Saving the Rich

[dixiechick]

TweetI probably shouldn't be posting this because I don't have permission from the person who wrote it, but he has some interesting points. I can't help but think the media has fueled the fire. I know that gas prices have gone up and that has made it difficult for some people. I haven't seen them giving up their SUV's and gas guzzling trucks. Instead I've notice people pulling out their credit cards and charging it. Then Baby1 made a couple of post about people still spending, so I thought I'd share this email my dad sent me from his accountant.

_______________________________________

Subject: Saving the Rich

Did AIG go bankrupt? Except for 12 little banks (assets a paltry $150 million on average), I haven't seen any major financials go under. And no one hopefully put their entire bankroll in these banks. Even Bear Stearns
turned out to be a great business deal for J. Dimond at JPM. Think about it.

How many mortgages will become "bad" if the Govt offers a bail out? Do you think the average joe is going to pay extra when the govt will write the check? Short term, maybe, a bailout is good, but longer term, Congress is getting fleeced by Investment Banks.

Let's face it, I have been telling you that these Investment Banks, (Financials) business model requires them to make more money than "Investments" can cover. The average return on the S&P over 30 years is 8%. So they created very complex securities to sell to the ignorant greedy investor and got burned. Due to the uncertainty of what a bankrupt Merrill Lynch would do to investor confidence, the govt is acting, but how about Delta? How do you think they feel about a bail out? And, by the way, the CEO of "struggling" Bank of America couldn't hide his glee in picking up
Merrill for a song. Not bad for "the sky is falling".

Am I the only one who thinks that with an Election 42 days away that politics might have something to do with this? On National Security, the Bush Doctrine actually wins in the "I haven't been bombed since 9/11" category. Isn't it the Democrats motto, "It's the Economy Stupid"? Should I put it past politicians to create a fiasco to get elected? Do you think we will be hearing about this in the Debates?

Other than looking at your 401k and seeing red, how exactly is your life threatened? Maybe companies were a bit overvalued. Maybe there were over-mortgaging of homes. Maybe oil prices are too high. Maybe the govt
does spend too much. But let's get real. Have you given up your cell phone yet? Missed any UGA games? How about that 2nd car, sold it yet? America is the greatest country, ever. Much of its success has come when the
"world" bet against it.

Unless you fell for something overly greedy, the best strategy now is to "do nothing". Let just one financial go under before you get nervous. But these very smart money fleecers know that folks care more about their money, their financial security than their health. It is true. Example: I have a client with a 401k of $1.5 million. As of August, the account is down$55,000 on paper. Not bad. But since I took them out of equities in July of 2007, how come any loss on fixed income? Well it seems Corporate Bonds are priced to sell. They are paying 6.5% but priced in half. Why? Because due to the "calamity" there are no buyers. So I looked at the income YTD and lo and behold these struggling corporations have paid my client $60,000 in interest and dividends. That is the purpose of fixed income, right? Be sure to look at your portfolio and don't panic if your fixed income is down, you didn't buy it to trade it, but to make a return. Look to see if any of it is in trouble of bankruptcy. But your broker might tell you to sell.

Why, because one they make money churning and two someone picks up a 13% return on your loss. If you do it, you are nuts. Stocks are a different story, but you didn't own those for income, but for growth. In slowing growth, you should expect fluctuations. You don't sell these either. How the money fleecers are getting everyone to churn these accounts due to this world ending event is going to be the story. Basically, you sold for half price, sold low. If you look you will find the buyer was your broker. What a deal, huh?

I surely don't know what is going on, I, like you, just have questions. But I am surely skeptical. If I were on CNBC, never going to happen, I would be asking these questions. Somebody tell me specifically the issue that is truly a material number that is affecting the markets? If I were in charge, I would let the chips fall where they might. Right now, for sure, JP Morgan and Bank of America have to be very happy for this non collapse.

A slowing economy is not something new. How our socialist government deals with it, is very new. I don't like it. Here is another analogy. For years I have heard the poor declare someone throw them a bone. How would a trillion$ help them out? But let poor Wall Street get the hiccups, and its "how can we help you sir". I am a bit right of center, but you have to admit, throwing a trillion at the money people seems a bit skewed, don't you think?

