have worked to de-lever my personal finances (still have a bit to go). The problem is that I think every company in the world is leveraged! Hence we are going through "the great unwind". What's the upside to stocks? I don't see it right now. Heck I know people who said "I'm buying at 10k; 9k; I'm buying at 8k" and when those levels got passed they stopped, thought about and said, "Why do I want to buy?"
I wanted to take sell his stocks and go heavy into PMs and have a bit to play around with some "play the market" type of funds... although it seems like the big move already happened from 11k down to 8k.
We also will need a new car in the near future, and have two children. It's nice to have the cash on-hand to send them to pre-school.
I agree things look pretty rough for stocks. I'm toying with the notion that the forced selling that results from delevering has caused the market to fall further than can be explained by even a deep recession - and that the market could recover some if the credit crisis were capped.
JAMES GALBRAITH: I think it's very clear. They also turned over the regulatory apparatus to the regulated industries. They turned over the henhouse to the foxes in every single case...
Not so with banking (I can hear you laughing).
We have the regulators in here constantly. I actually see this as a form of job security for my position responsibilities (but, I have removed my rose colored glasses and smashed them on the ground - a move I believe is consistent with being a CR reader).
A little OT but something I've been wondering about for a time now.
Back in the day few of us had interweb access. I was around for the '87 smackdown and we had to rely on MSM for any news. Actually I did have Internet then (expensive Compuserve queries), but nothing even close to the wealth of news and opinion now found.
Now that all this information and opinion sharing is available, what effect does this have on the average Joe's decisions? We are in uncharted territory market-wise, but also in the amount of available info and opinion. Seems that with all of the people like CR out there digging and digging that the crooks are having a harder time pulling their scams or hiding their misdeeds....at least hiding from those that care to investigate.
Sorry if this is too incoherent. Had a tough weekend.
(OT: The ticker tape won't be as crowded when these former hi-fliers enter single digit territory:
C 12, UBS 13, BCS 12, MS 15, SCHW 15, AMTD 10, DELL 11, ORCL 16, NOK 14, GE 17, PFE 16, BMY 17, SGP 13, JCP 18 and hundreds more. Lots of good buys out there down 50% or more, and plenty of time to the bottom).
If you know where I can find silver bullion for spot + 30%, please let me know and I'll give you the +30% for a finder's fee...
yagij | 10.27.08 - 10:53 am |
"LewRockwell.com winner of Ron Paul's first Freedom Website Award highlights the news and commentary that Lew finds important, or simply interesting. It is therefore unapologetically idiosyncratic. Given this, the views expressed in the articles do not necessarily represent those of Lew Rockwell."
Regional banks are on the tit now...eventually the money will run out. What happens to preferred shares where the company becomes bankrupt? I hope that fire sale proceeds go to preferred shared first.
Sue, are you around? Did you read my post yesterday?
"If you know where I can find silver bullion for spot + 30%, please let me know and I'll give you the +30% for a finder's fee...
yagij | 10.27.08 - 10:53 am"
Actually, you can buy 1000 oz silver bars from Tulving for maybe less than 4% over spot.
Thank you for the link.
I will now clarify my position:
Where can I get silver for Spot + 30% when I'm buying less than 100 oz? I understand that buying bulk provides a discount, but I currently can't afford buying 500 oz. at a time...
OK so they have more capital. Does this mean they will do more lending or will they just hoard the money? Anna Schwartz (sp?), Friedman's co-author, complained that banks were flush with cash, but were just hoarding it.
Unfortunately, the spread of new media also means the spread of investo-porn, typically of the bullish variety. There's a lot of craps out there on the intertubes. There's great stuff too, but you have to (a) look for it or stumble across it and (b) think.
"Now that all this information and opinion sharing is available, what effect does this have on the average Joe's decisions?"
Very little, I think.
The people who sought information before, were able to get it. The rest followed the herd.
We are drowning in information, and to tease out useful information becomes ever harder.
The web bot development is a good idea, in theory, but in praxis, all the outliers break any useful statistical data gathering tool. Maybe with a "new and improved" algorithm ...
This is news?
fist shaking at Nemo
Maybe, Nemo. I hadn't seen mention of Northern Trust amid recent tales of woe 'til now. Probably I just missed it.
RE: Northern Trust, they are the people I receive my pension check from each month. How will, or will all this turmoil effect my money? Will it more depend on who and how the pension is managed or does Northern Trust do this for my company? How can I discover what resides in my company's pension fund? What rights do I have to dig into the numbers and find out?
