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- A Fed Rate Hike Won't Solve the Current Crisis
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- Economic Upswing? Check Back Next Year
- Options Trader: Wednesday Outlook
- Things You Would Never Have Said Eight Days Ago
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U.S. Markets: Is it Time to Throw Caution to the Wind? [view article]
Dear Kunst,Shame on you. I saw that but let it slide. Reply
U.S. Markets: Is it Time to Throw Caution to the Wind? [view article]
Dear Prieur,Are you telling us the Maginot Line is once again impregnable? Reply
U.S. Markets: Is it Time to Throw Caution to the Wind? [view article]
“The end is neigh”?Maybe for your horse. For humans, the word is "nigh" (near in time, place, etc.)
Hard to get past that opening.
APOLOGIES FOR THE TYPO. NOW CORRECTED - SA Editor Reply
Inflation vs. Interest Rates [view article]
Demand pull inflation is just a manifestation of an increase in the supply of money, or a decrease in the supply of goods relative to the amount of money available to purchase them. Wait a minute; these sound like the same thing. ReplyProtecting Your Wealth and Profit During the 2008 Crash [view article]
Yes, fireball, people are being hurt. But they are not being hurt by short sellers or people buying SKF, they are being hurt by the banker's incompetence and greed. I feel sorry for the people who hold financial stocks, I have watched them decline for over a year and wondered what they were thinking, and why they were holding on. Most of all, I wondered why they weren't at the corporate offices kicking some executive ass. ReplyNational Debt & Interest Payments For Fiscal 2008 [view article]
Also check out a great article on how to interpret the 2 components of the national debt - debt held by the public and intragovernmental holdings:www.geldpress.com/2008.../
Reply
ancisco
Wall Street Breakfast: Must-Know News [view article]
The earnings briefs are interesting. It would save us all a scratch pad if you ended each such listing with a summary (day and quarter to date) of beat / match / miss. Thanks, though, for this most interesting listing. ReplyU.S. Markets: Is it Time to Throw Caution to the Wind? [view article]
Yes , the investors are unconvinced .The Administration , the Treasury and the Senates are making big plans in response to the rising foreclosures and depleting financial stocks .
It is notorious that " naked " short sellings intensify to a huge extent on the depletion of financial stocks especially that of the regaional banks .
SEC has revised the rules in policing " unlawful manipulation through naked short selling that threatens the stability of financial institutions " .
Such rules become effective tommorow , July 21 , 2008 and yet these rules don't protect regional banks .
Regional banks have very little exposure to the subprime and yet their equity were in general depleted about 60% in the last three months .
Such banks have originated a lot of mortgages for Americans when they establish their homes .
For instance , Regional Financial ( RF ) is a profitable local banking network , which has been dedicated in Charity and community works , in addition running their banking business .
The stock pricing for RF was depleted from $23 in April to $ 7 in July . The stock price came back some last week and yet it is at a 56% discount from that of April , 2008 .
One invested in such banks on a long term basis and not for a quick profit , would find oneself losing so much that one could not even afford his mortgage payments .
No wonder , foreclosures are on the rise .
SEC would help to stablize the financials in a meaningful way by protecting all banks from the " unlawful manipulation " .
I trust that SEC would extend this protection rule to all banks at the soonest .
Otherwise , it would be a disgrace and a snap in face of USA .
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Inflation vs. Interest Rates [view article]
The author lacks an understanding of inflation, mistaking its consequences for its cause. Inflation and price increases are not the same thing.Inflation is merely too much money chasing too few goods. Oil prices go up because there is more money chasing the same amount of oil.
Supply/demand balance can cause price increases, but that is not inflation. In that case, money spent on oil would not be spent somewhere else, so prices for other items would fall. But when the supply of MONEY is increased, people can bid up the price of oil and still maintain demand for other items. That is inflation. All the other causes and effects in the column derive from the simple process of creating too much money.
"the dollar falling" is caused by our government creating too much money, via lower interest rates creating more credit or by simply printing it.
The home bubble of the past was created by the government/fed creating too much credit by lowering rates below what the market would otherwise have set them at, and failing to maintain reasonable lending standards. If suddenly a bunch of broke people with low incomes are told they can borrow $300K for a home, that will cause the price of homes to be bid up higher than otherwise. That abberation is currently unwinding itself.
But PLEASE. Rising commodity and oil prices do not CAUSE inflation, they are the RESULT of it. Until we get this straight there is no chance of solving it.