[trip]

Tweetthose sentiments are universal and right on

i've posted up often the last week, they are lieing, why, because they are not telling the truth of what the real problems are, it is not sub-prime loans it is all loans

when alot of loans are bad, banks go bankrupt

when u here credit markets are locked up, that mean banks will not lend too banks overnight, cause they fear that bank will go bankrupt overnight and they will not get there money back, which will cause them too goo bankrupt cause they don't have enough cash

now, if x amount of banks go bankrupt, people will want there money, and since banks are levered 10 too 1, there is not enough cash


hope all of that is understandable


here is why they all jumped in line last thursday and this will pass

imagine hank paulson saying all of this

face it boys and girls, THIS IS A JOBS PROGRAM. we borrow 10k from each family, we will get most of that back. Most big business are not leveraged up or stretched, they have delveraged after the tech bubble. This is why we still have 6% unemployment. The only group of folks who need too delever are the consumers. Credit is going to be tight and the consumer will be forced too delever over the next two years. The economy will be slow.

If we don't do this, the taxpayer will not have that 10k bill, which will probably get paid. what will happen if we get one more lock up in the credit market, we will have massive job losses nationwide, massive. And then we will have people in hock thru our liftime.

boys and girls, if we have jobs we can pay it off, if we don't have jobs we don't even have a chance

IT'S A JOBS PROGRAM

we put the blame on sub-prime, and we pass it

two months later folks will have forgotten and accepted it, we use the clinton strategy, there is always another crisis two months down the road we can be a hero on, and the last crisis will be forgotten

we have a historic election, xmas coming, jan. 1, no one will talk about this if they have jobs

IT IS A JOBS PROGRAM

go ged er done

[3Vandoo]

Tweetyou guys have a socialist government?

BWAHAHAHAHA

come here and see what socialism is!
it means pay pay and pay, half your salary, taxes on taxes and taxes

and more taxes on a good taxed 10 times

man, the US sounds like a dream to me now, heaven!

[dixiechick]

TweetNow I believe that the Democrats and Republicans have help instigate this situation in order to create a major crises so they can get elected. It's their way of trying to get vote and "save the day" so to speak.

No, I'm not for more government. I'm actually far from it. I think there should be less federal regulations giving state and local government more authority. You have a much better change of changing things on a local level than you do on a national level.

[3Vandoo]

TweetI lost 130k yesterday in a day

so saving the rick my ass!

[Klash]

Tweet

I lost 130k yesterday in a day

so saving the rick my ass!

$130,000
Damn, your rich in my book; or you were!!!

[dixiechick]

TweetI did even look. I don't want to know how much I lost.


I wish my house would sale. I'd love to take that money and buy some stock right now. Major sale on stocks!

[daved150]

Tweet

I lost 130k yesterday in a day

so saving the rick my ass!

i wish that was all i was gonna loose!!!

[3Vandoo]

TweetI seriously thinking that this pseudo crisis was done on purpose!

if I would have bought stocks yesterday like nvidia, msoft, google

I would have done between 15-50% in margin a day, and this is not saying when these stocks will be back to their average

someone is getting richer

[gator_mclusky]

TweetI lost $5. Looks like a bag lunch tomorrow!!!!!!!

[dixiechick]

Tweet[QUOTE=3Vandoo;864046]I seriously thinking that this pseudo crisis was done on purpose![quote]

It makes you wonder doesn't it!

if I would have bought stocks yesterday like nvidia, msoft, google

I would have done between 15-50% in margin a day, and this is not saying when these stocks will be back to their average

someone is getting richer

That's just it. It takes money to make money.

[3Vandoo]

Tweet[quote=dixiechick;864115][quote=3Vandoo;864046]I seriously thinking that this pseudo crisis was done on purpose!

It makes you wonder doesn't it!



That's just it. It takes money to make money.

actually, I was thinking of even using the credit margin

see one stock that is usually at 25 dollars, was at 8 CENTS yesterday

I was thinking about buying a million, this stock will be back to 22-25 in 2 to 3 years.

now imagine, 90k investment for 25 million return

DAMN IT!

[Dzone]

Tweetwhew! Am I glad that the money I would have put into my 401K went toward boozing and wild women...That was way more fun!!!!!

[daved150]

Tweet

whew! Am I glad that the money I would have put into my 401K went toward boozing and wild women...That was way more fun!!!!!

lol!! i resemble that sentiment myself

[Dzone]

TweetYou know it really does suck when you think about it. People who did without for years and years to save for their retirement, so they could live off the fruits of their labor. Now they have to sit and watch wall street CEOs walking off with billions in bonuses, while their own 401Ks go to shit