There goes a quick $16B. I wonder how much more they'll need next quarter.
should I close my short on FITB ?
I guess Anonymouse's prediction of a catastrophe this weekend didn't come to pass...
burnside --
Who says this represents "woe"? The Treasury money is a great way to finance acquisitions and bonuses...
Massive market distortion. If you don't take free gov't money you implode.
Nostrovia,
Just imagine the mainstream media mantra "This is a good thing", "The plan is working!!!" Markets will rally.
My daughter has a thriving babysitting business. I'll have her model her cash flow, form an LLC and we'll sell preferred for $1.1Million.
They'll never know that it's gone.
Did Citi, JPM, GS sell prefferds as well?
Nemo, it sounds odd to say this in the present environment, but it's just not their style. Or hasn't been, anyway.
The Swedish banks have gone wobbly; Carnegie was forced to beg for a 100 million euro shock injection:
"Kukaan ei tiedä, miten paha Carnegien tilanne on"
- Arvopaperi
Swedbank is in trouble.
Swedes lent out 25% of GDP to Eastern European bubble markets. Sweden is my dark horse candidate for a shock collapse. They were too arrogant to join the euro and clung to their precious krona... this vanity and sinful pride may now force them to beg humbly help from Finland!!
Not that I cherish this.
owhere to run
nowhere to hide
Funds will be 'better' used if they are diverted towards PPT.
Remember a recent Apple ad where Vista reshuffles its budget?
Yup. Chatter about Sweden has been increasing. Definitely in the background to the Baltics, though. They'll have a bullseye on their backs soon enough.
Here's to the krona!
To quote the poet, Some men rob you with a six gun, others with a pen.
uh, why does Capital One need all that cash? I thought credit card risk was contained!
/Snark
What's in your wallet?
Taxpayer money!
Anyone who thinks that they are entitled to their pension, social security or medicare are going to be very upset. My advice to retired people is to try to get a job soon.
HAS THE WHOLE WORLD GONE CRAZY? AM
I THE ONLY ONE HERE WHO GIVES A SHIT ABOUT THE RULES? MARK IT ZERO!
This is what I thought of last night. It has holes in it large enough to drive a aircraft carrier through. It is mostly a rehash also.
1st stage
Specific companies fail
Individual stock drops
2nd stage
Industry connected to specific companies fail
Individual bank/company failure
Stock market as a tracking device
3rd stage
Entire Industry fails
Bank/company bailouts
Stock market as a tracking device
Bond Market
Interest rates
4th stage
Related industries fail
More bailouts - accelarated layoffs
Stock market as a tracking device
Bond Market
Interest Rates
5th stage
Country begins to have problems or fail
All of the above
Currency flucuations
By the time you hit Stage 4, since everyone is linked by T1 lines, people have begin liquidating, gambling, and running in ernest. At stage 5 the currency swings begin to reflect this in the increased volatility. Capital flight? Bets on a global scale over safe haven. Liquidations and movements of assets.
The currency rates and changes are the equivalent of a nations stockmarket. Someone far smarter than me can probably read these and see sign and potents of things to come?
uh, why does Capital One need all that cash? I thought credit card risk was contained!
/Snark
Comrade Gavshire Hathaway
It is, in a nucular wessel.
Austria's in the poo-poo too. Massive exposure to Hungary, Ukraine, Serbia.
Have you tried new Credit Anstalt? It's delish. Same great flavour, now with 85% more EPIC FAIL.
So does this mean that my Capital One card is a FedCard(tm)? Is my credit limit now infinite? Do I have to pay any of it back?
The new FedCard(tm): Graced with a picture of a pony; every $100 spent earns a free lunch.
its all over but the cryin
interesting conversation with John Kenneth Galbraiths son, a fine economist and historian in his own right
BILL MOYERS: With his ideological blinders stripped away by reality, Alan Greenspan might well do penance by curling up this weekend not with THE FOUNTAINHEAD and ATLAS SHRUGGED but with James K. Galbraith's new book THE PREDATOR STATE: HOW CONSERVATIVES ABANDONED THE FREE MARKET AND WHY LIBERALS SHOULD TOO. In it, the author asks: "Why not build a new economic policy based on what is really happening?" ...
BILL MOYERS: What scares you most right now?
