Investors....come in please!

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I believe they are going to put some curbs on Shorts on Monday. Drops of 20% and shorts are not allowed for 3 days. Honestly until shorts are curbed even harder. the market will go much lower. The market has just turned into a gambling Casino. Mutual funds for those that expect to make money over the years are a thing of the past.

The scary thing is that as stocks approach such low limits their debt to equity will make them fold..that will be a catastrophe beyond visulization. We are talking many many trillions of loan defaults. Government can't cover these.
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I believe that GM has 100 billion debt. If they go down..that's another 100 billion of unsecured debt out there. Right not the company is only 3 billion value. Noone can buy it bc of the debt.
 
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Quarterly statements are beginning to arrive. The general public is always the last to sell out.....and I don't think they are done yet.
 
"
Originally Posted By: Al

The scary thing is that as stocks approach such low limits their debt to equity will make them fold..that will be a catastrophe beyond visulization. We are talking many many trillions of loan defaults. Government can't cover these.
frown.gif


I believe that GM has 100 billion debt. If they go down..that's another 100 billion of unsecured debt out there. Right not the company is only 3 billion value. Noone can buy it bc of the debt.
"

This statement is indicitive of what may make this bear market much different than the 87 and 73/74.
 
Originally Posted By: Pablo
So why not use the uptick rule?

I think they should. But the fact just remains that the short has become to much of a destabilizing tool. I believe that the market has just reached "critical mass" with too much computer selling at small margins and too much volume and too many day trader..the shorts just add to the problem.

Unless something changes there will never be sustained growth it will just be constant say tooth patterns. Just look at Friday: There was a swing of over 9000 points or 12 percent of the market. And now that Joe Sixpacks have pulled trillions out of the market..that leaves a much higher percentage to the very things that destabilized it and drove these folks away. So the huge "JoeSixPack Buffer" is gone for a long time.

This Joe Sixpack is just going to sit on the sidelines and watch the insanity. Unless inflation hits double didget my 401K, Pension, and SS will be more than adequate. I just can't afford the volatility.

Also there is some thoughts that the Market is being manipulated, possibly by economic terrorists. The thought is that it occurrs during the last 1 hour when activity is already high and this is adding to the mayhem. You figure that a country like Iran with huge petrodollars could be throwing shorts into the market like water...not caring how much they lose.Apparently the FBI is on it like a big dog.

I know we will disagree here Pabs..no problem. Its just an opinion (right or wrong) and I'm personally going to act accordingly.
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Originally Posted By: Al
I know we will disagree here Pabs..no problem.


About what? I don't have any issues with your post. And if I did, so what??
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I will rebut a couple things. Joe Sixpack ain't really in the market. He is but his direct ownership is a small percentage. Some late selling of mutual funds has been a problem.

I also heard the economic terrorism thing. No proof yet. Could be very interesting.

Actually I pretty much know the big boys, the big firms AND hedge funds are "unlevering" like crazy, I mean like mad. We are over the 60% done....but the 30:1 rule is closing fast. No one will put up with it anymore. So what happens when they have to sell stuff fast? They sell quality.
 
I am not doubting you Pabs..but it seems hard to me to believe that JoeSixpack is not in the market in a big way with 401K, retirement, and indirectly Pension funds. I know some friends (plural) who have not sold and probably won't. Obviously, I could be wrong. :)
 
Actually, we believe the times ahead of could be the best we have seen for decades. The oil will continue to fall, and settle somewhere within the 50-70 dollar range. We believe this will translate into a per gallon price of fuel averaging 2.10-2.30. The money will be freed up from falling oil. Since this is the case we assume that corporate profits will rise. This also will induce the masses to drive again, and affect the automotive industry.

Our preference at this point is to aggressively pursue buying opportunities. We anticipated these moves, and this is just one part of an overall plan. We see no reason to change the plan.

We recommended dumping RE related stocks, or investments in 2005, when the majority was buying. We believe the majority hates stocks, and RE investments at this point, therefore we recommend buying them.

This is a internet message board, so as always we recommend you do your own research, and come up with your own conclusion.
 
Al - oh I think more than ever in the past, via those vehicles, Joe is in the market, but as a percentage, it's not huge. Look at it another way.....look how many people have actually saved and invested. It's frighteningly a small percentage. Well I guess those folks didn't have any paper losses!
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Originally Posted By: Al
Also there is some thoughts that the Market is being manipulated, possibly by economic terrorists. The thought is that it occurrs during the last 1 hour when activity is already high and this is adding to the mayhem. You figure that a country like Iran with huge petrodollars could be throwing shorts into the market like water...not caring how much they lose.Apparently the FBI is on it like a big dog.


They didn't do a great deal when some certain people (unknown to date) made hundreds of millions last time.
 
Originally Posted By: Amkeer
Actually, we believe the times ahead of could be the best we have seen for decades. The oil will continue to fall, and settle somewhere within the 50-70 dollar range.

I will be totally amazed if oil/gasoline/Nat Gas stays low in the coming 1-2 years. Hope I'm wrong.
 
I would say this ""problem"" is a cycle and cycles do and must happen. How else can the smart money buy low and sell high!!!! The dumb money buys high and sell low.
 
Days like this are reasons not to bounce in and out of the market. I told people not sell last week, but they did anyway....now they are asking me what to do!
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Well sorry, I'm plum dry.
 
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