Show-me Account Talk

[JTH]

You can buy again before funds settle, you just can't sell the new shares until the cash was settled on the old ones.

Great point I should have mentioned. I just didn't have enough settled funds to buy anything in the quantity I wanted. But I did convince the wify to bump up our contributions to the ROTH, so every payday I'll have a little more to play with.

 

[Show-me]

The news is coming out that this is going to cost $500 billion plus to bail out. There had better be strict stipulations to this bail out or I say let'em all fail.

Looks like I should have exited today. O'well, easy come, easy go.

http://biz.yahoo.com/ap/080919/financial_meltdown.html

AP
Radical bailout plan has a jawdropping price tag
Friday September 19, 9:41 pm ET
By Tom Raum and Jeannine Aversa, Associated Press Writers Bush administration lays out radical financial bailout plan with a jawdropping price tag
WASHINGTON (AP) -- Struggling to stave off financial catastrophe, the Bush administration on Friday laid out a radical bailout plan with a jawdropping price tag -- a takeover of a half-trillion dollars or more in worthless mortgages and other bad debt held by tottering institutions.

 

[Corepuncher]

JTH,
A small price to pay when you can control you destiny. Margin accounts of $25,000 or more you can day trade. My next TSP loan will go there, maxing the loan out thanks to FRTIB.

Show me...being that I have missed out on about 11% in gains I surely would have had, I'm starting to get pissed off. What can I possibly do...I don't have cash laying around, but could take out a large TSP loan. However, the payment would be quite high (about 2% of the balance over a 5 year personal loan).

I suppose I could withdraw it, set aside enough to get me through several months of payments, then pay it back when I'm done?

For example, if I did a 50,000 loan...my payment would be 915 per month. I could bring my TSP contributions down from 10% to 5%, and the extra 5% would save me say 300 a month off that so my effective payment would drop to 615 a month.

So if I wanted to play around for a year lets say...that means I need to set aside 7380 out of the 50,000...leaving me 42620 to "play" with. Similarly, I could save 2 years worth and play with 35240 instead. When the 1 or 2 years are over, I pay the rest back, and hopefully have profit left over.

I'm just a little leary to take the plunge. So many different platforms, fees, etc...I don't know what is best. Plus, I don't know what kind of account...for example, would it be a retirement account, what kind, etc. And if I were to do a roth or something, would i be penalized for taking it all out after 1 or 2 years? The complexity of all this (really the plethora of decisions to be made) has me at a standstill.

 

[Show-me]

"You give them good cash; they give you the worst of the worst," Sherman said of the plan, which he complained that Bush and his economic advisers were trying to panic lawmakers into rubber-stamping.
Paulson rejected Democrats' calls to include tighter regulations, corporate reforms or limits on executive compensation as part of the measure, Sherman said. "He's doing his best to paint a picture of the sky falling, and then he says, because the sky's falling, you have to do it my way."
Paulson said the new troubled-asset relief program that he wants Congress to enact must be large enough to have the necessary impact while protecting taxpayers as much as possible. "I am convinced that this bold approach will cost American families far less than the alternative -- a continuing series of financial institution failures and frozen credit markets unable to fund economic expansion," Paulson. "The financial security of all Americans ... depends on our ability to restore our financial institutions to a sound footing."

Don't give them a inch! I want to know what we are buying and that the executives, board members, and preferred share holders are not taking the tax payer for a ride.
What is to guarantee the credit market will loosen up anyways? Who has any savings or is willing take on a mortgage now? It will take years to dry up the existing homes on the market and first the lenders want perfect credit scores, good paying jobs, and 20% down. Good luck on that one!

 

[nnuut]

Listen if they want to make money they will back off of that, but not be stupid. Things will change. A GUARANTEE!

 

[Birchtree]

They are trying to save the at risk population. It's the politically correct thing to do - that's why the Donkey Congress is going along with this plan - they want to keep their constitutency happy and able to vote. It's so obvious when only 3% of the population has caused this problem.

