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$700 Billion Bailout

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  • #46
    Re: $700 Billion Bailout

    This might make me a bit unpopular, but if a single stock or sector can affect your greatly affect your retirement; you are not sufficiently diversified. Most of us (myself included) are not smart (and lucky) enough that we should be picking individual stocks that constitute a large portion of our portfolio. We should be buying mutual/index funds. There may not be as large an upside potential, but there is also less of a downside risk.

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    • #47
      Re: $700 Billion Bailout

      Another thing that people aren't discussing, let alone the media isn't letting "others" know are suicides.


      There's a lot more of them going on right now than anyone knows....and they're not supposed to make a habit of letting others know its going on for fear of others following suit.
      Northern Kentucky Plumbers Twitter Feed | Plumbing Videos

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      • #48
        Re: $700 Billion Bailout

        Originally posted by cpw View Post
        This might make me a bit unpopular, but if a single stock or sector can affect your greatly affect your retirement; you are not sufficiently diversified. Most of us (myself included) are not smart (and lucky) enough that we should be picking individual stocks that constitute a large portion of our portfolio. We should be buying mutual/index funds. There may not be as large an upside potential, but there is also less of a downside risk.
        Charles you are young, smart and correct, unfortunatley a lot of older folks invested in their companies and lost. I knew many hardworking folks who worked for Lucent Technologies and invested their life savings in what they believed was a rock solid company. The stock was up around the high $80's a few years ago, then underwent several reverse splits. Similar stories have been repeated all too often over the last few years. We have seen the long reaching damage done to mutuals when a big player goes bust. The markets are a gamble no matter how safe you bet.

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        • #49
          Re: $700 Billion Bailout

          Originally posted by DUNBAR View Post
          Another thing that people aren't discussing, let alone the media isn't letting "others" know are suicides.


          There's a lot more of them going on right now than anyone knows....and they're not supposed to make a habit of letting others know its going on for fear of others following suit.

          Money would be the last thing I'd kill myself over. Terminal disease......that's perhaps another matter.

          But money is such a stupid thing to die over. So you go broke, you're homeless, the wife and kids leave you, whatever.

          At least you've got your health and smarts to go and start over. If you're dead, then you're just dead. Being an alive loser is better than being a dead loser. At least you've got a chance as a live loser to become a winner.
          I'm on "The List" and I love it!!

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          • #50
            Re: $700 Billion Bailout

            That's true...but these guys getting a taste of having everything...then losing it all....is a personal demon of sorts. The last stock market crash had tons of suicides. I'm pretty sure that's why wall street now has sealed buildings.


            IF they broadcasted the number of suicides that actually came out of the stock market dropping down to 8000...or a 1/3rd, you'd have some serious panic worldwide.

            All the other nations markets are watching america's plummet.


            The speech bush gave a few nights ago I don't even think phased the american public of the seriousness that's coming.
            Northern Kentucky Plumbers Twitter Feed | Plumbing Videos

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            • #51
              Re: $700 Billion Bailout

              Originally posted by Frankiarmz View Post
              Charles you are young, smart and correct, unfortunatley a lot of older folks invested in their companies and lost. I knew many hardworking folks who worked for Lucent Technologies and invested their life savings in what they believed was a rock solid company. The stock was up around the high $80's a few years ago, then underwent several reverse splits. Similar stories have been repeated all too often over the last few years. We have seen the long reaching damage done to mutuals when a big player goes bust. The markets are a gamble no matter how safe you bet.
              My grandmother is one of those people who lost a boat load in Lucent. The stock she was granted while working for AT&T turned into Lucent stock after the divestiture. She kept that, and it tanked.

              I own absolutely no stock in the company that I work for. Working for a company opens you up enough to the risk of that company hitting hard times; owning the stock only makes you more vulnerable. I think that if you are granted stock, as soon as a lockup period is over you should sell at the first practical opportunity and invest it in something else.

              Your point about thinking a company is rock solid actually proves what I am getting at. No company is rock solid; look at Arthur Andersen. Some idiots on the Enron account tanked the company incredibly quickly. Before that it was pretty solid. Since it is so easy to get index funds now, I think only financial wizards should be trying to outsmart everyone else; and thanks to the events of the last few years we can all see where that strategy has gotten them.

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              • #52
                Re: $700 Billion Bailout

                Originally posted by cpw View Post
                My grandmother is one of those people who lost a boat load in Lucent. The stock she was granted while working for AT&T turned into Lucent stock after the divestiture. She kept that, and it tanked.

                I own absolutely no stock in the company that I work for. Working for a company opens you up enough to the risk of that company hitting hard times; owning the stock only makes you more vulnerable. I think that if you are granted stock, as soon as a lockup period is over you should sell at the first practical opportunity and invest it in something else.

                Your point about thinking a company is rock solid actually proves what I am getting at. No company is rock solid; look at Arthur Andersen. Some idiots on the Enron account tanked the company incredibly quickly. Before that it was pretty solid. Since it is so easy to get index funds now, I think only financial wizards should be trying to outsmart everyone else; and thanks to the events of the last few years we can all see where that strategy has gotten them.
                I've been told on here we look alike. Now we think alike! There gonna' run us out. I just know it. We're like the "Wonder Twins". I'm not sure there are "Financial Wizards" though.