JAMES GALBRAITH: Well, a week ago or two weeks ago I would have said the possibility that [McCain economic advisor] Phil Gramm might become Secretary of the Treasury. ...Gramm himself was the architect, a deep architect of the speculative markets that have just collapsed. ...
BILL MOYERS: You call your book THE PREDATOR STATE, what do you mean predator?
JAMES GALBRAITH: What I mean is the people who took over the government were not interested in reducing the government and having a small government, the conservative principle. They were interested in using these great institutions for private benefit, to place them in the control of their friends and to put them to the use of their clients. They wanted to privatize Social Security. They created a Medicare drug benefit in such a way as to create the maximum profit for pharmaceutical companies.
They used trade agreements to extend patent protections for various interests or to promote the expansion of the corporate agriculture's markets in the third world. A whole range of things that were basically political and clientelistic. That's the predator state.
BILL MOYERS: You call it a corporate republic.
JAMES GALBRAITH: It is a corporate republic.
BILL MOYERS: Which means that the purpose of government is to divert funds from the public sector to the private sector?
JAMES GALBRAITH: I think it's very clear. They also turned over the regulatory apparatus to the regulated industries. They turned over the henhouse to the foxes in every single case. And that is the source of the decline in, the abandonment of environmental responsibility, the source of the collapse of consumer protection, and the source of the collapse of the financial system, all trace back to a common root, which is the failure to maintain a public sector that works in the public interest, that provides discipline and standards, a framework within which the private sector can operate and compete. That's been abandoned.
BILL MOYERS: We saw what Alan Greenspan said yesterday. But did you see what the chairman of the Securities and Exchange Commission, Christopher Cox, said? I mean, it was one of the great recantings in modern American history. Quote, "The last six months have made it abundantly clear that voluntary regulation does not work."
hat tip (U of O prof steve hsu blog)
Information Processing
Re: Verizon
How the hell is VZ going to be able to service all of the Fios debt in this environment?
karelian:
Do I detect a bit of nordic distrust?
If you've got to be upset with somebody, it should be those nasty Danes.
I hate them.
Passionately.
Ok, fine print. They sell preferreds and warrants. Does this mean lights out for common dividends?
Crewman writes:
Anyone who thinks that they are entitled to their pension, social security or medicare are going to be very upset. My advice to retired people is to try to get a job soon.
Okay, personal note I am 56, today. I took the half off bargain at 55 because I know what you say is true. Better a dollar today than wait for a dollar tomorrow. And I am working. My wife insists on it. She's a large, angry woman and I'm afraid of her. Meanwhile, I wouldn't object to pricking those assholes by digging into the numbers. Still asking questions from above. I know it's hard to believe that the Volker doesn't know something. I readily admit that I don't.
CENTRAL COMMAND TO GEN. P.B. FULDA
PREPARE FOR ORDER TO INVADE UK.
FIELD MARSHALL SCHLESWIG-HOLSTEIN.
CENTRAL COMMAND
OT but what do they call the Hungarian market?
France is DAX, Japan is Nikkei.
Hungary = Goulash?
homedad43 writes:
OT but what do they call the Hungarian market?
FOOKEDX
Northern Trust is just the asset manager of your defined benefit plan. They hold the money in trust, invest it, and pay out benefits.
Their own solvency has nothing to do with your benefits, as the money is held in trust.
You should look at your DB plan's Summary Plan Description to see how well funded it is. The plan's funded ratio is the present value of future liabilities divided by the fair market value of assets. A ratio above about 90% is okay.
thanx, going for my shovel now
It's the Budapest Stock Exchange, BSE, aka Bovine Spongiform Encephalopathy or mad cow.
Volker the Viking:
Happy birthday!
"sell preferred stock and warrants to the government"
Is this the new "brown paper wrapper" confessional?
And we're still allow these companies to pay huge dividends? Paulson and mini-me are complete idiots. These institutions balance sheets need money! What clowns. Please, lets get rid of all of them.
They are still following the Wall Street etiquette - banks shall and must pay dividends.
Gardens of Versailles are being stormed by deranged fishwives and Hank is still following the intricate choreography of the minuette.
homedad43, what's wrong with Danes? Just curious; seems like an innocuous group from here...
One of capital one's credit cards ad campaign has hell freezing over.. Who is laughing now?
Diane Garnick.
Woof!
Nostrovia,
The biggest morning disclosure was Capital One Financial Corp.'s $3.55 billion sale of preferred stock and warrants to the Treasury Department,...
Since the obvious "who's in your wallet" is already taken a serious comment.
