As the Down Jones closed at 7,115 today, we realize that you can purchase a share of Ford stock (at $1.74) or G.M. (at $1.77) for less than the cost of a cup of coffee or a gallon of gasoline. Did you ever think this would happen?
Am I suggesting that we stop drinking Colombian blend Java and focus on saving American jobs by buying these stocks? Sounds good, but there surely is a major risk in this market.
Having just left our bank, no, we don’t own a bank, I spoke to the Vice President whom I have known for a few years. We discussed friends and employees of that bank that lost their money invested in the bank’s stock. The name, Washington Mutual, which is now part of Chase.
As a follow up to that visit it might be of interest to inquire as to how many Juice readers have their retirement funds invested in corporate stocks, where they work, whose firms are now tanking?
While it is unfair to grade president Obama after only 34 days in office the picture on Wall Street is not rosy. In fact the picture on Main Street is just as bleak.
Sorry, but I find president Obama’s taxing the rich to cut the federal budget deficit in half in the next four years to be a radical target. While he speaks of cutting our troops in Iraq he just approved deployment of another 17,000 troops into Afghanistan.
The “free market” is the only way to bail out our country. I would opine that president Obama’s Agenda, taking America into Socialism, will backfire and cost the Democratic party seats in Congress in 2010.
How large does he plan to increase our federal deficit when he just stated that “trillion-dollar deficits will be a reality for years to come.”
Larry. Your beginning to ramble. What happened to your stock tip of the day that opened this post? “Keep your money under a pillow until we can see over the horizon.”
Larry, you miss the point. There is Value in a cup of a Mocha Frap with whip, and caramel. There is none in GM!
Washington Mutual management was giving out these subprime mortgages. So, if anything, the bank Vice President you talked to may have been one of the people responsible for this whole mess…
Who is responsible?
The Government? We need to make homes more affordable, for people who cant afford them!
The Borrower? Borrowing more money than they could repay? No, if you are lending it to me I’ll take it!
The loan Agent? 22 year old guy getting big$ for giving money to people, over and over? If you are going to pay me to lend out your money I’ll take it!
The Broker? I can make a killing getting people to lend money that I will sell to wall street? If they buy it, I’ll sell it!
The Wall Street guy? If I can make huge fees packing these loan together, and then make hugh fees for selling them to people? I’ll take it!
The Broker? I will get paid to sell this stuff that has a AAA rating? It has AAA Rating! I’ll sell it?
The rating agency? You will pay me to rate this stuff? They all get paid off early? I get paid to do it!
The Appraiser? I’ll get paid to tell you the house is worth what the same house 5 doors down sold for, and I get Paid! That is how we value houses!
The Client? a 3.5% CD is not good enough! I want a 6% or 7% on my money! With a AAA rating! If you don’t give it to me I’ll go next door and get it!
I think there is plenty of blame to go around for EVERYBODY!
The “Free Market” – what Disney movie was that?
A check of ancient history shows Bush started the takeover of brokers and banks – hardly an Obama idea. Also, it was Bush & the Reep congress that made those tax cuts temporary – maybe they knew something – again not Obama’s idea.
Keep retirement dollars in your employer’s stock – what an old fashioned ENRON idea.
Spread the blame around to everybody – doesn’t fly as a lot of people knew exactly what they were doing and took their bonuses and bailed. And the idea of more or better regulation conflicts with the “Free Market” ideal.
Mark.
Your comments are right on target.
When Bank CD’s were paying 3% to 4% and those eager for larger ROI’s invested in hopes of getting 12-13% annual returns in uninsured instruments, they only need to look in the mirror as to who is responsible for their failure to consider risk assessment.
As to Freddie and Fannie I will catch flack for pointing my finger at the good guys. We know who they are. The first name is Barney. No, not “BARNEY the loveable purple dinosaur who comes to life through children’s imaginations” from a PBS TV program. His last name is the same as the first name of our MV mayor. Frank!