Live By the Sword, Die By the Sword

[akhalteke]

laugh it up soldier boy...

 

my dad is 70, he's worked his whole life and wants to just sit back and ski some...

 

its fine when you're young and can wait this out...what are folks that are retirement age supposed to do???

 

Wait 3 months?

[prole]

Yeah, get fragged.

 

Fragged? Oh, you must be one of those pathetic pimple-faced nerds that plays computer games depicting what I do for a living. You know how many times that I have heard/used that phrase in my live of work? Fucking zero homey. If you really want me "fragged" that badly. I will be at Sea-Tac 15 December 08 at 2100. Have fun with the counter strike kiddo... and go easy on the hot pockets and mountain dew.

 

Must be a generational thing.

[tvashtarkatena]

Someday, the rest of the nation will rise up and spear kill all the progressives who've been practically begging for it for quite some time.

 

I may be the thing that brings us re-unites us.

[prole]

Someday, the rest of the nation will rise up and spear kill all the progressives who've been practically begging for it for quite some time.

 

I may be the thing that brings us re-unites us.

 

I'll wait for the edited version...

[bstach]

my dad is 70, he's worked his whole life and wants to just sit back and ski some...

 

its fine when you're young and can wait this out...what are folks that are retirement age supposed to do???

 

My condolances to your dad. But as its been said, retirement age folks should be light on equities, heavy on bonds and t-bills. For what its worth, look at the previous crashes. In most cases the market was back up a year later. The world isn't coming to an end.

 

[Hugh Conway]

My condolances to your dad. But as its been said, retirement age folks should be light on equities, heavy on bonds and t-bills. For what its worth, look at the previous crashes. In most cases the market was back up a year later. The world isn't coming to an end.

 

You mean like the 1929 crash? Oh, that bottom came in 1933 and the gains didn't return until the 1950s

[Braydon]

retiring's for old people...can't tame this stallion!!!

 

"Retirement is waking up in the morning with nothing to do and by bedtime having done only half of it."

 

Edited October 8, 2008 by Braydon

[prole]

My condolances to your dad. But as its been said, retirement age folks should be light on equities, heavy on bonds and t-bills. For what its worth, look at the previous crashes. In most cases the market was back up a year later. The world isn't coming to an end.

 

You mean like the 1929 crash? Oh, that bottom came in 1933 and the gains didn't return until the 1950s

 

And one world war later...

[RuMR]

shut up scott...

 

is that a little more clear??

[tomtom]

For what its worth, look at the previous crashes. In most cases the market was back up a year later. The world isn't coming to an end.

 

The Japanese stock market closed today at less than a quarter of its value from 1989.

 

One of the problems there was hyperinflated property prices and bad mortgages used to pay them.

 

Hmmm.

[bstach]

My condolances to your dad. But as its been said, retirement age folks should be light on equities, heavy on bonds and t-bills. For what its worth, look at the previous crashes. In most cases the market was back up a year later. The world isn't coming to an end.

 

You mean like the 1929 crash? Oh, that bottom came in 1933 and the gains didn't return until the 1950s

 

Yup, you have to go all the way back to 1929 to find a crash that didn't recover all the stock market losses within 2 years.

[bstach]

For what its worth, look at the previous crashes. In most cases the market was back up a year later. The world isn't coming to an end.

 

The Japanese stock market closed today at less than a quarter of its value from 1989.

 

One of the problems there was hyperinflated property prices and bad mortgages used to pay them.

 

Hmmm.

 

The Japanese situation is materially different in a few key ways:

 

1) Their population is in decline

2) US is a country in debt to foreigners, while foreigners are in debt to Japan

3) Relative to the massive debt fueled consumer spending in the US, Japan is a country of savers

 

I don't see the deflation that happened in Japaqn happening here...when liquidity is poured into the market it settles into hard assets. I'm waiting for the real estate crash to hit rock bottom, then its "buy, baby, buy". Its probably pretty close to bottom already in places like Florida and Las Vegas, but its hard to say. Commoditites will do well, too, but likely will be more volatile than real estate.

 

[STP]

For what its worth, look at the previous crashes. In most cases the market was back up a year later. The world isn't coming to an end.

 

The Japanese stock market closed today at less than a quarter of its value from 1989.

 

One of the problems there was hyperinflated property prices and bad mortgages used to pay them.

 

Hmmm.

 

As details of Treasury Secretary Henry Paulson's plan to revive the U.S. financial system by pumping as much as $700 billion into the markets emerged Sept. 19, bond investor Michael Cheah was reminded of Japan.

 

When that country's real estate bubble burst, leaving a trail of bad real estate loans, officials flooded the economy with cash only to see banks hoard the money instead of lending it out. The result has been a series of recessions and persistent deflation for more than a decade.

-- Treasuries Prove Irresistible as Deflation Bet Trumps Paulson (Bloomberg)

 

Money-Market Rates Climb as Banks Hoard Cash, Crisis Deepens

 

Another Reason for Cash Hoarding: Big Credit Default Swaps Market Test Imminent

 

...Fannie Mae and Freddie Mac auctions on October 6. Then, Lehman is settled on October 10, and Washington Mutual is scheduled for October 23.

Settlement day approaches for derivatives

 

Credit markets are based on trust and when there is no trust, markets can freeze up . . . . Imagine yourself at the drive-thru ordering a Big Mac. At one window you order and pay, at the other – 20 feet ahead – you pick up your lunch. What if you thought that after paying at the first window, your 1000 calorie sandwich might not be waiting for you a few seconds later. You might not pay; business as usual might not take place. That is what is happening in the credit markets. They are frozen in “McFear.” After the failure of Lehman Brothers – an investment bank which took orders at one window, and promised to pay at another for trillions of dollars of those CDS, swaps, and other derivative “sandwiches” – institutional investors said that they’d prefer to stay at home and have peanut butter instead of risking their money ordering a Big Mac. And so their money goes into that figurative mattress instead of the register at McDonald’s, people are laid off, profits go down, bank loans become less available, our economic center cannot hold.

Nothing to Fear but McFear Itself

 

 

 

 

[tomtom]

Credit markets are based on trust and when there is no trust, markets can freeze up . . . . Imagine yourself at the drive-thru ordering a Big Mac. At one window you order and pay, at the other – 20 feet ahead – you pick up your lunch. What if you thought that after paying at the first window, your 1000 calorie sandwich might not be waiting for you a few seconds later. You might not pay; business as usual might not take place. That is what is happening in the credit markets. They are frozen in “McFear.” After the failure of Lehman Brothers – an investment bank which took orders at one window, and promised to pay at another for trillions of dollars of those CDS, swaps, and other derivative “sandwiches” – institutional investors said that they’d prefer to stay at home and have peanut butter instead of risking their money ordering a Big Mac. And so their money goes into that figurative mattress instead of the register at McDonald’s, people are laid off, profits go down, bank loans become less available, our economic center cannot hold.

 

You could learn something from Don Gorske, then. He keeps a few Big Macs in the freezer for times of uncertainy. Big macs every day for 23 years.

 

Problem solved.