Thread: XL-entLady's Account Talk

Originally Posted by XL-entLady

"Art Hogan, chief market strategist at Jefferies & Co., described this as the biggest economic crisis since the Great Depression of the 1930s and the railroad bankruptcies of the 1800s. "We've never witnessed this before," said Hogan earlier in the morning, before Bush's speech. "There's no road map for this."
http://money.cnn.com/2008/09/15/news...ex.htm?cnn=yes

Y'all be careful out there!
Lady

Always a joy to read your posts and hear your input.

In a crazy way it's a little amuzing because the Goverment has kept things hidden as long as possible (hoping for some miricle but knowing it's getting worse). Even our 2 next possible Presidents have very close ties to Fannie/Freddie and so the deception has to prevail. Anyway, I can imagine Art's surprise when it all came out. GL Lady.

Originally Posted by Steadygain

Always a joy to read your posts and hear your input.

In a crazy way it's a little amuzing because the Goverment has kept things hidden as long as possible (hoping for some miricle but knowing it's getting worse). Even our 2 next possible Presidents have very close ties to Fannie/Freddie and so the deception has to prevail. Anyway, I can imagine Art's surprise when it all came out. GL Lady.

Steady,

You should not/can not blame the Gov't. This is the financial institutions fault. They were trying so hard not to write down all their bad investments. Bank of America will probably come out of this as the leading commercial bank becuase they were very aggressive with their write downs. The ones that failed or are failing can look back and wonder what would have happen if they to had been aggressive.

One trillion dollar balance sheets with only 200-300 million assets is very high leverage. One can not throw risk management out the window just to make the shareholders happy with high returns.

Blame the CEO's and the Board's for all this turmoil not the Gov't.

Originally Posted by ATCJeff

Steady,

You should not/can not blame the Gov't. This is the financial institutions fault. They were trying so hard not to write down all their bad investments. Bank of America will probably come out of this as the leading commercial bank becuase they were very aggressive with their write downs. The ones that failed or are failing can look back and wonder what would have happen if they to had been aggressive.

One trillion dollar balance sheets with only 200-300 million assets is very high leverage. One can not throw risk management out the window just to make the shareholders happy with high returns.

Blame the CEO's and the Board's for all this turmoil not the Gov't.

Jeff,
When dealing specifically with the financial sector I (FIRST) blame the underlying machinery that's responsible for the American Mentality of Endless Debt, minimal to no savings, and allowing and promoting such things as "the Housing Sector" bubble to occur.

The Government/FED would have to be the ones most responsible to oversee sound decisions; and to insure the underlying foundation remains strong.

I applaud the Government for taking over Fannie/Freddie - who make the others look insignificant - and here it's unfortunate that we (as a country) had to wait to enact this change; but such is our legal system that protects Private Ownership.

My comment about Government's Deception is referring (in this circumstance) only to the Lobbyists from Fannie/Freddie (for instance) that are strongly connectly with (M) and (O). If (M) was to rid himself of any ties to Fannie then his most inner circle would disappear. (O) is in a similar position. So here I simply mean that both will present themselves to the highest degree possible as being different from the others; offering something new and not getting caught up in the same trap (when they are in the trap already).

What you say about the Banks themselves - is an understatement. The ones who came up with the Garbage Loans must have had links to bigger Banks (Financial Institutions). I would first go after them and expose them across the networks and they would rot in prison and then burn in hell. So it's not all the Government's fault; but all Banks; Financial Institutions are under the Government's/FED's watch and the BULK OF THIS SHOULD HAVE STOPPED SOON AFTER IT STARTED.

Originally Posted by Steadygain

Jeff,
When dealing specifically with the financial sector I (FIRST) blame the underlying machinery that's responsible for the American Mentality of Endless Debt, minimal to no savings, and allowing and promoting such things as "the Housing Sector" bubble to occur.

The Government/FED would have to be the ones most responsible to oversee sound decisions; and to insure the underlying foundation remains strong.

I applaud the Government for taking over Fannie/Freddie - who make the others look insignificant - and here it's unfortunate that we (as a country) had to wait to enact this change; but such is our legal system that protects Private Ownership.

