EI84mzk2E8AmuBYt0y5NY8kJU3M
nav-left cat-right
cat-right

Bailout And Rescue Plans

What is the difference between a bailout and a rescue plan? There really isn’t one. It’s just a matter of how you want to get the message across. The AIG bailout is what they were calling it, but then the government was getting too much slack for how it was being presented.
.
So when Hank Paulson went to Congress to get $700 billion to save the financial sector and the credit markets, he first called it a bailout. Then Congress went ahead and didn’t pass the bill, which in turn caused the stock market to plunge. By the end of the week they repackaged it and pitched it as a rescue plan.
.
Either way you look at it, it’s still the same thing.
.
Now it’s General Motors (NYSE:GM) and Ford Motor Corp (NYSE:F) turn. What will happen is still not clear. There is still two and a half months before Obama takes office. President Bush and Obama sat down yesterday in the oval office to discuss several things that need to be hashed out. Rumor has it that the auto industry was talked about, but neither of the men will reveal what was discussed, even though it seems that Obama’s aids have leaked the information out.
.
If we are to save this economy we will need to save jobs and create new ones. Letting the the two auto companies to fail and possibly close some or all of their factories will not help this country bounce back any quicker.
.
If we can go ahead and save the white collar jobs of Wall Street, why wouldn’t we save the blue collar ones of Main Street. What’s your opinion on this topic? I’d like to know.

Related posts

The Obama Effect In The Stock Market

Now that Barack Hussein Obama has won the election, what will it do to the stock market? At this moment no one is really sure. I will say that since Tuesday morning the Dow has lost 600 points, that’s a drop of 6% in one week.
.
During the campaign, we heard that a new President will save this economy as well as the stock market, President bush has ruined this country and many other negative comments.
.
We are to believe that President -elect Obama is exactly what this country needs to bring us back from the disaster of the last eight years. it’s not a new President that this country needs, it’s fiscally responsible policies that will save it and nothing else.
.
The markets are showing us in the last week that they are still not confident in what is presently going on in Washington. When Obama spoke last Friday, the DOW dropped 100 points, it did gain back those loses by the end of the day, but not any more.
.
Obama’s camp announced this morning that they would be making any more cabinet selections this week, which again gave more reason to feel confident.The markets were up big again today when the bell rang (+200 on the DOW),but started selling off immediately where at 1:00pm it gave back 300 points. Since then it has started to climb, but who knows where it will close at the end of the day.
.
There is still to much fear and uncertainty in the stock market and we should all be ready for anything. I don’t see good thing in the rest of this year and I’m prepared for it. If I’m wrong, well then the worse thing that will happen to me is that I’ll miss out on some gains, but if I’m right I’ll save myself alot of trouble.
.
.
P.S. Want to learn more about the stock market? take a free two week trail with Jim Cramer from TheStreet.com

Related posts

What Will Happen To The Investor Class?

investor
photo by joe shlabotnik

In this election year we have heard a lot about what will happen to the American people more than I can remember since I’ve been voting (which covers over 25 years). One of the major things being spoken about is taxes and yes it’s a topic that is discussed every election, but with the condition of the economy, it’s more important than ever.
.
I’ve mentioned in an earlier post that I’m a Libertarian (a party that doesn’t get the recognition it deserves). I believe that our federal government has gotten too big, it spends way too much money than it should. The one true way to reduce taxes is to reduce spending.
.
The reason why I bring this to light on a blog that deal solely with the stock market is that this year we could have our investments effected in ways that will hit us on many levels. If some of these ideas come to pass we may have more money pull put of the markets that will continue to cause the markets to fall.
.
Take into consideration that if any one political party was to control the Presidency, the Senate as well as Congress, they would be able to mold the laws and pass bills that could take decades to change. At the present time the Democratic party controls the Senate and Congress. With the way Congress has been sitting on their a$$ for the last two years from all the filibustering that causes the delays in decision making, we can’t afford to let most of the candidates go back to Congress to serve this country again.
.
Please be aware of the politicians that were involved with the issues that help cause the collapse of the housing market as well as the credit crisis. These candidates will most likely continue to do more of the same if they were to get re-elected.
.
As for the Presidency, below is a link to help you think of a few other things that will be effected if the wrong person is voted in office. Remember Wall Street and Main Street are one and the same. Where does average Joe have his 401K plan? On Wall Street, that’s where we all have them.