                You ever wonder why a panel of "Financial Wizards" with multiple degrees can sit at a roundtable discussion and their always 50/50 on agreeing? Seems like similar intelligence with the same information would come to the same conclusion.

                J.C.

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                • #53
                  Re: $700 Billion Bailout

                  Originally posted by JCsPlumbing View Post
                  I've been told on here we look alike. Now we think alike! There gonna' run us out. I just know it. We're like the "Wonder Twins". I'm not sure there are "Financial Wizards" though.
                  Hopefully I can convince the wife to let me go to the next Roundup. It would be fun to meet in person. I'm sure you would get a good ROI on it with what you could learn about all those tools.

                  There are some financial wizards; but they don't tell anyone their secrets [because if they did, the secrets wouldn't work anymore]. It is also becoming harder and harder to be a financial wizard with computer trading getting so much faster.

                  My take on it is that if you are a regular guy, then trying to pick individual stocks in any big way is like saying that you can beat the casino because you have a system.

                  I'm lucky that I've learned this lesson early. The last company that I worked for and had stock in was VillageWorld.com, which turned into Biometrics 2000.

                  http://www.marketwatch.com/quotes/btoo

                  Biometrics 2000 Corp. BTOO (OTHER OTC)
                  $0.00
                  Change:0.00 -75.00%
                  Volume:58,000

                  I also bought Vonage at $17 (now $1).

                  Unlike my grandmother, I got to learn this lesson without losing many years worth of salary.

                  You ever wonder why a panel of "Financial Wizards" with multiple degrees can sit at a roundtable discussion and their always 50/50 on agreeing? Seems like similar intelligence with the same information would come to the same conclusion.
                  I think the same intelligence/same information is kind of like the efficient market theory. The problem with economists is that they all have different theories/models of how the whole thing can work. I think it goes back to that if they were really a financial wizard; they wouldn't be telling us their secret.

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                  • #54
                    Re: $700 Billion Bailout

                    I've always been too chicken or cheap to go after individual stocks. I try to maximize with indexes & ETF's for the longterm. Now looking at real estate.

                    This recession, mortgage crisis, and bailout doesn't shock or surprise me in the slightest. My subcontractor & contractor buddies were talking about that it had to happen. That was 5 years ago.

                    J.C.

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                    • #55
                      Re: $700 Billion Bailout

                      Originally posted by cpw View Post
                      This might make me a bit unpopular, but if a single stock or sector can affect your greatly affect your retirement; you are not sufficiently diversified. Most of us (myself included) are not smart (and lucky) enough that we should be picking individual stocks that constitute a large portion of our portfolio. We should be buying mutual/index funds. There may not be as large an upside potential, but there is also less of a downside risk.
                      If one, two or several companies stock value can affect the overall welfare of an entire country & send finnancial ripples worldwide...what does that say about our economic structure?

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                      • #56
                        Re: $700 Billion Bailout

                        I'm certainly no wiz at stocks etc and don't really have the patience nor time to devote to it so I do the mutuals thing.The broker I deal with sometimes thinks I'm nuts at how I do it.Any time a mutual fund hits 5k I take half and invest that in another fund invested in a different sector.The new to me fund might be making less but personally I feel much safer with a bunch of little funds well spread out in their investments then a few funds.
                        Just my way and thoughts...Sam

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                        • #57
                          Re: $700 Billion Bailout

                          I kind of know me and in the final analysis I probably won't take advantage of the insider knowledge to which I have been privy. Sometimes I get in a Woussco moode and bray. I have had some good hits from IPOs through Schwab and I am certain there will be more to come.

                          I was saved, to a certain extent, by selling Budweiser, which had been langushing for a couple years, just before the Lehman crash. I have been into gold and gold mining stocks for a number of years so that was a help. I also sold GE Capital which had been stinky for a long time.

                          I didn't have a huge exposure in Lehman in terms of percentages, but the lost money is still not there for my wife. The only reason I haven't retired for good, I retired once and didn't work from 1989 to 1999, is that I want to sock money away for my wife's years after I die. Even though she has her own portfolio, and is far more conservative than me, I have a felt obligation to try to do what I can for her. My anger at the Lehman loss isn't for me it is because someone took something from someone I love. The fact that I am alive means I have everything I need.

                          On a more philosophical note the Brussels Sprouts from our garden are just as crunchy, the sunrises are still spectacular and the baby skunks that walk up to us at dusk in the back yard are still just as cute.

                          Off to work.

                          -Tom

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                          • #58
                            Re: $700 Billion Bailout

                            really now, using other peoples money to bailout companies and the so called "smart ceos" of wall street that failed miserably.., i mean it just doesnt make sense..

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                            • #59
                              Re: $700 Billion Bailout

                              Originally posted by Tom W View Post
                              I don't know about being over the worst of it Frankiarmz, I, personally, will never be over the worst of it. I lost fat bucks in Lehman, big fat bucks. My other stocks took a hit but they will recover. The money in Lehman is gone and no matter how much the other stocks recover the Lehman money will never be there. I will never be over it. I can declare the Lehman bucks as a loss when I start to withdraw my 401(k) but, ideally, that is a long way off.

                              In the last few years I have been given priviledged information and have had the opportunity to do some insider trading. I never did. But you know what? The next time something comes along I plan to take advantage of it.

                              No more playing fair.

                              -Tom
                              hope you recover them back..

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