I never understood their business model. They charge usurious rates to people who shouldn't be granted signature credit in the first place. The ultimate adverse selection insurance model I can imagine. Thus their expensive advertising campaigns to replenish the increasingly small base of clients who will pay and won't move to more reasonable rates.
Since "we are all investors now" I want a say in where I invest. I don't want Capital One in my investment portfolio if for nothing other than it is a bad investment but also because it is an attractive nuisance for bad consumer credit uses.
Robotraders out in force today. Look for 1-2% gains in the indices.
safe_as_apartments writes:
Robotraders out in force today. Look for 1-2% gains in the indices.
I see a porpoise with a potfolio.
Kill me now. I'm forced to be in the market waiting for my grandfather's brokerage to get all paperwork from my relatives in order to transfer his stock into my account. This has begun to impact my mental status. I have no idea what is taking my relatives so long to send paperwork or; nor would I wonder why anyone would not send important paperwork via USPS express (why did they send my information with a ****ing self-addressed standard postage!). This type of paperwork should be expedited via Express or even faxed directly.
Also; was told this morning that process would take 3-4 days until I'm able to sell once paperwork is in. Now its clear we were all dumbasses in deciding to distribute stocks to each other instead of just selling and dividing the cash. I should've talked with them months ago but one relative still believed "market full of irrational fear" as of 2 weeks ago.
So seriously; kill me now... it'll probably take another 2 weeks if we decide to hand out cash; but I wanted to be out by Wednesday!
All I get to say is wheeeeeee! Financial planners a bunch of effin' morons... is everyone gonna admit they are "shocked"!?
OK Homedad you got my curiosity piqued. What's with the Danes? Is this like how I fell about Notre Damers? Ya know, ya have work with one completely arrogant buffoon and ya associate the whole lot of Notre Dame alumni with the one idiot.
YLSP --
Why not just short the stocks in a regular brokerage account now? Long+short = no net position.
MBNA deserves to be nationalized.
how I fell about should be how I feel
sheesh
In a nutshell, the perceived analysis of the topic in question has exacerbated attempts previously run their course through lack of intelligible knowledge in the said field. If the financial system encounters proper influx regarding the initial statements of a corrective nature, then all parties will withstand the inevitable rise in the profitable margin of investors monies.
Nemo,
I have a regular brokerage account but no options. Also: I'm poor. I don't have any money. Is it really possible to protect a 6-figure position with 4-figure shorts? I don't think so.
I'm sure my position has a ton of people laughing at me... I'm the new Sebastian! I really was hopeful prior to talking with brokerage that we could get this all done today, but now... grrrrrrrrrrr!
I remember Capital One boast about it's innovative business model. So what gives?
It should be apparent that there is no guarantees on any financial asset. I discovered that the cash value of my life insurance is only guaranteed by a state fund. Under funded of course. So I took out a loan against the cash value at 2% interest and found a safe CD. Feel better about that.
Hank has reprogrammed the robotraders this weekend.
if (PE < 16) then
buy
else
sell buy
YLSP - I was in your shoes earlier this year. To top it off ALL beneficiaries agreed to sell ALL ASSETS (now!) and hold in cash to wait for distribution. Well, the trustee waited FOUR WEEKS to sell and my grandmother's estate saw a six figure loss in the interim. Lawsuit pending.
Northern Trust? How did they get on the list. They're not a commercial bank.
Sear Holding will be next.
Myself and many others have been saying the whole system is insolvent. Seems obvious now. Wall street morphed into a bonus garnering operation.
What a sham.
JAMES GALBRAITH: What I mean is the people who took over the government were not interested in reducing the government and having a small government, the conservative principle. They were interested in using these great institutions for private benefit, to place them in the control of their friends and to put them to the use of their clients...
JAMES GALBRAITH: It is a corporate republic.
BILL MOYERS: Which means that the purpose of government is to divert funds from the public sector to the private sector?
JAMES GALBRAITH: I think it's very clear. They also turned over the regulatory apparatus to the regulated industries. They turned over the henhouse to the foxes in every single case...
YAY!
Somebody else gets it...
YLSP --
No, you cannot hedge a 6-figure long with a 4-figure short.
But you can with options. Who is your broker? Can you not get options trading?
You only need minimal options privileges to buy puts. You should be able to buy puts even in an IRA (I know I can).
You just want to buy insurance against the stock collapsing; that is precisely what puts are...
YLSP --
And you only need the nearest-term puts. The options premium would be minimal.
