Does anyone have any idea what will happen if the banks do end up becoming nationalized? A good portion of my holdings are in the financial sector and I keep thinking there's more good buys out there. Will Gov ownership infuse new cash and help them rebound or are the shares going to be worthless?
Nobody knows, but a good bet would be that sharholders interests would be compromised. In a pure nationalization, the govt admits that the bank(s) is bankrupt, but, instead of going to a bankruptcy court, the govt takes over the bank to keep the system functioning. In a bankruptcy, the shareholders are wiped out. Thus, it becomes politically difficult to give the shareholders any relief in that process.
Why report all this and not report the end of the day results . . . dow down 100 points. I think you are enjoying bad news. Me, I could care less, just like the the home buyers who got themselves in trouble, if you gave all your money to those fellow on wall street . . . well, accept that these things happen on wallstreet. I don't trust the whole lot of them. I like shooter's idea, pull your money out and find somewhere else to invest.
Is being down 100 points and 600 since the signing of the bill good news? Also, investing money isn't going to mean much once the inevitable inflation starts to hit us. Unless you start investing in canned food, I suppose.
I'm not the one who pretends to know more about the economy than the president and his advisers, am I?
I was wondering why you kept posting how the dow was going lower and then you stopped when the dow started going up again. And you are saying teh president needs to be more positive, but you are being extremely negative about the future. Are you suggesting the president should lie to us . . . because the Bush days are over.
Where did I say I knew more about the economy? Although is Obama's doing a nice job following the Alinsky model, and that has nothing to do with reviving the economy. I'm amazed at how quickly things are happening.
The problem with the USA is as Americans we dont stand up for ourselves. We sit back and complain until we are screwed. Yes I wanted Obama in office but he has changed his role since being there and until we come together and actually stand up for ourselves we will continue the path of counting on someone else to fix things which will never happen in a corporate world.
Inflation? The whole mess we are in is from fear of Deflation. Banks are scared to loan money on assets that will be worth less tomorrow then they are worth today.
Bingo! It is foolish to think that a single person or group of people (president and government) can fix and create economies. We need to be able to stand up for ourselves. It is interesting that so many people are opposed to the details of the bailouts, mortgage bills, etc... but they keep getting signed and passed. I don't feel that our representatives are doing a very good job representing the people.
March is off to a rip-roaring start for the markets. DJIA down below 7000 for the first time since 1997, -230 for the day after 3 hours of trading. Good thing we're going to implement cap and trade, dramatically reform healthcare, and nationalize the banks.
Hey, all I want is things to be equal and "fair". Who cares if that results in less for everybody, and everybody being equally miserable. At least things are equal! It is about a populist principle, not what is best for the country.
The principal of this really bothers me...Why are taxpayers bailing out those who cannot afford thier mortgages? This is how those who struggle to meet thier financial obligatons and those who showed financial restraint are rewarded? You know the 95%+ of people who pay thier mortgages on time. I listened to some of the financial people talking on TV and they were saying that...even at a 2% mortgage rate that 40% of the people in trouble with thier mortgages STILL couldn't afford them... That is ridiculous.... I still don't understand why an across the board mortgage rate cut...down to 3% or so...isn't being considered? Give EVERYONE the chance to refinance, even those who are making thier mortgage payments...and many of whom are struggling to do so... Federal budget is 25% of GDP today....Is anyone else not concerned with this percentage growing higher as each year passes? Does no one else see the inevitable problems this causes?
