Foo - Wall Street is dying.

Bear Sterns is gone. Lehman Brothers is filing for Chapter 11. Merrill Lynch has just been bought out by Bank of America for $50 billion. AIG is tanking as we speak. Consequently, Dow has sunk 300 immediately upon opening.

Discuss.

1929 again?

Wall Street is a buyers market for those with funds in hand adn the ability to withstand a bit of risk. When the market recovers, BA is going to be a global power. The weak will go under or be acquired.

The government took enough heat over the Bear Stearns/Fannie Mae bailouts, that they have seen the light that the market is going to have to depend on itself, not on government assistance.

It will hurt a bit right now, but long term, the market will recover and we will all be better for it.

Wall Street is a buyers market for those with funds in hand adn the ability to withstand a bit of risk. When the market recovers, BA is going to be a global power. The weak will go under or be acquired.

The government took enough heat over the Bear Stearns/Fannie Mae bailouts, that they have seen the light that the market is going to have to depend on itself, not on government assistance.

It will hurt a bit right now, but long term, the market will recover and we will all be better for it.

True dat. I have some Wells Fargo, and it is doing VERY well.

Greed, arrogance and stupidity have consequences. Unfortunately, the pain inflicted on the innocent parties are part of the affected.

I've been slowly drawing down my WAMU account over the last month. I think I'm going to go close it this afternoon. They won't last the week.

Your account will be fine, just don't own any stock.

Before people start jumping off buildings:

If you have money in a bank it's fine as long as it's FDIC insured and under $100k. FDIC started after the Great Depression to make sure that banks couldn't just fold to protect the financial well being of everyone. Granted we'll probably owe China more money for it but you'll be protected. Stocks - ride 'em out.

I'm thinking of buying some stock right now actually, have a little bit in my Roth and some stocks are looking mighty tempting to throw $100 at and see if they recover.

1929 again?

it's weird to see firms that were around well before the depression going bankrupt and\or getting bought out this time around.

I didn't know streets where alive to begin with.

I didn't know streets where alive to begin with.

They are alive with the sounds of music.

They are alive with the sounds of music.

In that case, they need to die.
http://www.smiley-channel.de/grafiken/smiley/gewalt/smiley-channel.de_gewalt040.gif

Your account will be fine, just don't own any stock.

I'm not worried about getting my money eventually, but having access to it when I want it is a different problem altogether.

it's weird to see firms that were around well before the depression going bankrupt and\or getting bought out this time around.

If J.P. Morgan goes under, then I'll be very concerned.

If J.P. Morgan goes under, then I'll be very concerned.

I'm already concerned...Lehman and AIG both being in huge trouble. This aint small frye. Even if it doesn't get much worse, the good old congress of the US will start meddling and make a whole lot of legislation that won't do much good.

Laboratory diagnostic biotechnology stocks, and pharmaceutical companies.

They're a reasonably safe bet, as long as people keep getting sick. I don't see a "cure for everything" in the near future, so I'm pretty sure putting your money on disease and death is a winning ticket.

(I'm biased because I work in laboratory diagnostic biotech)

It died two years ago.

I'm already concerned right now, but J.P. Morgan is VERY old. If they start showing issues, then that clearly shows our economy is definitely tanking (and bike prices WILL go up).

30 years from now everything will be okay...Maybe I'll get to retire on time.

I'm already concerned right now, but J.P. Morgan is VERY old. If they start showing issues, then that clearly shows our economy is definitely tanking (and bike prices WILL go up).

All it shows is that JP Morgan/Chase made some bad decisions and is now paying for it.

This too shall pass, in the mean time hide under the table.

it's weird to see firms that were around well before the depression going bankrupt and\or getting bought out this time around.

Why is that weird? It's not as if things today are the same as they were. It used to be that firms were run by financially-insightful geniuses who knew how the world worked.

Today, they are run by young professionals who got their MBAs last year at Harvard and got a posh high-ranking job working for Dad. The only financial insight they have is "Gee, if I don't make this week's numbers, I won't be able to afford that new Ferrari I want." Their myopic view does not extend beyond the glass outer wall of their ivory tower overlooking downtown Manhattan, and their financial foresight doesn't extend beyond the Friday Bonus numbers they have to meet.

http://icanhascheezburger.files.wordpress.com/2008/09/funny-pictures-hedgehog-has-a-coin.jpg

Why is that weird? It's not as if things today are the same as they were. It used to be that firms were run by financially-insightful geniuses who knew how the world worked.

Today, they are run by young professionals who got their MBAs last year at Harvard and got a posh high-ranking job working for Dad. The only financial insight they have is "Gee, if I don't make this week's numbers, I won't be able to afford that new Ferrari I want." Their myopic view does not extend beyond the glass outer wall of their ivory tower overlooking downtown Manhattan, and their financial foresight doesn't extend beyond the Friday Bonus numbers they have to meet.

I think you nailed it here.

Plus many large corporations use "bankruptcy" to shed certain financial promises that have become unmanageable, such as union negotiated health care packages, retirement packages, etc. They often morph into a "new" company, or merge with another, like many of the car companies have in the past.

Why is that weird? It's not as if things today are the same as they were. It used to be that firms were run by financially-insightful geniuses who knew how the world worked.

Today, they are run by young professionals who got their MBAs last year at Harvard and got a posh high-ranking job working for Dad. The only financial insight they have is "Gee, if I don't make this week's numbers, I won't be able to afford that new Ferrari I want." Their myopic view does not extend beyond the glass outer wall of their ivory tower overlooking downtown Manhattan, and their financial foresight doesn't extend beyond the Friday Bonus numbers they have to meet.