Seriously, if I were as worried as you sound, I would call my broker and tell him I want to buy puts.
YLSP,
Did the same with my mother-in-law's estate. Wells Fargo screwed up the paper work and we lost big. Thought about a lawsuit. But, they are broke already, so what would we get. I understand your frustration.
Corporate Republic:
Wall street still has a bonus pool this year.
What other proof do you need. We claim to be capitalists, yet we reward failure in an enormous way - CEOs, bankers, money (mis)managers.
End the senseless money creation (inflation). Let people save, invest and take care of themselves.
What a sham.
I have Scotttrade. I don't have an option account. Yargh!
Ac have you ever heard a country being called Fascist in a nicer way? "Corporate Republic"? Shit.
Don't worry... be happy!
Bank run in Kuwait:
Gulf Bank Customers Withdraw Deposits After Losses (Updtate1) - Bloomberg.com
Interesting.
Wow, I can't believe we're green. Who the hell is buying? Even in companies like Capital One?
Speaking of which, I'm a bit pissed that I'm now a shareholder in COF. I would love to see them mired in BK. Talk about a worthless business model.
BILL MOYERS: You call it a corporate republic.
JAMES GALBRAITH: It is a corporate republic.
There. I liked the emphasis better.
Volker the Viking, My beautiful, yet angry, wife wants to know why you're fooling around on this site instead of working--please give me an excuse--she wants me to unretire also.
Green because of jam on the new home sales. Down 33% YoY but up a couple percent from August.
Party like it's 2005!
Tom Stone writes:
Ac have you ever heard a country being called Fascist in a nicer way? "Corporate Republic"? Shit.
Yes, but the upside is that it's very civilized and legal robbery. No machete genocides, Lebanese urban fragmentation warfare, or forced marches into the countryside to work the land.
But, what you said.
YLSP,
I've a scottrade account. They were pretty quick when i asked my account to have options capability. One night, I drove to one of their branch office and slipped my application under the front door. Well that's what they asked me to do.
over at marketwatch a registered commenter tracks precious metals sales for physical delivery taking place on ebay.
he (she) reports prices for gold by way of example that are more than 10% above spot!!
sands8oo's Profile - sands8oo's comments, recommendations, tags and stock picks
We're closing deep red. Just like Japan.
I think the robotraders will save the day.
September new home sales rise 2.7 percent
You just want to buy insurance against the stock collapsing; that is precisely what puts are...
Ugh, this is like the worst time ever to buy puts. What's the VIX at lately, a few hundred or so?
It's too late to un-do this problem. Might as well keep the estate in stocks for now. They could go down more, you never know, but long term the market overall is reasonably priced here.
New home sales rise - big positive surprise. Still awful numbers though - prices down 9+%
Rise 2.7% MoM. Down 33% YoY.
Inventory is down, which is positive. Of course, the purchases today are still probably speculators who will dump it back on the market in a year, inflating existing home inventory. And of course, there is the huge shadow inventory problem.
Volker, you know plenty, and by the way, my 54th birthday was yesterday.
question from the whippersnapper:
When you mentioned "take the half off bargain", is that on pension, SS or what?
My wife is pretty big too...
Ministry of Truth writes:
September new home sales rise 2.7 percent
Ministry of Truth | Homepage | 10.27.08 - 10:14 am | #
Sept new home prices down 10%. That is the problem.
I'm going to need my neck examined for whiplash trying to follow the markets these days. I also need my head examined for following sites like this one.
New home sales rise - big positive surprise. Still awful numbers though - prices down 9+%
Wrong. Consensus was 460,000. Number was 464,000. Not a big surprise at all.
These new home sales jam-jobs are getting pretty weak. A year ago these MoM jammers lasted hours.
"Anyone who thinks that they are entitled to their pension, social security or medicare are going to be very upset. My advice to retired people is to try to get a job soon."
My advise - get a gun and take it back from the bankers and brokers that took it from you,
[I have Scotttrade. I don't have an option account. Yargh!
YLSP ]
Coupla forms and you're good to go.
If the sales are up to investors aren't we just moving the time bomb from one mortgage holder to another? ( after a 10% writedown )
Well, I really am cash poor right now out of necessity. All this talk about "big crash", "fast crash" "circuit breaker day" and most importantly "Hedge Fund Implosion Week!" are spooking me out. I really don't think that Hank would allow that to tank the markets, since the Bailout Bill was specifically passed to "do anything that brings stability to the market".