My comment about Government's Deception is referring (in this circumstance) only to the Lobbyists from Fannie/Freddie (for instance) that are strongly connectly with (M) and (O). If (M) was to rid himself of any ties to Fannie then his most inner circle would disappear. (O) is in a similar position. So here I simply mean that both will present themselves to the highest degree possible as being different from the others; offering something new and not getting caught up in the same trap (when they are in the trap already).

What you say about the Banks themselves - is an understatement. The ones who came up with the Garbage Loans must have had links to bigger Banks (Financial Institutions). I would first go after them and expose them across the networks and they would rot in prison and then burn in hell. So it's not all the Government's fault; but all Banks; Financial Institutions are under the Government's/FED's watch and the BULK OF THIS SHOULD HAVE STOPPED SOON AFTER IT STARTED.

Bravo!!!!

Your best post to date.

Mornin' all,

I've been touching base with my friends around corporate America, and they're all curled in a corner hugging their security blankies ..... Nobody told me to pull all my money and hide it in my mattress, but several said to stay as liquid as I could. And they all said to make sure that I had a month or so of expense money directly at hand.

Hm-m-m-m. I remember 1987 and it didn't feel as cold and exposed as this does. Y'all be careful out there folks!

Lady

Originally Posted by XL-entLady

Mornin' all,

I've been touching base with my friends around corporate America, and they're all curled in a corner hugging their security blankies ..... Nobody told me to pull all my money and hide it in my mattress, but several said to stay as liquid as I could. And they all said to make sure that I had a month or so of expense money directly at hand.

Hm-m-m-m. I remember 1987 and it didn't feel as cold and exposed as this does. Y'all be careful out there folks!

Lady

Lady, Sorry for not telling you about the market. I guess I assumed that everyone knew...Steady has been pulled out for awhile and I really scaled back last week to the G. I too remember 1987, but as I said in another post, I had NOTHING to fear because I had NOTHING saved. Your exposure is always related to amount. 10% of 1,000 never seems as painful as 100,000. I hope you can recoup quickly!

Keep the faith. Everything is cyclical. Just be there when it comes back around.

Yeah, back in 87 I was still trying to live on $400/month, had no $ in the market whatsoever, and as a newbie Fed with a few months of TSP under my belt it was all in G (my 1%) anyway. We've come a long way, baby. Lady, take care.

Originally Posted by Frixxxx

Lady, Sorry for not telling you about the market. I guess I assumed that everyone knew...Steady has been pulled out for awhile and I really scaled back last week to the G. I too remember 1987, but as I said in another post, I had NOTHING to fear because I had NOTHING saved. Your exposure is always related to amount. 10% of 1,000 never seems as painful as 100,000. I hope you can recoup quickly!

Thanks for your concern, Frixxx! I feel very lucky that I had friends tell me this was coming. I've been in G Fund for the last month. At first, I was quite ambivalent about staying clear out of equities, but I decided to do it because I've had to be away and sequestered so much lately. Wow, am I glad I listened!

For the last month, that little G penny has been a warm, soft and fuzzy comfort!

Lady

Back in October of '87, I was 11 years old and in 6th grade.

So I'm trying to figure out a way of being proactive in this reactive financial environment. F Fund is the only TSP fund that is trending well. I know how to make an income/balance/cash flow statement sing arias to me. But I don't know F Fund.

Of course the basics: Equities and bonds are a see-saw and usually when one is up the other is down. I know that F Fund tracks the Lehman Brothers US Aggregate Bond Index and is a compilation of credit accounts, government-backed accounts, and asset backed securities.

But that doesn't give me a warm fuzzy feeling, since Lehman tanked, and credit accounts are souring, and some asset worth is being downgraded daily. So I need to learn more about F Fund before I feel comfortable dabbling in that fund.

Is there a thread here or an external site that someone can recommend for me to study? Alevin, you're an astute student of this game, do you have suggestions? L2R, you can always point people in the right direction, what do you suggest?

Thoughts, comments, opinions and suggestions from anyone would be gratefully appreciated!

Lady

With bond yields hitting their lows, the F fund is not where you want to be. This market can bounce at any moment. When it does, the F fund will get killed. Sure, you might make some money as the market continues to sell off, but IMO, it's not worth the risk.