 

[Show-me]

Corepuncher,

I took the plunge this year and am glad I did. I pulled out enough to fully fund mine and the wifes Roth IRA's for 2007 and 2008.

Many will give the argument that you are wasting the tax deferred benefit by using a TSP loan. Not entirely true. I look at it this way if I borrow $10,000 from a bank I loose the interest. If I borrow it from TSP the interest goes to me and all I am out is the $50 fee. Now I can invest at will without FRTIB restrictions.

I'm basically leveraging my account with my money. I like the Roth because I won't pay taxes on it again and with all these bail out taxes will go up. Count on it. Bye, bye, cheap capital gains and ordinary income tax.

My Roth's are up over 39% and at one time were up over 60%. My Traditional IRA is up over 31% with this last KOL trade. I plan to convert my Traditional to Roth next year to avoid the higher taxes to come. I just can't believe my taxes are going lower. No way, no how!

I adjusted my contributions back to 5% until I pay off the loan and then as soon as the 90 days are up I plan to MAX out the loan this time. I will fund what ever is short cash and the rest will go into a Individual account or a taxable IRA.

Until the FRTIB gives us a viable and decent way to invest my money I have to do the loan program. Look at all the B&H and L fund folk that wanted to retire this year. Don't listen to FRTIB they don't have your best interest in mind.

 

[nnuut]

They are trying to save the at risk population. It's the politically correct thing to do - that's why the Donkey Congress is going along with this plan - they want to keep their constitutency happy and able to vote. It's so obvious when only 3% of the population has caused this problem.

I thought I said that?:nuts:

 

[justbizness45]

Re: Don seems a bit angry but makes good points.

That may be the understatemnt of the week.

 

[Show-me]

They are trying to save the at risk population. It's the politically correct thing to do - that's why the Donkey Congress is going along with this plan - they want to keep their constitutency happy and able to vote. It's so obvious when only 3% of the population has caused this problem.

What about the lenders, builders, realtor's, appraisers, etc. that perpetuated and took advantage of the problem. Three percent of the population did not invent CDO's, MBS's, derivatives, etc. Stick it to the corporations that have had record profits the last 10 years.

The financial institutions are ultimately to blame they wanted the fast money and did not mange their risk exposure. They are the one flooding the TV, radio, internet, and mail with offers for mortgages and credit cards. They did not do the proper background checks to make sure their customers could make the payment.

Selling a $750,000 home to a person that makes $150,000 with a interest only loan is not a good investment choice.

Let the tax payer make some money on them for a change, we debt to pay down.

 

[Show-me]

The thing that really ticks me off is that when it is all said and done it is still going to fall down like a house of cards. They are just trying to get through the election before it does.

 

[Show-me]

The new four horsemen.

The new four horsemen.

 

[Show-me]

You think Paulson is thinking I'm way smarter than you and you're President.

 

[Birchtree]

You make all valid points. What we need to do now is concentrate on this market going forward - I'll be in the C fund for the next three years so that part is easy. For the bulls to take full control here, they will have to move the NYSE breadth MCSUM above the zero line and then take out the summation failure point of last July. We have to move above the +100 level on the MCSUM and preferably above the +250 level. Above these levels an intermediate term uptrend is underway. I wouldn't dump that C fund too soon. This market is going to break out of its funk and very few will be on board - baby bull on board.

 

[RPM]

This is the same scare tactics they use for Iraq. We are all terrorists/non patriotic if we don't blindly agree with them...

Rule by fear - democracy anyone???

If I were paranoid, I'd say that the GOB (good old boys) are pulling a fast one to privatize gain in the last few months before the new administration, and let the shoes drop on the other guy

Don't give them a inch! I want to know what we are buying and that the executives, board members, and preferred share holders are not taking the tax payer for a ride.
What is to guarantee the credit market will loosen up anyways? Who has any savings or is willing take on a mortgage now? It will take years to dry up the existing homes on the market and first the lenders want perfect credit scores, good paying jobs, and 20% down. Good luck on that one!

