Guest MonkeySee Posted February 20, 2009 Posted February 20, 2009 NEW YORK (Reuters) – The Dow industrials closed at a more than six-year low on Thursday as investor fears that banks could be nationalized drove their stocks to a 17-year low and a rise in the number people receiving jobless benefits to a record high stoked worries about the deepening recession. Why are they talking about nationalizing banks? Maybe the Republicans were right when they said that Obama was going to turn the US into a socialist system? Quote
Guest lvdkeyes Posted February 20, 2009 Posted February 20, 2009 Maybe the Republicans were right when they said that Obama was going to turn the US into a socialist system? Socialist or bankrupt. Take your pick. Quote
KhorTose Posted February 20, 2009 Posted February 20, 2009 Socialist or bankrupt. Take your pick. Many countries have a national bank. The USA had one until Andrew Jackson. No way is that a step towards socialism, and it just may stop many of the corrupt practices that got us in this mess. Quote
Guest GaySacGuy Posted February 20, 2009 Posted February 20, 2009 Obama needs to do something about this disaster that Bush created and left in Obama's Lap!!! And on top of that, the market is just opening in a few minutes...and is expected to open dropping! Quote
Guest fountainhall Posted February 21, 2009 Posted February 21, 2009 ..and is expected to open dropping! It did! Quote
Guest MonkeySee Posted February 21, 2009 Posted February 21, 2009 No way is that a step towards socialism Would a car czar be a step towards socialism? I don't think we have to worry about socialism in the US but some might see it going that way. Quote
Guest shebavon Posted February 21, 2009 Posted February 21, 2009 They already backed away from the Car Czar idea, and I don't believe they will nationalize the banks, though that might be the wisest move. Interesting how the talking heads are saying that we should not bail out the stockholders who made bad investment decisions. The thieves with the 100 million dollar salaries and fixed option bonuses were able to get their fortunes out in time. Those of us with retirement accounts entrusted to the investment houses were left holding the bag in a gigantic ponzi scheme. Quote
Guest fountainhall Posted February 21, 2009 Posted February 21, 2009 Say the US were to nationalise, say, Citigroup. Does that mean the sovereign wealth funds from Singapore and the Middle East which pumped large amounts into the bank a year or so ago, plus one of its largest individual shareholders who is also from the Middle East, will have their investments wiped out? Or are they likely to get special treatment whilst ordinary stockholders suffer the consequences - again? Quote
Bob Posted February 21, 2009 Posted February 21, 2009 Say the US were to nationalise, say, Citigroup. Does that mean the sovereign wealth funds from Singapore and the Middle East which pumped large amounts into the bank a year or so ago, plus one of its largest individual shareholders who is also from the Middle East, will have their investments wiped out? Or are they likely to get special treatment whilst ordinary stockholders suffer the consequences - again? If the sovereign wealth funds (whatever those are) bought IOU's or stock, then yes, a nationalization of the bank may very well mean that they get nothing. A nationalization doesn't necessarily mean a "bankruptcy" or a wipe-out of investors and creditors - but it could mean anything from nothing at all to a total loss on the investor side. I've loosely understood that the US government is receiving (effectively) preferred stock in exchange for its pumping of billions of dollars into the banking system. The pumping of those dollars into the banking system - along with any rules on operations imposed by the government - is already bordering on "nationalization." Quote
Guest Astrrro Posted February 21, 2009 Posted February 21, 2009 don't think there's that much Obama can do. This is a worldwide problem. After the market crash of '29 it took years for the market to bottom and some supposedly gay Sunee boys don't bottom either. I'm more or less market neutral in stocks but my emerging market bonds still take a bath on bad days. If I had massive cajones I'd short more but I really don't like volatility with my life's savings. But the worst is yet to come IMO. Quote
Guest MonkeySee Posted February 24, 2009 Posted February 24, 2009 If I had massive cajones I'd short more but I really don't like volatility with my life's savings. But the worst is yet to come IMO. The worst may be yet to come, but there sure seems to be some stocks out there that look like a good value. I am not betting the farm, but nibbling right now. Buy a little now and average down, if you have to. I still have faith in America and think things will get better. Quote
Guest Astrrro Posted February 24, 2009 Posted February 24, 2009 I'm nibbling too but hedging my long position with short ETF's so it's a market neutral play on stocks I like. I like companies that provide clean water and waste treatment to emerging markets. Not many things are as important as clean water. I also like USA pawnshops. When you have no job and no credit you'll be hocking the family jewels. Quote
Guest MonkeySee Posted February 25, 2009 Posted February 25, 2009 I'm nibbling too but hedging my long position with short ETF's so it's a market neutral play on stocks I like. I like companies that provide clean water and waste treatment to emerging markets. Not many things are as important as clean water. I also like USA pawnshops. When you have no job and no credit you'll be hocking the family jewels. I would stay with the "blue chips." If you have enough time before you need your money, I think you will be very happy with the outcome. Quote
Guest shebavon Posted February 25, 2009 Posted February 25, 2009 I really think the beaten down big boys like GM, Ford, GE, Citicorp and BankAmerica will all come back. Hopefully before I go broke. Infrastructure companies such as Foster Wheeler and green tech companies will also be receiving a good share of the stimulus. Quote
Guest MonkeySee Posted February 25, 2009 Posted February 25, 2009 I really think the beaten down big boys like GM, Ford, GE, Citicorp and BankAmerica will all come back. Hopefully before I go broke. Infrastructure companies such as Foster Wheeler and green tech companies will also be receiving a good share of the stimulus. I think you are right, although it is hard to put my money where my mouth is. I am nibbling a bit, but I am not betting the farm just yet. Quote
Guest fountainhall Posted February 28, 2009 Posted February 28, 2009 Investment guru Warren Buffet has said in a letter to shareholders expaining a 62% drop in Berkshire Hathaway profits that the economic environment made many people adopt a creed he used to see on restaurant walls years ago - "In God we trust, all others pay cash." He said America has faced bigger economic challenges in the past, including two World Wars and the Great Depression. Buffett said he's certain "the nation's economy will be in shambles throughout 2009." But he said America's best days remain ahead. Quote
Guest shebavon Posted February 28, 2009 Posted February 28, 2009 The title on this thread is now dated. We are now at 12 year lows. See, progress has been made. We are now closer to the bottom. Quote
Guest MonkeySee Posted March 1, 2009 Posted March 1, 2009 I bought some Citibank for under $2 a share. Call me crazy, but I think it is a good deal even if Obama nationalizes the bank. Quote
