highpeaksdrifter
New member
Would some of you guys who make a living in the financial sector explain to me when capitalism became all about credit markets and got away from businesses making a profit and paying their bills with it?
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A House of Cards
- Thread starter highpeaksdrifter
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dmc
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I know I'll get blasted for this.. But we need regulations..
I'm pissed about this bailout... I had every opportunity to jump on the cheap $$ bandwagon but blew it off..
But waddya gonna do?
I'm pissed about this bailout... I had every opportunity to jump on the cheap $$ bandwagon but blew it off..
But waddya gonna do?
Marc
New member
This should go well.
andyzee
New member
When the stock market started being more of a driving force in business than good business sense.
RootDKJ
New member
I'm pissed to shit :uzi:. I've lost over 8% of my portfolio today. I've got cash on hand that I'd like to invest, but with how wacky things are who know what to buy?
Because this has the potential, I'm going to preemptively throw this out there.... Please try to keep politics out of the discussion so that we don't have to lock it...
Thanks in advance.
Thanks in advance.
Johnskiismore
New member
I don't like the whole idea of bailing out at all. That is our money, hardworking taxpayers money. I think I'll stop their.:smash:
GrilledSteezeSandwich
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Because not to many years ago..Lenders did a really good job of convincing homebuyers that instead of a 150k modest fixer upper..they could have a balloon mortgage zero down..cash on signing(totally illegal),,300k+ 3,000 square foot dream home for low initial payments..people are dumb and think short-term and went for it. Are all those lenders who were doing illegal things going to prison????? lol. People in the United States like to live above their means..it would be steezy to always drink Gray Goose cocktails and drive a Benz..but not if I have to live in my Benz..so I'll stick with Smirnoff and Suburu..
GrilledSteezeSandwich
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Well you'll gain that 8 percent back,..it just might take some time..the Stock Market has always been a gamble..remember how big Starter Jackets and Hats were back in the early 90s..well I bought some shares of Starter from my paper-route money for like $30 a share and eventually it was like $3 a share. Good thing I had Disney and Home Depot to even things out and also a good thing I got rid of Disney and Home Depot a long time ago..
so now I just do CDs..and will continue until I get better at Poker..lol..:lol:I always thought I'd do the Wall Street thing after college and if that was the case..I probably wouldn't have a job now..
RootDKJ
New member
I can't play poker to save my life
It has to happen. Either way the taxapayers money is going to be used. Your tax dollars are going to pay for the idiots who bought more house they could afford, the idiot corporations that funded them, now getting some sort of assistance, etc... There is much more at stake here than the bs exec payout plans. The tax payers do not need a bailout, if they did, not a dollar should be given to those who have had a foreclosure, that I do not want my tax dollars going to. They should have read the fine print of their mortgage or not over bought themselves into a home. Sure it is the governments fault for not regulating the market, but that is the past, they must look torwards the future, that is what is at stake now. The suposed $3500/200 million adults is not worth it to me. People will get their $3500 and waste it, it will not improve the economy at all. Did anyone look at their 401k today, well I did, lost about 20% since 01/01/2008. Sure, I am invested in aggressive funds, but I am only 30 and have 30 years to go. Generation x and y are going to have to rely on our retirement plans due to the lack of social security. I would rather see them dip into the social security funds to bail out. I put thousands a dollar a year and will probably never see a dollar.
Pretty bitter.
Pretty bitter.
riverc0il
New member
Bingo. Nuff said. The house of cards was partially caused by predatory lending. But Americans need to take a close look into the mirror before blaming banks for the bail out. Sucks that responsible Americans are going to have to foot the bill but what other choice is there? Let the banking industry crash? Ultimately, no one learns a lesson with a bail out package. But what else can ya do?
hammer
Active member
This might not be the best way to go, but sometimes I think that we should let things be...maybe the economy needs to tank for a while so that Americans will learn to live within their means.
This would really suck for me personally since all of my retirement is in 401k/IRA accounts and they would suffer...but I'm at the tail end of the baby boom generation and I expect to have to work into my 70s anyway... :-?
Marc
New member
Not true. You haven't lost it unless you sold it. Which would have been a pretty dumb thing to do.
Marc
New member
Well you'll gain that 8 percent back,..it just might take some time..the Stock Market has always been a gamble..remember how big Starter Jackets and Hats were back in the early 90s..well I bought some shares of Starter from my paper-route money for like $30 a share and eventually it was like $3 a share. Good thing I had Disney and Home Depot to even things out and also a good thing I got rid of Disney and Home Depot a long time ago..
I always thought I'd do the Wall Street thing after college and if that was the case..I probably wouldn't have a job now..
False. Investing in stock is not a gamble, it's a calculated risk. Stock speculation is a gamble. There is a big difference. The fact that you fail to understand the difference probably explains why you put all your money into CD's and poker.
riverc0il
New member
This is a good point. I always look at down turns as an opportunity since I am only going on 30. Lots of people start selling following big one day declines and I just sit tight and let it ride. If you are too old to afford a downturn, your portfolio should be almost exclusively in stable funds and no need to worry. Otherwise, prices go up and prices go down and the more you invest and longer you invest, the more likely you'll come out ahead.
highpeaksdrifter
New member
I’m not just asking about the bailout. From reading and watching the news I’m getting the impression that the real problem is credit. It seems that all businesses, no matter how successful, need to constantly barrow to stay in business. What happened to businesses being self sustaining?
It strikes me that capitalism as we know it is unfolding right before our eyes. It seems to me that government will be playing a bigger part in overseeing private businesses in order to protect the public from their unscrupulous practices.
Marc
New member
Indeed. I had a bit of money just sitting around in my Roth that I'm using to buy stuff evertime we have a shite day like yesterday.
It's funny how often I hear what you just said preached but how rarely the advice is actually followed when there's the slightest hint of instability.
If you look back over the history of the S&P 500 composite, you'd be hard pressed to find any 10 year period that did not grow about 10%. The last time I think was the Great Depression, and then it took what, 15 - 20 years.
A cool head pays big for the passive investor over time. It's too bad there's not more of us.
dmc
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Friends of mine with successful ski shops take a line of credit out to buy their stock and then pay it off during the season... It's the only way to stay in business...
They can't afford to buy all that stock
the problem is it's now tougher for them to even get the $$ cause things are so F'd up.....
ctenidae
Active member
The #1 rule of business is to make teh ighest and best use of your capital. Generally, meeting payroll, a short-term need, is not the best use of expensive earnings. Therefore, most large company payrolls are met using short term paper. This is the next big problem on the way. It's entirrely possible that a large company or two won't make payroll. Imagine the effect on the country if GE doesn't make payroll.
We got here because Americans were willing to borrow much more than they could afford, and lenders were willing to let them, all in the quest for a quick buck. Bailout or no, consumer spending is about to nearly cease. The bailout is to at least maintain some vestige of a financial market, which is critical to any recovery going forward.
Some serious pain for everyone is on its way. But, things will adjust, and we'll all get better. My advice to everyone- sit tight, be smart, keep cash available, and wait. Panic selling only hurts you in the short, medium, and long term.
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