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Originally posted by marg6043
The problem with what is going on with the markets right now is affecting more and more the regular people, the regular Joe, the mistakes of the so call experts and leaders in financial matters will be rolling down the ladder to be dumped on us, our children and grandchildren.
As you know, retirement accounts are for the long term. Balances will go up and down in the short term. You know as well as I that diversifying at fixed intervals is far better for amateur retirement investors than attempting to play games with timing the market.
Anyone at 65 who has a majority (>80%) of their money in anything but bonds is probably beyond any help in terms of financial advice. If they refuse to take it out, let them be punished. They should know better. You can't afford to play the markets when you don't have a long time horizon. Of course, if that 100% is just 20% of his money, I don't see a problem with it.
As you have said, interest rate cuts help consumers who carry debt, while it punishes those of us who like to save.
When we come out of a recession - as we will - this will be a interesting research thread. I wait to see how all the doomsday prophets will try to explain it away, I'm sure when we come out I'll be told that the real financial armageddon is during the NEXT recession.
Originally posted by HimWhoHathAnEar
Major rating agencies are holding off downgrading bond insurers MBIA and Ambac Financial Group while they attempt to work out a bailout plan, bankers working on the bailout told CNBC.
States and cities that issue municipal bonds, meanwhile, could see their own bonds downgraded because of questions about the insurers' ability to back up those bonds.
Banks could also be hit. According to Meredith Whitney, banking analyst at Oppenheimer, U.S. financial institutions could face fresh write-downs of as much as $70 billion if the bond insurers lose their top rating.
For that reason, the issue of downgrading bond insurers has become politically sensitive.
These Rating Agencies are putting themselves up for future litigation. When the collapse of these bond insurers happens, they will be held to account. Since it was their job to keep ratings up to date.
As the piece goes on to say, Documentation has been turned over to the SEC claiming that both insurers are grossly understating losses. Which could be as much as 12 Billion each.
Originally posted by HimWhoHathAnEar
reply to post by LightinDarkness
It's the fundamentals! They haven't changed. I wouldn't depend on Wall Street to see what's coming. Their Bipolar behaviour of late says it all. They don't know what the hell is going on. I mean, what was it, a 600 point wild swing the other day and something akin to it today.
The Economic news is plain to see. Housing, unemployment, etc. The market is a poor indicator of what's really going on. After all, it's what they do! Of course they're gonna look for reasons to invest in something, anything. It's really all they have. It's Denial.
Wild swings speak to me of uncertainty. That and the mistrust and opacity in the Banks says it all. The Sheep won't know till they've run off the cliff. The Street is just a side show IMO.
Originally posted by cpdaman
Perhaps this is a culmination of a system rotten from it's inception, perhaps it was a poor system as history will show, w
[edit on 31-1-2008 by cpdaman]
US economy loses jobs for first time since 2003, The US economy lost 17,000 jobs in January in a surprise drop in employment for the first time in over four years, government data showed Friday in a fresh sign of brewing economic trouble.
Initial claims for state unemployment benefits rose 69,000 in the week ended Jan. 26, reaching 375,000, the Labor Department reported Thursday. It marked the highest level since early October -- and the biggest weekly jump since September 2005 in the wake of Hurricane Katrina. Read government release.
The 24 states holding primaries in next week's Super Tuesday have lost 1,568,600 manufacturing jobs in the seven years since President Bush took office, according to statistics provided WND by the Alliance for American Manufacturing, or AAM
Originally posted by antar
I hope this fits in here but it is significant.
My Brother is closing on his house today and just recently went through the sale of his last. The Title company from the first sale a few weeks ago has closed their doors forever. Now the one that he went through today also closed forever this afternoon. He has also heard of one other in his area in the past week.
Over-the-counter (OTC) derivatives are contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange or other intermediary. Products such as swaps, forward rate agreements, and exotic options are almost always traded in this way. The OTC derivatives market is huge. According to the Bank for International Settlements, the total outstanding notional amount is USD 516 trillion (as of June 2007).
Massachusetts Secretary William Galvin said he is seeking to take away Merrill's profits from a transaction in which it sold collateralized debt obligations to Springfield, Mass.