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[kkaabboomm]

Goodness BOA.

eh?

 

[FrankT]

eh?

Stealth release, although I guess it could have been a lot worse and the dividend could of been wiped in total.

 

[Javaman]

Would a rate cut really even help get the cashflow going? The banks are holding tight onto whatever money they have and I would think the loans would need to be more profitable to the lender before they'll let another bank have any.

 

[Tarazet]

Would a rate cut really even help get the cashflow going? The banks are holding tight onto whatever money they have and I would think the loans would need to be more profitable to the lender before they'll let another bank have any.

In theory, it would make it cheaper for them to get money from the Feds, which they could then turn around and lend to other people at lower rates, voila profit. Of course it won't work that way, they'll get the voila profit but they won't lower their rates.

 

[jamesinclair]

Zecco is offering 0 fees this month...

My question is, if I have stocks + cash with them, and they go under.... what happens to my portfolio?

 

[Tamanon]

Zecco is offering 0 fees this month...

My question is, if I have stocks + cash with them, and they go under.... what happens to my portfolio?

It's guaranteed up to a pretty high ceiling.

 

[jamesinclair]

It's guaranteed up to a pretty high ceiling.

By who? It cant be the FDIC can it?

 

[Tamanon]

I wanna say SIPC, but I could be off. I'm pretty sure the limit is $250k.

 

[Tarazet]

I wanna say SIPC, but I could be off. I'm pretty sure the limit is $250k.

$100K in cash, $500K in securities, plus they're backed by Lloyd's of London on top of that up to $35M.

 

[Tamanon]

I knew it was up there. My general rule of thumb about financial security is that if you have to ask if your money is insured, then it is. Just because if you get that high to have to start juggling accounts to guarantee, you'll have had that talk with your financial advisor/accountant/broker.

 

[speculawyer]

$100K in cash, $500K in securities, plus they're backed by Lloyd's of London on top of that up to $35M.

But the bail-out bill raised it to $250K

 

[speculawyer]

Bush says rescue plan will take some time to work
By JENNIFER LOVEN, Associated Press Writer 50 minutes ago
CINCINNATI - As Wall Street reeled and global markets plunged, President Bush on Monday said the U.S. economy is going to be "just fine" in the long run. But he cautioned that the massive rescue plan will take time to work.

On another jittery day in the financial markets, the president made two rounds of unscheduled comments on the economy — first after meeting with small-business owners in San Antonio, and then at the top of a speech in Cincinnati about judicial nominees.

In both cases, he defended the $700 billion economic bailout plan as one that won't just help Wall Street, but everyday workers and businesses, too.

"I believe that in the long run, this economy is going to be just fine," Bush said. In the short term, he said the Treasury Department must go about enacting its plan to buy up troubled assets from financial firms so that credit will start flowing again to consumers.

If Bush wanted to help things, he should come out and say "I dunno if this is gonna work . . . these egghead guys tell me it is gonna fix things, but I dunno." Given his approval ratings, such reverse psychology may work.

 

[Tarazet]

But the bail-out bill raised it to $250K

That was the FDIC. Brokerages are insured by the SIPC.

 

[speculawyer]

That was the FDIC. Brokerages are insured by the SIPC.

Never mind then. That's what I get for jumping into the middle of a conversation. :lol

 

[jamesinclair]

I knew it was up there. My general rule of thumb about financial security is that if you have to ask if your money is insured, then it is. Just because if you get that high to have to start juggling accounts to guarantee, you'll have had that talk with your financial advisor/accountant/broker.

Yes and no. In this case, 100k in cash and 500k in securities is much, much more than Id need.

However, because online traders like Zecco and etrade and such are so new, I was worried they might be in a no insurance loophole.

 

[dionysus]

Someone mentioned buy F earlier. Hell no. Right now the only companies that aren't sells at this point are companies without a lot of cash and no need to service a lot of debt. Ford is the exact opposite of that, they are leveraged to the hilt.

Not to mention that 30% of the car market was removed when every company had to stop offering leases, consumers aren't buying cars, and people don't want the cars Ford makes.

Both GM and Ford kill overseas, but it doesn't matter because the US market is killing them way more. They can't compete with overseas companies who have non-unionized factories in America and thus their labor costs are less than half of Ford, GM, and Chrystler. You know

 

[WingM@n]

So whats next ? DOW up tomorrow ? Or some new suprises in the making?
BTW I hear here and there that the Bank of America is in trouble.

edit: Well it seems they are still okay, but third quarter profits shrunk 68% compared to last year.

 

[Tarazet]

Not to mention that 30% of the car market was removed when every company had to stop offering leases, consumers aren't buying cars, and people don't want the cars Ford makes.

Huh??

 

[toxicgonzo]

So whats next ? DOW up tomorrow ? Or some new suprises in the making?
BTW I hear here and there that the Bank of America is in trouble.

edit: Well it seems they are still okay, but third quarter profits shrunk 68% compared to last year.