Target the Investor Class in 2009

Related posts

Not Another Manic Monday

What a day in the stock market. the day started with the big three markets in the green and continued that way throughout the entire trading period. I did expect the day to go quite different on the fact that Ben Bernanke and Hank Paulson were due to speak during the trading day. When that usually happens lately, the markets don’t react in a positive way. It was mentioned over the weekend that there will be continued international support for the financial system, with focus being on the effort to loosen the credit lending.
.
The basic material sector had a great day today. It assumed that the sector was oversold over the past week and took back some of those loses. The entire sector started in positive territory and continued to tick upward.
.
Oil also had a good day by moving up just over $4 during the day. It’s being said that the bottom is starting to show with this commodity. OPEC is expected to cut production after their meeting in a couple of days. As a matter of fact the latest news is now that they might not cut production since they need make up for the revenue from the drop in prices.National Oilwell Vargo Inc. Had a great day with a 24% gain. A stock that was beaten up for last few months after hitting a high of $92.70 back in July of this year and now after today’s gain is at $31.80 in after market trading.
.
Early in the day Ben Bernanke spoke with Congress today on the condition of the economy. He did say that he sees the economy to be weak during the next couple of quarters. He also took the time to inform Congress that a second stimulus check is something that should be considered to help the economy. I do have to say that when Bernanke speaks (in english) I still need a translator to figure what he’s really saying to us average Joes.
.
The markets looked quite strong today and continues to look that way through after market trading, but be aware that we are not out of the woods yet. Take you time and do your due diligence with any company that you want to jump into.

Related posts

Injection For The Financial Sector

Last night we were given a peek into what Hank Paulson and the Treasury Department have in their magic hat for the next stage of saving the financial sector. An injection of $250 billion to be distributed to U.S. banks.
.
We are being shown that the government is standing by what they said in regards to supporting and saving the financial sector. The official announcement is to be given at 8:00am on Tuesday by Mr. Paulson, he outlined the plan Monday afternoon to nine of the country’s leading banking institutions. It didn’t seem that this plan is a voluntary one. Paulson’s advice is that they would have to accept the government investment.
.
The banks that were involved and told how much of an injection they will receive. The breakdown is as follows: JP Morgan and Citigroup will receive $25 billion each, Wells Fargo and Bank of America each will get $20 billion (as well as another $5 billion for each of their acquisitions), Goldman Sachs and Morgan Stanley receive $10 billion each along with Bank of New York Mellon and State Street will receive $2 to $3 billion.
.
There’s a lot more to the plan than I care to get into here and since I’m posting this just after midnight Monday night, there’s still quite a bit that is unclear at this time. The one thing I can say at this moment about the news, is that there will be another up day for the stock market, especially the financial sector. Which of course makes me a happy camper since I bought Morgan Stanley Friday afternoon after it fell below $10.
.
Don’t get me wrong, I do expect the markets to go back down in due time, but there is positive news that will help the markets for the next day or so. At this time in this economic crisis, I will take advantage of any opportunity I can get my hands on. The name of this blog isn’t called beating the stock market for nothing and I will do it one stock at a time.