This is insane and I spend every waking minute fearing that the big crash does occur and we see my grandfather's estate wiped out.
Here is what I'm watching based on top 10 holdings. He's heavily invested into energy.
Exxon(25%)
FL Tax Free Bonds (8%)
FPL Corp (7%) - Florida Power
BUD (7%)
FKINX (Franklin Mutual Fund) (6%)
Walmart (6%)
Southern Company (5%)
Kraft, Pizer, Altria, GE (2%)
Seems "stable enough"; only bank he has exposure to is C, along with the GE I suppose. But who the heck knows if it is GD-II!
Oh to go onto CNBC and call bottom right now! "There are some really great values out there! Once in a lifetime deals!"
I also need my head examined for following sites like this one.
No, mental illness is all the rage these days. You're right in style.
My advise - get a gun and take it back from the bankers and brokers that took it from you,
All Fall Down | 10.27.08 - 10:19 am | #
Wasn't there a movie about this--with George Burns, Art Carney, and Lee Strasburg--I remember a scene with them on a park bench--best ensemble acting I've ever seen.
New home sales rise - big positive surprise.
I don't think it is too surprising. Sales volume will bottom out and begin to rebound while prices continue to fall for some time yet. The next question is when will the price bottom be?
I'm a bit pissed that I'm now a shareholder in COF.
You and me both, Comrade. But I take solace in the fact that so many bank shareholders will continue to receive dividends. I'm happy to do that for them, yep.
Hey, f--- it, man. Let's go bowling.
mel,
Going in Style - movie review - George Burns, Art Carney, Lee Strasberg | clown ministry | Reviews | Art Carney reviews
mock turtle - ebay prices are 15% over spot gold minimum and 30% over spot silver minimum.
blackhat: "Yes, but the upside is that it's very civilized and legal robbery. No machete genocides, Lebanese urban fragmentation warfare, or forced marches into the countryside to work the land.
But, what you said."
I would add "yet".
My advise - get a gun and take it back from the bankers and brokers that took it from you,
All Fall Down | 10.27.08 - 10:19 am
D-FENS!
(Good movie)
safe -
Understand sarcasm a little better.
The numbers were awful - take out the bogus seasonal adjustments which mean nothing in this market and the numbers show a continuation of the free fall.
So stop with the "wrong" crap. You sound like a tool.
safe -
Understand sarcasm a little better.
Noted. I'm a bit sensitive I suppose on housing numbers--followed this market for going on a decade and the amount of misinformation recently is astounding.
YSLP, why not put some of holdings in a double short index ETF?
When do the October unemployment numbers get posted?
FOR THE RECORD:
I do not hate the Danes.
Never have, never will.
Just a joke.
Karelian sounded a wee bit put off with the Swedes and I thought there was a joke there. Jeez...
Now, for the French...
How many Frenchmen does it take to change a lightbulb?
None, because they can't. Everyone that has tried just stands there and expects the room to revolve around him.
(And no, I don't hate the French either...)
YSLP -
I agree with Nemo. These things always take longer than planned (little unexpected things that constantly delay). Just hedge with options. It is the smart thing to do and will stop your losses immediately.
Is it me, or does someone/group/hivemind really not want the dow to go below 8300? any reason behind that, or am i just looking for significance...?
safe - agree - good luck navigating this market.
Dope Brontide writes:
When do the October unemployment numbers get posted?
Briefing.com: Economic Calendar
"Oh to go onto CNBC and call bottom right now! "There are some really great values out there! Once in a lifetime deals!"
Haven't they been saying this since Dow 13,500?
Popeye,
Thanks--the acting was so great--each actor knew how to talk with his body, the movement of one finger could say a thousand words. Each owned the camera--and fought over it. Gonna have to rent it and watch with my older eyes.
YSLP, if you've never bought an option before, now is not the time to start, especially to try to cover six figures' worth of stocks.
That list you gave was a nice selection of things I'd be happy to own at today's prices. My advice is to wait out this panic/forced selling, as painful as it may be short term. If you need some cash, lighten up on the stocks after a rebound, but don't panic-sell at today's prices.
"My advice to retired people is to try to get a job soon."
Are you out of your mind, this is a great time to be a bum unless one is in debt up to ones ass then your kinda screwed. I love being a bum.
I'm neither large nor angry, and the argument I made for Volker to unretire is simple: you either get to work, or I quit working, too, in which case we'll both be eating cat food. Of course, I don't have a "real" job; I'm a cheerleader for the life of the mind.
