Waiting for the big Kahuna Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Waiting for the big Kahuna

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Paxb2u who wrote (81967)	10/14/2008 8:08:40 AM
From: robert b furman	Read Replies (2) of 94695

Keep in mind that this credit squeeze is only in the investment banks. They all have these toxic loans(a small percent of the total). The biggest trouble is they sold the crud for years and it comes back to roost. It is also the big investment banks and commercial banks that provide commercial paper to all industry. Not knowing how much is coming back has frozen all banks to hold onto everything they have. This flood of liquidity and guarantees now compensate for the freeze. The banks now have to go back to business and act like they don't have this problem. In the long run they must work out of the real estate loans. The money will be lost by those who have done a poor job,and reduce capital to those who have overinvested in these poor government encouraged loans. Many and most of which will still payout. We just have to get through the negative over hyping of a small section of the community that has paid up to inflated prices. Most peole are still working. Most people are still living in their homes Most people still want to live in their homes. Most people are unaffected of uninvolved. Wall Street just got their bail out - except now they have to work out of it instead of hand it over to the government. Now all of the companies/stocks that have NOTHING to do with toxic loans (encouraged by politicians who sued over redlining and changed laws to allow no down loans to low credit people) can go back to their respective niches and prosper. This wave 3 of almost a years time has been exhausted and if you look back many wonderful companies have added cash to their balance sheets. Very few of which have a stock price that reflects that reality. ONLY THE BOYS IN WALLSTREET COULD PUT TOGETHER THIS TATNTRUM. The spring now uncoils and trillions come back to the markets as they should. Unfortunately leaving carnage all the way.401K's-those that jumped out in fear, margin calls that forced liquidations. Somewhere in the dark halls, are brilliant people who were short this market adjustment. I just want to learn how to look at the short side and play one of these declines. As a long stock invetor -I've lived through 4-5 that come to memory and they are never fun. The one thing they do do - is ensure that conservative positions must always be maintained. If you look at the carnage much of it was from too much leverage. Those that get hurt riding on a roller coaster are always only those that jump from it. Very hard to remember at times. Bob

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next