Related posts

The Credit And Housing Crisis Downfall

The stock market has taken a beaten for the month of September (as well as the last twelve months) and I do expect more of the same as the rest of the year. The main reason for it is the credit and housing crisis issues that have plagued us for some time now. I spoke about it before on this site and have voiced my opinion on it.
.
I don’t know where many of my readers stand on many issues, but I’m pretty sure that most would agree that this issue came about from the greedy people in the business as well as irresponsible borrowers. Some people out there feel that this issue started in the last few years and the powers-that-be are to blame.
.
What people need to do is to go and get the information for themselves because “knowledge is power”. Someone may be able to take your car or your money, but they can’t take away what you learned. Once you learn something, no one can take it from you. This is why I’m putting up this video for my readers. We as investors and traders should know the history that brought us to this problem, so we can reconize the pattern for the future.
.
This video is meant to be politically related, but it deals with the history of the credit and housing crisis. (I will tell you that I’m a Libertarian, I don’t agree completely with either the Democrats or the Republicans. I’m an American that believes in a smaller government, and less government involvement in my life). For that reason you need to watch it. If there’s anything that you dispute or disagree with being truthful, then do as the video says and Google any of the information that’s in this video. The video is almost eleven minutes long, but very informative.
.


.

Please feel free to voice your opinion on this video or if you want to vent, be my guest.
.
.
P.S. Want to learn more about the stock market? take a free two week trail with Jim Cramer from TheStreet.com

Related posts

Congress and the President Come To An Agreement Fo...

stock trading
photo by NCinDC1

It looks like the Congressional leaders and the President have come to an agreement to save the financial industry with the $700 billion that the Treasury Department has been asking for. Lawmakers pushed for joint spending controls with the Bush Administration. The Bill will go to the house tomorrow for a vote. President Bush feels that Congress will pass this Bill without any problems, He said in a written statement released today, “Without this rescue plan, the costs to the American economy could be disastrous,”
.
It seems thought that others don’t share Bush’s optimism.Capitol Hill leaders are now moving to sell it to colleagues in both parties and acknowledged they were not certain it would pass. “Now we have to get the votes,” said Sen. Harry Reid, D-Nev., the majority leader.
Of course we have Nancy Pelosi, who is always looking for a photo “op” as well as showing that she actually cares about the American people said “This isn’t about a bailout of Wall Street, it’s a buy-in, so that we can turn our economy around.”
.
The plan would let Congress hold on to half the money and force the president to jump through some hoops before using it all. The government could get at $250 billion immediately, $100 billion more if the president certified it was necessary, and the last $350 billion with a separate certification — and subject to a congressional resolution of disapproval.
.
“This is the bottom line: If we do not do this, the trauma, the chaos and the disruption to everyday Americans’ lives will be overwhelming, and that’s a price we can’t afford to risk paying,” Sen. Judd Gregg, the chief Senate Republican, told The Associated Press. “I do think we’ll be able to pass it, and it will be a bipartisan vote.” Some of the lawmakers feel that it might not pass until possibly Wednesday.
.
“This is something that all of us will swallow hard and go forward with,” said Republican John McCain. “The option of doing nothing is simply not an acceptable option.”
.
Barack Obama Of course is trying to claim credit for taxpayer safeguards added to the initial proposal from the Bush administration. “I was pushing very hard and involved in shaping those provisions,” he said.
I don’t know how we even need the other politicians in Washington when we have this man who thinks of everything for the American people (yes, I’m only joking). Sort of the way that Obama is a joke of a candidate.
.
The best part of the plan is that there will be guidelines to the fact of the “Golden Parachutes”. Executives whose companies benefit from the rescue could not get one, as well as any firm that benefits the most (receiving more than $300 million) would be taxed highly on any compensation for their top execs over $500,000.
.
I look forward to see how Wall Street views this tomorrow morning. I don’t see this being anything but a good thing throughout the week. I expect the financial sector to be up at the end of the week.

Related posts

The Bailout Continues, But What’s Next?