It may still come to the cat food scenario; I have sampled various brands, and 9Lives ain't bad at all. Nothing that a little hot sauce can't fix, anyhoo.
As far as the financial system is concerned: write it all off; there is no safe haven; the insane search for a place to land...is, well, insane. The tank is on empty, all engines are on fire, and the captain has jettisoned with the only parachute left.
Enjoy the descend; the crash will suck in a big way...
Volker:
My wife would simply kill me if she found that I was referring to her as "big" and "angry".
Go for a term like "Spacious Comfybottom" i.e. "My Spacious Comfybottom wants me to stop hanging around this site and get another job."
Mine, however, has come to appreciate the board here since it's saved our financial asses.
I'm surprised that people still own common shares. What keeps you in these? Why not trade options?..increased leverage (bad if you don't know what you are doing...great if you do). Having said that I see why most do not...especially lately since options spreads are ridiculous. Stocks move 5% and bids stay static.
Not a time to learn if you are new to them IMO.
Ciao
MS
YLSP,
IMHO,
This is a bear blog. Bulls would like that stock group a lot. BUD should do well in a recession/depression and most of the others are about as safe as it gets. example, Exxon, since it costs you zero should be profitable going forward, dividend of 40 cents a share is pretty nice when it's free money. No one is going to stop using gasoline in the near term.
For what it's worth, I'd study what you get when you get it and choose what to sell on a bounce and what to hold on to for ten or twenty years as an inflation hedge. It's been said, but the cost of options in this panic may be greater than the benefit.
Why not trade options?
Along with the spreads as you mentioned, the absolute level of VIX takes some of the leverage aspect away.
Also, with options, you not only have to pick the direction right, you have to pick the time right as well.
That being said, in the past 1.5 years, I've concentrated mostly on options, and I usually try to keep them six to nine months out, so that the theta doesn't kill me.
"Mine, however, has come to appreciate the board here since it's saved our financial asses."
You really think you're out of the woods already? You have NO IDEA, NO IDEA of what it's like out there!
Eric-
Exactly what I do.....doing about 200% on each set. It's utterly boring watching the market move up and down and the spreads widen further and further. Almost as if "they know"....
Ciao
MS
BTW I've been trying to get '10's of some sets but the prices are too outrageous and I don't chase them. Had orders in for COF Jan '10 puts last week but never filled.....now I see we own a portion of them.
Ciao
MS
homedad, the "spacious comfy" will be deployed, but I fear it won't register positively.
Hope also someday to see in my house the understanding of your wife regarding wealth preservation measures, and the time it takes to think about and deploy them.
That's the real treasure of your wife as I see it from your posts. a real partner in post measures.
comrade awgee writes:
mock turtle - ebay prices are 15% over spot gold minimum and 30% over spot silver minimum.
I've only been following the Silver market since I don't have enough monthly savings to invest in physical gold--or platinum for that matter.
I cannot find silver bullion anywhere locally (City, County, Area of State), and I have only found silver bullion on eBay for ~18 + s/h (Maybe). That puts the "real" spot market--for me anyway--for silver at least 2x spot. I can find American Silver Eagles, Canadian Silver Maple Leafs (sic?) locally for 18 which is still 2x spot (as of 9:47a CDT)
If you know where I can find silver bullion for spot + 30%, please let me know and I'll give you the +30% for a finder's fee...
Thanks for the advice in this thread. I'm already at the end of the "these things take time" phase. Everyone should have their paperwork into brokerage. I'm going to pester everyone until it is done, mostly the brokerage.
I know my grandfather had a nice blue-chip portfolio but I still doubt we are at "bottom". Unless Congress does something like cut the Capital Gains rate, what's going to make people invest? It seems like they've taken measures to force people into cash.
A year ago or so on these boards someone said, "don't be leveraged". Well I have worked to de-lever my personal finances (still have a bit to go). The problem is that I think every company in the world is leveraged! Hence we are going through "the great unwind". What's the upside to stocks? I don't see it right now. Heck I know people who said "I'm buying at 10k; 9k; I'm buying at 8k" and when those levels got passed they stopped, thought about and said, "Why do I want to buy?"
I wanted to take sell his stocks and go heavy into PMs and have a bit to play around with some "play the market" type of funds... although it seems like the big move already happened from 11k down to 8k.