Dead cat bounce. I'm hoping anyways

 

[RumblingRosco]

I'm just holding on to everything I have, and hoping at least some dividends remain over the next few years so I can just collect and add it to my decent amount of banked cash... which I'll slowly be throwing at the stock market over the next few months as the markets continue to collapse.

Everything just looks so delicious right now, it's hard to resist.

 

[DeadTrees]

Huh??

I think he's referring to GM, Ford, and Chrysler, all of which have cut back on or ended financing new car leases.

 

[Ether_Snake]

Nikkei down 515 points right now, under 10 000.

 

[Ovid]

I did alright today despite the downturn in the market. Bought SanDisk when it went on sale at around $16 with a limit order. It finished up after hours at $18.53.

 

[teh_pwn]

Nikkei down 515 points right now, under 10 000.

Wow. I've been kicking myself lately for deciding on adding a European index fund to my IRA from last year, because it has gone down 35%. But if Nikkei is any indication, Japan is doing worse.

 

[Ether_Snake]

Worst is I'm not getting the promotion I was hoping for, so far anyway, still sometime to go before I know for sure. :|

I have close to a month of paid vacation after I finish the current project, which is great and all, but I don't like the idea of being on vacation while the markets are dying. I feel like I'll come back to work only to find out that most people not currently on big projects are laid off. If I could just not take them I'd keep them until the economy is better, but the studio doesn't like it if we don't use our vacations between projects.

Plus right now I'm trying to figure out what project I should go on. I'm trying to reduce the risk by looking at the worst possible scenario; projects canceled, only the ones with potential high returns to be continued. One of the two projects that would 100% certainly stay in production in such a scenario I'm unable to go on right now because access is limited, the other one is one I'm not interested but is probably the second most important project right now.

Argh, this is happening at the worst of times.

If I lose my job, when I'll get another job eventually it looks like I'll have to go the ass-kissing route. I always thought that having talent and doing a damn good job would allow me to make my way through a company, but it turns out this is not the case.

I have a meeting tomorrow, I'll try to work something out, but I don't see much chances of a promotion. No promotion=risky position.

 

[Ovid]

What do you guys think the markets will be like tommorow?

 

[Ether_Snake]

BTW

Fed Sets Floor Below Rate Target, Engineering `Stealth' Cut

The Federal Reserve may have cut borrowing costs today without actually saying so.

The central bank used authority granted under last week's financial-rescue legislation to effectively set a floor under its main interest rate that's lower than the 2 percent target set by policy makers last month. The Fed may now pay interest on bank reserves while it floods financial markets with liquidity, pushing down the overnight lending rate by about 0.75 percentage point to 1.25 percent.

``Absolutely, it's a stealth easing,'' said John Ryding, founder and chief economist of RDQ Economics LLC in New York and a former Fed researcher.

The announcement, and a Fed decision to double the auction of cash to banks to as much as $900 billion, failed to avert a 3.9 percent decline today in the Standard & Poor's 500 Index. The index has tumbled 28 percent this year even as the central bank has expanded credit more than at any time in seven decades, including a 3.25 percentage-point cut in the main rate during the past 13 months.

 

[toxicgonzo]

Good news for today:

"Wall Street looked to recover Tuesday from a huge sell-off the previous session, with investors hopeful that central banks around the world will cut interest rates to help alleviate turmoil in the credit markets."

source: finance.yahoo.com

 

[Kifimbo]

Good news for today:

"Wall Street looked to recover Tuesday from a huge sell-off the previous session, with investors hopeful that central banks around the world will cut interest rates to help alleviate turmoil in the credit markets."

source: finance.yahoo.com

They are ready for their new heroin dose. Let's see how long this one will last.

 

[kathode]

Futures just took a big jump on news that the Fed is going to buy up some short-term corporate debt. Dow futures up over 90 right now.

 

[Date of Lies]

Futures just took a big jump on news that the Fed is going to buy up some short-term corporate debt. Dow futures up over 90 right now.

Roubini really is a god. All his predictions came true. Scary...



Anyone have suggestions on what to buy? GE? GS? I'm looking to make a 5-10% day trade return today.

btw: where do you check futures?

EDIT: I'm buying some GE and holding it for an 2-3 hours

 

[kathode]

btw: where do you check futures?

I usually just type in "futures" into my google bar, and depending on the day, the CNN or Bloomberg futures page comes up near the top, and you can check them there. I also usually have Bloomberg TV on before I leave for work and they scroll by all morning until open.

Don't have any good recommendations for today. I don't feel good jumping in unless I feel reasonably sure I know what will happen tomorrow. I really have no idea, so it's a little too volatile for me right now.

 

[Date of Lies]

man this isn't a good rally at all yet. What the hell, the government buying commercial paper is amazing news. Either the market is confused or it's all trader speculation.

GE went up with the market for 10 minutes, now there's a selloff in the Dow, it's down.

EDIT1: Upturn! (man day trading's stressful)

 

[Tarazet]

Barclays plunged 20% the day after I sold the put. Don't I just have all the luck?

