Economic meltdown!

[Guard Dog]

So... Buying opportunity for stocks, or buying opportunity for canned goods and ammunition??

 

Actually a little of both. When I sold my last house I reinvested all of the money (minus what I had to pay for closing and my ex's half) into my new house, then refinanced and took cash out. I dropped in intrest rate 3/4 of a point too so it was a pretty good deal. So now I have a little cash to invest and in markets like these, cash is king. I've been looking at stocks I think might be underpriced, EBAY for example has dropped around 15% and is around $16.50. They are already a minority owner of Pay Pal and just bought it's main competitor Bill Me Later outright. Pawnshops prosper in hard times is Ebay is the worldwide pawnshop. P/E is not that great but it does have a low debt service. I like it at $16.00. If it hits $16 I'll buy in. Real Estate is another option I've been looking at. There a few houses in foreclosure near my office in Bartlett I think could be had fairly cheaply.

 

Tech stocks make me nervous because at the end of the day these are companies that have no assets. The are essentially selling air (BW). Then again I might just take to whole roll to Las Vegas and play $100 hand Blackjack until I double up or go bust.

[theslug]

Then again I might just take to whole roll to Las Vegas and play $100 hand Blackjack until I double up or go bust.

Can I meet you there?

 

We could be friends irl

[Humodour]

Thankfully Australia's financial system is still very sound (relative to how Europe and the US are coping).

 

Still, I think it might be time to stock up on packets of pasta and powdered milk.

[Enoch]

US Fed & Euro banks order emergency rate cut.

[Walsingham]

I spoke to a client yesterday about this. his advice at such times is to not buy. But if you insist on buying, spread bet across companies in utilities, and defence.

[Brdavs]

It prolly depends on the portfolio of the respective company... if it produces utilities but invested a good portion into bonds that have (now nonexisting) coverage in US mortages you`re still pritty much fecked. That`s the beauty of the thing. Take a mortage and cos your debt got resod like 20 times you`re not only carrying the weight of your debt but that of like a dozen banks\companies\funds\investors etc. And noone is safe :drama:

 

Lession to be learned here gentlemen. If you mess up, mess up big time.

Edited October 9, 2008 by Brdavs

[Walsingham]

The spread betting takes care of the portfolio problem.

[Meshugger]

Since the economy is going down, i am seriously considering investing money on so called "Vice Funds". Strictly meaning, companies that are dealing with alcohol, cigarettes, gambling and porn. Those funds are most likely to capitalize on the current crisis. And maybe some gold ofcourse.

[Strix]

Those funds are most likely to capitalize on the current crisis.

 

Those are always likely to capitalize...

[Walsingham]

I'm nursing a hangover while I ponder this, but presumably what you want are firms that do not need large capital investments to stay profitable. Thus oil becomes shady, since most new fields will need big cash inputs.

[Nightshape]

So... Buying opportunity for stocks, or buying opportunity for canned goods and ammunition??

The latter will only be relevant in Iceland.

 

Fair point.

 

Now is a very good time to invade Iceland, I'm all for it!

[Hurlshort]

Hey guys,

 

Wall Street was just kidding. We are good now.

[Enoch]

Hey guys,

 

Wall Street was just kidding. We are good now.

Eh. Big gains, but it's a typical bear market rally. Bear rallies are like one-night stands: intense and satisfying, but they almost never last.

[Meshugger]

Or Dow Jones is just being manipulated by these guys at the moment.

 

Thank you Reagan for keeping the governement out of the economy! You know, the very thing you hated the most, right?

[Gfted1]

EU Leaders Endorse Continent-Wide Bailout

Deal Paves Way For All 27 EU Nations To Shore Up National Banks, Other Financial Institutions

 

BRUSSELS, Belgium, Oct. 15, 2008

 

(AP) EU leaders endorsed a $2.3 trillion continent-wide emergency bailout for the banking sector at summit talks Wednesday, and turned to debate other measures to prevent the global financial crisis from stalling the economy.

 

Polish Finance Minister Jacek Rostowski, along with other EU officials and diplomats, confirmed that the leaders had endorsed the plan.

 

The agreement paves the way for all 27 EU nations to shore up national banks and other financial institutions. Under the plan's broad principles, individual countries put up a total of $2.3 trillion in guarantees and emergency aid to help banks.

 

The deal comes after Britain and the 15 countries that use the euro passed the plan Sunday and it is meant to reassure still shaky financial markets and investors that all is being done to stop the meltdown.

 

The plan leaves individual nations flexibility to chose from a range of measures such as buying shares in banks and guaranteeing savings and interbank loans.

 

The European moves are modeled on Britain's euro64 billion ($88 billion) plan to partly nationalize major banks. British Prime Minister Gordon Brown has also promised to guarantee billions of euros of interbank loans to restore confidence in the financial sector.

 

The joint action, along with broadly similar U.S. plans that include taking stakes in big banks, have helped turn around severe declines in world stock markets. But credit markets remain in distress with fearful banks willing to lend to each other only at abnormally high rates, and that makes credit harder to get for businesses and consumers.

 

EU leaders were also debating a call by Brown to hold global talks among the world's top economies, including the U.S., China, India and others this year to reform the world's financial system.

 

Brown said a global summit could be held as soon as November or December. It would also aim to relaunch stalled global trade talks.

 

In a document given to leaders, Brown said he wanted banks to rethink how they deal with risk. He also called for strengthened rules covering such issues as the amount of reserves banks must hold to cover potential losses and improving transparency in financial markets.

[Hiro Protagonist]

COMRADE George W. Bush (and other countries) attempt to save the imminent collapse of free market capitalism by socialising the Banks. Long live chairman Bush. It's ironic that Government is having to clean up this mess. Capitalism turns to Government to prevent systemic failure, the same institutions of Government that capitalism spent decades deriding.

Edited October 16, 2008 by Hiro Protagonist

[thepixiesrock]

Uhh what?

[Laozi]

Lets all move our money into commodities at Pixies's house.

 

 

I call lowfat milk and table salt.

Edited October 16, 2008 by Laozi

[Rosbjerg]

Hmm tough choice.. I call the Lego castle and the Red pillow under the staircase.

 

I'm sure their value is gonna soar in the next few weeks.

[thepixiesrock]

I'm still in the process of forclosing on that Lego Castle. King Brickster defaulted on his mortgage.

[Walsingham]

I bags Pixies' belly button fluff. It's a growing asset, mates. Yarr.

[random n00b]

Argentina to nationalize private pension funds

 

Hahaha, go go socialism for the people!

[Meshugger]

Argentina to nationalize private pension funds

 

Hahaha, go go socialism for the people!

 

Castro is pleased by this. Carry on my fellow workers!

[mkreku]

I need to get me one of those beards.

[taks]

are you sure that's not one of them zztop guys?

 

taks