The stock market 1/22/08

[Gary Crumrine]

If I ever have children I will drum finances into their heads more than anything else (except maybe physical and emotional health). I cringe when I see people spoiling their kids with financial/material things. The knowledge of monetary value and their own power over it is one of the most important things you can teach a child - at least, as long as money is a necessary evil.....

You probably know this already, but Klarise Yahya recently wrote a book on what people ought to know about investing. She's the real estate and finance columnist for a west coast magazine, so the publisher (at least) thinks she knows what she's writing about. The book is privately published at LuLu.com and I found it valuable. It's called Stairway to Wealth.

 

[nobodyspecial]

This is a great read if you are starting out (and quite funny to boot)
http://www.andrewtobias.com/theonly.html

Scott Burns is one of the very best financial writers I've come across.
http://assetbuilder.com/tags/Couch+Potato+Investing/default.aspx
His Couch Potato portfolio articles are brilliant in their effectiveness as well as simplicity.

 

[Solid Citizen]

Miami housing VICE

The amout of high rise condo projects in downtown Miami appears impressive. BUT, go there at night & see how many are all DARK, now thats SCARY

Solid Citizen

 

[pgoat]

You probably know this already, but Klarise Yahya recently wrote a book on what people ought to know about investing. She's the real estate and finance columnist for a west coast magazine, so the publisher (at least) thinks she knows what she's writing about. The book is privately published at LuLu.com and I found it valuable. It's called Stairway to Wealth.

Thanks Gary - I didn't; Good to know.

 

[panamag8or]

The amout of high rise condo projects in downtown Miami appears impressive. BUT, go there at night & see how many are all DARK, now thats SCARY

Solid Citizen

Panama City Beach is that way, too. They've even stopped projects that were underway.

 

[dr greg]

what a joke

If I get this correctly, America is in trouble because lots of bankers lent lots of money to people who can't pay it back, then having lost billions for their shareholders they all hit the eject button with massive golden handshakes for their efforts and no penalty of any kind.
Then as it all starts to fall apart, those who shout the loudest that the market is the perfect instrument and government regulation of an economy is heresy run whimpering to the government to do something to bail them out when the going gets tough. It's like something from the Marx Bros, except it's real.....

 

[Rufus]

Absolutely agree, good Doctor!

If you want proof of this, check out the Northern Rock Bank fiasco here in the UK... and the Government's genius solution... to issue stocks which WE the tax payer underwrite, having already unsuccessfully bailed the bank out BILLIONS.

The Government is terrified of nationalising it... so is handing it to...Richard Branson's Virgin ... Just looking at his smug smirk says it all really... The cat that got the tax payers cream.

I wish I could run to the Bank of England every time I messed up.

I weep.

 

[Miss 1929]

You must have money.

It doesn't much matter what happens today or tomorrow or the next day. Over a period of many years these cycles balance each other out. Maintain a well diversified portfolio across distinct asset classes and let the chips fall where they may.

Some of us are not rich investors, and these fluctuations only affect us in high prices, rising mortgage rates and depressed job markets. It sounds rather hard hearted to say that it doesn't matter! What about retirees hoping to survive on their life savings? Inflation can wipe them out completely. It happens all over the world, it can happen here too. And probably will at this rate.

 

[PrettySquareGal]

Some of us are not rich investors, and these fluctuations only affect us in high prices, rising mortgage rates and depressed job markets. It sounds rather hard hearted to say that it doesn't matter! What about retirees hoping to survive on their life savings? Inflation can wipe them out completely. It happens all over the world, it can happen here too. And probably will at this rate.

Thanks for saying this. It was what I was thinking but I couldn't respond in a civil manner.

 

[PrettySquareGal]

Since the Fedora Lounge evokes the Era of 1920s - 1950s

there were some depressions which were survived as well.

Some survived, some did not, but all were affected.

 

[PrettySquareGal]

Absolutely agree, good Doctor!

If you want proof of this, check out the Northern Rock Bank fiasco here in the UK... and the Government's genius solution... to issue stocks which WE the tax payer underwrite, having already unsuccessfully bailed the bank out BILLIONS.

The Government is terrified of nationalising it... so is handing it to...Richard Branson's Virgin ... Just looking at his smug smirk says it all really... The cat that got the tax payers cream.

I wish I could run to the Bank of England every time I messed up.

I weep.

I, too, am against any sort of government bailout. What burns me up, and my savings and 401k, is the devaluation of the dollar and the inevitable increase in taxes as you mention.

(I hope that isn't too political a statement.)

 

[Rufus]

Just be glad you're not an investor in Societe Generale...

Holy M*rde!

 

[CharlesB]

Ill just say this we need to return to gol stanar and no longer have currecny by fiat

 

[nobodyspecial]

Some of us are not rich investors, and these fluctuations only affect us in high prices, rising mortgage rates and depressed job markets. It sounds rather hard hearted to say that it doesn't matter! What about retirees hoping to survive on their life savings? Inflation can wipe them out completely. It happens all over the world, it can happen here too. And probably will at this rate.

I'm by no means a rich investor and did not have any intention of coming across as being hard hearted. Large stock market fluctuations, both up and down, make for lots of headlines, my point is these wild daily fluctuations flatten out as you look at them over a longer time horizon. If the economy falls into a recession, that's a very real problem.

 

[scotrace]

"Analysts" and talking heads are making it worse. They decided Tuesday that this was going to be a Week of Contagion and Disaster! and that's they way they've played it, facts be damned.

 

[nobodyspecial]

"Analysts" and talking heads are making it worse. They decided Tuesday that this was going to be a Week of Contagion and Disaster! and that's they way they've played it, facts be damned.

Quite right. The stock market is driven by financial types attempting to forecast future corporate earnings. Sometimes they get it right and sometimes they don't. The stock market is not a snapshot of the economy hear and now and frequently the market over reacts in both directions. News outlets take the story and run with it regardless of whether the reporting is fundamentally solid.

Another good source of personal financial information.
http://minnesota.publicradio.org/radio/programs/marketplace_money/

 

[Brian Sheridan]

Just as well we all enjoy depression era clothes and lifestyles...

The best, funniest, quote I have read in a long time!

 

[Foofoogal]

Just be glad you're not an investor in Societe Generale...

Holy M*rde!

This will have a worldwide impact like dominoes IMHO. How many others have not been caught.
Was very disturbed while in Scotland of the Dutch government finance minister Wouter Bas going to China and inviting them to invest or take over failing or ailing American banks with capital.

 

[Miss 1929]

Thanks for saying this. It was what I was thinking but I couldn't respond in a civil manner.

I took a deep breath and counted to ten...

 

[Miss 1929]

It does look scary

But I really can't help but wonder how much of it is pre-election manipulation...