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Was That a Bottom? Should We Even Care? [view article]
Many good things have been stated here.Facts vs figures-please.
Fact-pigs get fat and hogs get slaughtered.
Fact-stocks in general have gone no where since 1999 bubble bursting. The market treand is your friend, which is now sideways to down.
Least we not forget going back to the start of the longest bull run which ran from 1982 to 1999.
Gee I guess I am right again -economic cycles average 17 years. Thanks again RR.
IE-I'll keep trading sideways in this bear cycle -both up and down until 2015, when the pattern will return to up agian.
Technology advancements will create a new boom cycle then(2015)-what is it?-robotics will be near perfect and affordable. Man gets displaced slowly.
The only constant in life is CHANGE.
Learn to adapt to survive. Reply
Protecting Your Wealth and Profit During the 2008 Crash [view article]
JIMMY LATHROP thank you for your concise observations. while i hate to see people getting hurt the truth is the truth. ReplyLathrop
Protecting Your Wealth and Profit During the 2008 Crash [view article]
Friend -I imagine that you bought into financial companies early in 2002 when home prices began to rise and exotic mortgage instruments drove the profit margins up for banks and mortgage companies. I also assume that you have staked a significant portion of your retirement savings on these institutions and therefore, the short selling is a personal issue, as though you are being robbed by people who do not even own the stock they are shorting.
It is hard to understand what a bank does when you are on one side of the tellers window and the "keep the change" jingle gets into your head, like the Pied Piper's tune that led the children out of their town.
After many an evening standing behind a 20 year old mortgage processor watching her electronically submit a loan application to a bank hundreds of miles away in California which approved a 500,000 loan to someone who does not speak English, has no job, nor visible means of support and yet the application is approved in twenty minutes speaks volumes of the fundamental rotten nature of your retirement savings. The short sellers did not originate these loans. The short sellers did not securitize these loans. The short sellers did not invent Auction Rate Securities. The short sellers did not extend consumer credit products to people on the fringe. All the short sellers did was point out the folly of easy credit and they were shut down by the Powers that Be.
If your retirement plan is conditioned on massive government intervention to "save" your investment, then I suggest re-allocating your portfolio to something less ephemeral and more substantive. Reply
U.S. Markets: Is it Time to Throw Caution to the Wind? [view article]
Try to contain your article to one two pages max. ReplyProtecting Your Wealth and Profit During the 2008 Crash [view article]
Very good post Jason!Many are learning that there really is no such thing as a " safe investment ".If you had bought gold stocks in the mid 90's and held them till 2000 and sold,you would have lost 90% of your investment.Central banks unloaded huge amounts of the Barbaric Metal,citing the costs of storing it and the fact it did not provide returns in interest.The central banks were also using it to actually devalue their currencies,but you would never hear them actually state that purpose.These central bankers never had to own up to their bad investment decisions from JQ public,and likely never will.Nice work if you can get it..LOL!!Regarding your position and recent history of ( SOL )Renesola,it is now trading at 17,nearly double from your 9 rec.I believe we will see this one back to its former highs,and breakout to mid 30's on good to excellent quarterly results,as was the case for the last quarter.They have the money for expansion,so no worries about a secondary offering under the current PPS like some companies have done and hurt their PPS short term.
The financials are providing some extreme trading opportunities,as are the airlines and mortgage companies.Companies like ( TMA )Thornburg,trading at 30 cents from a high of 28 dollars,provide an incredible opportunity for the risk takers out there.They are a jumbo loan brokerage,but have been caught up in the sub-prime mess,and the housing market's general decline.As this decline flattens out and begins to show signs of a come back,stocks like TMA will provide huge,and I mean HUGE!,gains over the next two years.
The airlines are in a similar situation,but it is early in their revival.Very dood trading Ops. though.Be nimble,be quick...like Jack over the candle stick...heh heh heh..
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Protecting Your Wealth and Profit During the 2008 Crash [view article]
The financials may rebound for awhile,but the fundamentals are crushed for at least 3 yrs.The writedowns will not comeback as write ups,ever..What you are seeing now is manipulation to calm the fears of the general public.A week ago,my handy man,who can't even spell his name,came to me to ask if his savings were safe in BAC.He said he had heard on tv that the banks were in trouble.He said he saw people standing in line to get their money in CA. and one man only got half....
Thats what the financial rally was about,not fundamentals. Reply