Amen!

As far as I can tell, the single biggest problem with Wall Street is the structure of executive compensation.

Use some creative accounting to report magical fantasy earnings from the future, raise share prices, get paid, get out of dodge before the whole thing comes crumbling down around you.

Cook the books, buy worthless loans because everybody else is doing it, do whatever you want as long as the little green arrow points up. And then once the little red arrow starts pointing down, **** the little guy and his pension fund, you already got your bonus.

One of the scariest things is that the federal government has been doing pretty much the same thing for the last 25 years. That bill is going to come due before too long as well. It's cool though, Dancing with the Stars is on soon.

Bear Sterns is gone. Lehman Brothers is filing for Chapter 11. Merrill Lynch has just been bought out by Bank of America for $50 billion. AIG is tanking as we speak. Consequently, Dow has sunk 300 immediately upon opening.

Discuss.

Are they dying or just repricing to a better estimate of their net contribution to the economy?

Are they dying or just repricing to a better estimate of their net contribution to the economy?

definitely seeing examples of both.

Some people aren't that depressed

Pay attention around the 40 second mark.

Are they dying or just repricing to a better estimate of their net contribution to the economy?

That's the problem. In many cases, they still don't have a good estimate.

Wall Street doesn't ever die silly bike weenies. Not for good. It rises from the dead, makes trillions of dollars for a decade or so, and then figures out a new way to create yet another fiscal meltdown.

Amen!

As far as I can tell, the single biggest problem with Wall Street is the structure of executive compensation.

Use some creative accounting to report magical fantasy earnings from the future, raise share prices, get paid, get out of dodge before the whole thing comes crumbling down around you.

Cook the books, buy worthless loans because everybody else is doing it, do whatever you want as long as the little green arrow points up. And then once the little red arrow starts pointing down, **** the little guy and his pension fund, you already got your bonus.

One of the scariest things is that the federal government has been doing pretty much the same thing for the last 25 years. That bill is going to come due before too long as well. It's cool though, Dancing with the Stars is on soon.

You're right, but there's another problem - the whole MBA mindset where you can set record profits in every successive quarter. People have to get back to accepting a "good enough" return on investment, and get over all the stupid get-rich quick schemes that these greedy execs make up for themselves.

I think the big problem is lax regulation. And lax enforcement where regulation exists.

Some people aren't that depressed (http://www.youtube.com/watch?v=g0PT1oHaqaU)

Pay attention around the 40 second mark.

Holy crap, I just about spit tea all over my desk! You really need to give some sort of warning when you post something that funny.

Haaaaaaaaaaaa!!!

Air - that was the funniest thing i've seen in a week. :)

1929 again?

Not exactly...

Not exactly...

of course not exactly.

Some people aren't that depressed (http://www.youtube.com/watch?v=g0PT1oHaqaU)

Pay attention around the 40 second mark.

Damn, that is funny.

This "old firms going broke" thing is nothing new - Drexel Burnham, EF Hutton, Bache Securities - it happens every several years (just like financial slowdowns like today.)

of course not exactly.

mmk...

Some people aren't that depressed (http://www.youtube.com/watch?v=g0PT1oHaqaU)

Pay attention around the 40 second mark.

I wonder if one of those guys moonlights as a bear?

YouTube - Hurricane Ike - Bear Visits Galveston

mmk...

lets see, for starters there's the securities and exchange acts of 1933 & 1934. There's a lot more information much more readily available to investors/traders today then there was in 1929. There's the interwebz. There's radio and television almost everywhere now. So, there are some very substantial differences. That does not mean we can't take a bath (financially speaking). There is a fairly strong wave of confidence lost at this point....that's how it begins. I was speaking with my broker earlier and he was not having a good day, not in the least. I was looking at some purchases, and from the sound of it, I was one of two or three he was placing buy orders for.

Bears is nothing but trouble

lets see, for starters there's the securities and exchange acts of 1933 & 1934. There's a lot more information much more readily available to investors/traders today then there was in 1929. There's the interwebz. There's radio and television almost everywhere now. So, there are some very substantial differences. That does not mean we can't take a bath (financially speaking).

Sounds like you know darn well why it's not 1929. Not sure i asked for a clarification, but i'm glad i could help you walk yourself through it.

Sounds like you know darn well why it's not 1929. Not sure i asked for a clarification, but i'm glad i could help you walk yourself through it.

So are you of the opinion that it can't happen today?
If so, I've got some really nice ocean front propery in AZ I'd be happy to sell you.

Sounds like you know darn well why it's not 1929. Not sure i asked for a clarification, but i'm glad i could help you walk yourself through it.

Perhaps he should have posted a **** erotic news clip instead?

So are you of the opinion that it can't happen today?
If so, I've got some really nice ocean front propery in AZ I'd be happy to sell you.

Anything can happen, I'm just inclined to believe that it's not going to. The economy is very different than it was then.

Anything can happen, I'm just inclined to believe that it's not going to. The economy is very different than it was then.

Dow -500 points....seems to be a step in that direction.

Potential 1 Quadrillion "dollars" of derivatives unwinding could make 1929 look like kindergarten.

wow, that was a crazy day to say the least.

wow, that was a crazy day to say the least.

Not to worry.

I'll be shocked if it isn't up 550 to 600 points tomorrow, or we don't have a PPT. :)

I would be afraid of one of these falls being the "real" thing one of these days, but for now, it's "musical chairs" as usual.

Pay attention around the 40 second mark.

Bwaaahahahahahahahahaaaaaaaaaaa!