We also will need a new car in the near future, and have two children. It's nice to have the cash on-hand to send them to pre-school.
YLSP writes: What's the upside to stocks?
I agree things look pretty rough for stocks. I'm toying with the notion that the forced selling that results from delevering has caused the market to fall further than can be explained by even a deep recession - and that the market could recover some if the credit crisis were capped.
But it's just a theory.
JAMES GALBRAITH: I think it's very clear. They also turned over the regulatory apparatus to the regulated industries. They turned over the henhouse to the foxes in every single case...
Not so with banking (I can hear you laughing).
We have the regulators in here constantly. I actually see this as a form of job security for my position responsibilities (but, I have removed my rose colored glasses and smashed them on the ground - a move I believe is consistent with being a CR reader).
A little OT but something I've been wondering about for a time now.
Back in the day few of us had interweb access. I was around for the '87 smackdown and we had to rely on MSM for any news. Actually I did have Internet then (expensive Compuserve queries), but nothing even close to the wealth of news and opinion now found.
Now that all this information and opinion sharing is available, what effect does this have on the average Joe's decisions? We are in uncharted territory market-wise, but also in the amount of available info and opinion. Seems that with all of the people like CR out there digging and digging that the crooks are having a harder time pulling their scams or hiding their misdeeds....at least hiding from those that care to investigate.
Sorry if this is too incoherent. Had a tough weekend.
(OT: The ticker tape won't be as crowded when these former hi-fliers enter single digit territory:
C 12, UBS 13, BCS 12, MS 15, SCHW 15, AMTD 10, DELL 11, ORCL 16, NOK 14, GE 17, PFE 16, BMY 17, SGP 13, JCP 18 and hundreds more. Lots of good buys out there down 50% or more, and plenty of time to the bottom).
Steady As She Sinks.
I can't be broke; I still have plastic...
Capital One Changes Minimum Balance Calculations - The Consumerist
If you know where I can find silver bullion for spot + 30%, please let me know and I'll give you the +30% for a finder's fee...
yagij | 10.27.08 - 10:53 am |
Try LewRockwell.com
Have bought gold from them in the past.
USD still falling against the yen. If it keeps up the holidays will have to be canceled, depression extended another year.
jo6pac writes:
Try LewRockwell.com
Have bought gold from them in the past.
Umm, this LewRockwell.com
"LewRockwell.com winner of Ron Paul's first Freedom Website Award highlights the news and commentary that Lew finds important, or simply interesting. It is therefore unapologetically idiosyncratic. Given this, the views expressed in the articles do not necessarily represent those of Lew Rockwell."
Regional banks are on the tit now...eventually the money will run out. What happens to preferred shares where the company becomes bankrupt? I hope that fire sale proceeds go to preferred shared first.
Sue, are you around? Did you read my post yesterday?
"If you know where I can find silver bullion for spot + 30%, please let me know and I'll give you the +30% for a finder's fee...
yagij | 10.27.08 - 10:53 am"
GOLD SILVER EAGLES US BULLION DEALERS AMERICAN EAGLE COINS BARS
Actually, you can buy 1000 oz silver bars from Tulving for maybe less than 4% over spot.
comrade awgee writes:
Actually, you can buy 1000 oz silver bars from Tulving for maybe less than 4% over spot.
Thank you for the link.
I will now clarify my position:
Where can I get silver for Spot + 30% when I'm buying less than 100 oz? I understand that buying bulk provides a discount, but I currently can't afford buying 500 oz. at a time...
Just checked Tulving and you can get 100 oz silver bars for $1049.
Yagij - Less than 100 oz? Sorry, dunno.
OK so they have more capital. Does this mean they will do more lending or will they just hoard the money? Anna Schwartz (sp?), Friedman's co-author, complained that banks were flush with cash, but were just hoarding it.
Ginsu:
Unfortunately, the spread of new media also means the spread of investo-porn, typically of the bullish variety. There's a lot of craps out there on the intertubes. There's great stuff too, but you have to (a) look for it or stumble across it and (b) think.
"Now that all this information and opinion sharing is available, what effect does this have on the average Joe's decisions?"
Very little, I think.
The people who sought information before, were able to get it. The rest followed the herd.
We are drowning in information, and to tease out useful information becomes ever harder.
The web bot development is a good idea, in theory, but in praxis, all the outliers break any useful statistical data gathering tool. Maybe with a "new and improved" algorithm ...
How do you define moral hazard? Bill Gross knows:
- Bloomberg.com
.