I'm watching too many people I know getting worried, and so now it's bleeding over to me. Lord knows I'm no stranger to worry, but I was remaining outside of the influence of this one. Until now.
Wall St. keeps falling. The 700 billion dollar bailout doesn't seem to be doing anything for people's fears. The article says people are still selling their stocks. And one of the articles I read about the bailout was that it was going to allow the government to assume the "toxic" mortgages that had so many homeowners in a bind. That was great news to me on behalf of my friends who are facing trouble and possibly losing their homes, but I didn't see where that connected with whole Wall Street situation. And it looks like other people don't either. I dunno what any of it means though. It's been mostly like a war in a wizard's school. I could only watch the pyrotehnics on the horizon. But now I'm starting to worry if all that fuss is about to make it rain red fire on my head.
Secondly, they're finally reporting on the mystery I brought up last week (seven days ago, exactly); 'Oil Prices Say "Eff You!" To The Economic Crisis'
Okay, so I paraphrased. But I did take this picture yesterday morning;
And I took this pic THIS morning;
Gas Wars!!
Nothing but GAS Wars!!
Kooky Nutty, GAS Wars!!
Edit: Hey!! Something just occured to me. People are selling their stock. That's what's making the Dow Index go down.
They're SELLING their stock.
They may not be getting the money they expected to make, and they might be losing some of the initial investment, but they'e SELLING their stock.
That means they're putting money back into their pockets. They're taking it off Wall St. and putting it BACK into their own hands.
So how exactly is that "bad" for the economy? Didn't Dubya come up with an ingenious plan some months ago to help Americans do exactly that? Give us more money in our hands to "stimulate" the economy? So, people having more money to spend, as oppsed to letting it sit in the neverwhere of Wall Street's shadow economy--this is a bad thing?
I sense shenanigans from the alarmists in the media. I say let it crash. Let's get rid of this get rich young economy and let's go back to Real Products for Real Money. If you make money, let it be for a new invention, like a system for re-greening the planet for instance. Otherwise, let every slick dealer go out and get a real job. That way, with more people making 50-70K a year, instead of 500-700K, maybe the cost of living will go back to reasonable instead of ridiculous.
And yes, this pertains directly to me. I want to live in a glassy, shiny new highrise apartment in Manhattan. And I work dammit! Two jobs! I've got my Masters' degree! I'm doing it honest! The American Way! So if the whole economy has to fail to in order for me to earn what I deserve, instead of giving it away to the Old Boy Network--then oh well. Look out below!
3 comments:
My understanding is that selling stock affects the companies dividend (which would be the amount of money that one gets yearly from said company just by owning the stock). By affecting the dividend (in this case negatively) you're causing stocks to go down which makes the dividend worth less which means people start to lose dividends (example: say you buy 5 stocks of a company that pays 10 dollars every year, and suddenly the dividend (at 10 right now) drops to 0; it makes sense to sell you share (which is still above that dividend of 0) and make some money back rather then have no profit) they sell their stocks and that causes the dividend to crash and more and more people bailout causing a major snowball effect.
At least it's better than the Wall Street Crash which essentially was the same instance except that people had bought shares at half their prices because Banks never thought a bailout would occur. Boom! What did we learn? Stocks go crazy!
Of course I myself only have a slim understanding of the market, so I could be entirely wrong in my summary.
Eliel said;
"Yes, Alan, people are taking their cash out of the markets, but the issue is that they might soon have no where to spend it if businesses cannot make payroll because banks won't give them operating loans so they have to close their doors.
Gas prices are going down because oil producers don't think anyone is going to have any money to buy as much gas as they have been when times were "good"."
So Eliel, who set up the rule that banks shouldn't lend to businesses when their stocks fall? Is the 700B going to go to the businesses to make up for the loss of stock? Or is it going to the banks to insure the loans that they don't want to give?
What I like about this loan is that the government now gets to dig in dem guts of Wall St and find out just what the hell is going on out there.
I read an article that resulted from just such an investigation and it said that Lehman Brothers, while calling for financial aid, was still working in a plan to safeguard a way to give its presidents their expected millions in bonus money.
Because of client confidentiality in my evening sessions, I can't detail the exact method of the following knowledge, but believe me when I tell you--these skyhigh money brokers are motivated by greed of the highest caliber. That's how they both invented and benefit from the system of such high acquisitions. IMHO.
I liked that article you sent along with your e-mail. I'm going to give that it's own post.
Post a Comment