stock trading
photo by mikelicht

I’m not surprised that Ben Bernanke and Hank Paulson would be running to Congress to get them to rush this bill through, after all It’s the fault of the three stooges (Bernanke, Paulson and Cox) that this has gone on this long and to this extent. The two of them are warning that letting problems persist would have dire consequences for the national economy. Why didn’t they think of that last year when this was first rearing it’s ugly head. I forgot, Bernanke was in denial, he was saying last year this this was normal and expected.
.
Now they want our politicians to hurry up and get something done right a way. Which I think is funny when you think about how all Congress can rush is themselves out the door for vacation (which will happen again at the end of this week. Senator Chris Dodd D-Conn said, “We all recognize the gravity of the situation,” said Sen. Chris Dodd, D-Conn., presiding over the congressional hearing on the crisis. He said the “economic maelstrom” was caused by a combination of “private greed and public regulatory neglect.” I wish he would be more specific on names instead of saying “public and private”
.
This administration has become a joke. The SEC isn’t regulating any of these companies, we have Senator being paid off to look the other way for the last three years, Bernanke in denial for the last year, and last but not least we have Paulson (the biggest joke of them all) spending our tax dollars on this bailout. As it is we don’t have the money to save these companies, never mind the economy. I got a great idea for starters, why don’t they take all the monies that the CEO’s are going to get for their great work that they have done for the companies?
.

Related posts

In The World Of The Stock Markets

I’m sure all of us would like to have our world in better condition than it is today. The news in the stock market was what I was expecting and there should be more to come.
The financial sector didn’t continue it’s rally today for many reason that may take until next week to explain it all. What I will say is that the confidence in the stock markets is definitely not back. The DOW closed at 11,015 down just over 372 points.
.
Goldman Sachs and Morgan Stanley came up with a nifty concept to avoid the turmoil as much as possible by transforming themselves from investment banks into traditional bank holding companies. By becoming bank holding companies, Morgan Stanley and Goldman will come under the scrutiny of national banking regulators and will be subject to new capital requirements. Too bad that the investors of Goldman Sachs didn’t think of it as a good idea as of right now, but let’s see what happens in the days and weeks ahead.
.
The government has found something else to bitch about to each other than actually coming out with some real clear cut plans than just spending $700 billion of our money. I heard on CNBC tonight that that amount of money would pay off all failed mortgages that were held by Fannie Mae (I might have heard wrong, but I’m looking into it). If that’s the case why is the Treasury Dept. asking for so much? Maybe they needed some money for lunch this week, who knows?
.
The 10 day suspension of shorting over 800 financial type stocks didn’t go over too well today either. It seems that what’s the sense of buying a stock if you can’t short it so you can hedge your bet. I guess it’s not a good idea to buy into a company for the sole purpose of the value to rise.
.
The dollar lost some strength today as oil went on a 15% rally to close at $120.92 at the last trade that I saw tonight. Heating oil also jumped on the expected cold weather season that is on it’s way. Today is the first day of autumn.

Related posts

Is It Time To Bailout Of The Stock Market?

With all the talk going around about the condition of the stock market and the government planning to spend $700 billion of the taxpayer’s money to save the financial sector, it may be time to sit on the side lines for a while until the dust settles.
.
I don’t know about you, but I’m still not confident in the condition of this economy. The bailout that the Treasury dept. is looking to do is two-fold. One of course is to save the financials from their own greed and stupidity. The second is to bring confidence back to Wall Street. In the media this weekend, it been said that the two day rally has shown that the confidence has returned to a certain point.
.
I disagree. This little rally in the latter part of the week was nothing but a rouse from the smart money on Wall Street. I expecting this week to be another week from hell. Right now the Market is sitting at 11,388 points. What is that suppose to mean? Nothing. If you look at the big picture you will see that the trouble of being over-extended hasn’t gone away, it’s only become the governments problem and I’m waiting for the other shoe to fall.
.
Don’t get me wrong, I have always been a bull in the stock market and a positive person. I’m only talking like this because there is too much corruption going on in the government as well as Wall Street and I’m not confident about the economy at this point in time. I know that we will get through this nightmare but not over night. It’s going to take about 6-12 months before we see the light at the end of the tunnel. If by some crazy chain of events Obama gets elected, then I do expect this turmoil to go on longer.
.
I said in a earlier post that for the time being I’m going to be a spectator in the stock market and sell into any rally. After reading more of this weekend headlines and other news stories as well as researching the stocks that I’m in, I’ve decided to sit on the stocks that I have (there’s only a few at this time), and hold steady for the week.

Related posts