 

[lil smoke]

so the guys that bought AAPL that other day before the storm.... curious, do you still have it?

I'm still in there. 110.8894 down to 93.65 as of now. Might as well hold it now.

 

[dionysus]

I think he's referring to GM, Ford, and Chrysler, all of which have cut back on or ended financing new car leases.

I used some hyperbole, but close to accurate. You really can't get a lease for a Japanese truck or SUV either even though they haven't officially announced ending the program. Also, leasing terms across the board are a lot tougher, bigger downpayments for one.

 

[gkryhewy]

so the guys that bought AAPL that other day before the storm.... curious, do you still have it?

I'm still in there. 110.8894 down to 93.65 as of now. Might as well hold it now.

I would hold. Whenever the market tries to rally, AAPL jumps a fair bit. After an eventual bottom, it'll recover dramatically.

 

[kathode]

so the guys that bought AAPL that other day before the storm.... curious, do you still have it?

I'm still in there. 110.8894 down to 93.65 as of now. Might as well hold it now.

Yeah still holding. No point in selling at this point. I'm hoping it gets some boost if they finally talk about the new Macbook Pros this month. Don't plan on being in it that long though, but likely through the end of the year.

 

[mackaveli]

Wow. I've been kicking myself lately for deciding on adding a European index fund to my IRA from last year, because it has gone down 35%. But if Nikkei is any indication, Japan is doing worse.

what platform you use to trade on after hours?

 

[FrankT]

What in the world is going on with Morgan Stanley today.

 

[Date of Lies]

What in the world is going on with Morgan Stanley today.

This shit is downright scary sometimes.

 

[Tarazet]

Dow closes down ~500 points. Barclays (BCS) lost 21.98%.. I bought two $20 calls at a $1200 discount from yesterday.

 

[Date of Lies]

Screw this bear market. If news of the government buying commercial paper isn't enough to get the market to stop falling even for just a day, times really are bad. I should have staid on the sidelines.

 

[Gaylord Sweetwood]

On the topic of the 250K FDIC insurance, I wonder what negative effects this will have. I mean where will we get the extra money for it? It's like me having a 50K life insurance policy and then upping it to 100K. Don't you think there going to want me to pay the increased premium? Bad policy is bad.

 

[dionysus]

Screw this bear market. If news of the government buying commercial paper isn't enough to get the market to stop falling even for just a day, times really are bad. I should have staid on the sidelines.

Perhaps we saw capitulation today. ^VIX was at 53.

Also, what we are seeing right now is a unwinding of a bubble in hedge funds combined with people with liquidity staying on the sidelines. I always figured the wealthiest people were intelligent, but apparently they were just as bad as the mortgage flippers/speculators who bought ARMs. Now that hedge funds aren't returning 20% a year, they are all running for the hills. Moreover, the leveraged business model of hedge funds is becoming less and less viable.

 

[dionysus]

On the topic of the 250K FDIC insurance, I wonder what negative effects this will have. I mean where will we get the extra money for it? It's like me having a 50K life insurance policy and then upping it to 100K. Don't you think there going to want me to pay the increased premium? Bad policy is bad.

It's worse without it. The average bank that takes deposits has 20% of its deposit base above and beyond the 100k limit. So what was happening at WaMu was a run on the bank of just the wealthy who had over that limit. No bank can redeem 20% of its deposit base. By upping the limit, you reduce the uninsured amount and reduce the chance of runs on all banks, thus probably reducing the amount the FDIC will have to pay out.

 

[FrankT]

Market wants a coordinated rate cut I don't know if it's necessarily needed, it might be. I do however believe the ECB desperately needs to cut rates and cut them fast.

 

[Gaylord Sweetwood]

It's worse without it. The average bank that takes deposits has 20% of its deposit base above and beyond the 100k limit. So what was happening at WaMu was a run on the bank of just the wealthy who had over that limit. No bank can redeem 20% of its deposit base. By upping the limit, you reduce the uninsured amount and reduce the chance of runs on all banks, thus probably reducing the amount the FDIC will have to pay out.

Well from a historical standpoint, upping it from 30K to 100K had a negative effect, one that we still haven't paid for if I read about it correctly.

Basically it's a bad move, we are broke, have no savings, soon won't be able to borrow any money from the rest of the world and upping the FDIC insurance can cause more risk-taking. I don't know, I'm not a fan.

 

[gkryhewy]

Basically it's a bad move, we are broke, have no savings, soon won't be able to borrow any money from the rest of the world and upping the FDIC insurance can cause more risk-taking. I don't know, I'm not a fan.

According to your worldview, we're completely fucked anyway, and will be defending our tomato patches with knives in a few months. You might as well roll with a minor policy revision like this.

 

[Gaylord Sweetwood]

According to your worldview, we're completely fucked anyway, and will be defending our tomato patches with knives in a few months. You might as well roll with a minor policy revision like this.

Yeah well, the axing of "minor" stuff like this can be beneficial. It all adds up.