 

[RPM]

The news is coming out that this is going to cost $500 billion plus to bail out. There had better be strict stipulations to this bail out or I say let'em all fail.

Looks like I should have exited today. O'well, easy come, easy go.

http://biz.yahoo.com/ap/080919/financial_meltdown.html

Paulson already spent more than that in the last few months/weeks with BS, Fannie and Freddie, and AIG. I think a systematic approach to solving this problem has to take place, the devil is in the details to ensure that those crooks don't get rich on us, AGAIN!!!

 

[Show-me]

That's right don't bail them out give the 25 cents or less on the dollar for the high risk bad paper. NOT ONE FRACTION OF A INCH! We buy the crap at fire price just so you can get it off your book, but it's going to hurt first. Your earning will reflect very badly this next quarter. Otherwise let'em burn! I know were my money is.

 

[Show-me]

The Week Ahead

The Week Ahead

Last Update: 19-Sep-08 12:04 ET

The main focus in the coming week will be testimony from high-ranking financial officials regarding the current financial turmoil.

Fed Chairman Ben Bernanke, Treasury Secretary Henry Paulson, Securities and Exchange Commission Chairman Christopher Cox and Federal Housing and Finance Agency Director James Lockhart will testify on the government takeover of Fannie and Freddie and other financial issues before the Senate Banking Committee on Tuesday at 10:00 AM ET.

Bernanke then testifies on the economic outlook before the Joint Economic Committee Wednesday at 10:00 AM ET. Finally, Bernanke, Paulson and Lockhart will testify before the House Financial Services Committee at noon on Thursday.

There are only six reports scheduled on the Economic Calendar, including existing home sales, new home sales and the final release on Q2 GDP.

The Earnings Calendar will receive limited attention with only nine S&P 500 companies confirmed to report their quarterly results. Some of the bigger names include Accenture (ACN), KB Home (KBH), Nike (NKE) and Research In Motion (RIMM).
________________________________________________________________

Monday, September 22:

• Earnings: AutoZone (AZO), CarMax (KMX), 3Com (COMS)
• Economic Data: None
• Events: General Mills (GIS) annual shareholder meeting... Nike (NKE) annual shareholder meeting
• Conferences: American Bankers Association Annual Conference (Day 1 of 3)... Credit Suisse Group Economic Forum (Day 1 of 4)... UBS Global Life Sciences Conference (Day 1 of 4)
• Fed Speakers: Dallas Fed President Fisher speaks on the economy and financial industry (11:30 AM ET)

Tuesday, September 23:

• Earnings: FactSet (FDS), Lennar (LEN), Worthington (WOR)
• Economic Data: None
• Events: Fed Chairman Bernanke, Treasury Secretary Paulson, SEC Chairman Cox and Federal Housing Finance Agency Director Lockhart testify before Senate Banking Committee regarding government takeover of Fannie Mae and Freddie Mac and the credit market turmoil at 10:00 AM ET.
• Conferences: American Bankers Association Annual Conference (Day 2 of 3)... Credit Suisse Group Economic Forum (Day 2 of 4)... Deutsche Bank Securities Leveraged Finance Conference (Day 1 of 4)... Merrill Lynch Global Consumer Conference (Day 1 of 2)... UBS Global Life Sciences Conference (Day 2 of 4)
• Fed Speakers: None

Wednesday, September 24:

• Earnings: Bed Bath & Beyond (BBBY), Nike (NKE), Paychex (PAYX)
• Economic Data: Existing Home Sales (Aug.)
• Events: Lowe's 2008 Analyst Conference... Weekly Crude Inventories (week ended Sept. 20)
• Conferences: American Bankers Association Annual Conference (Day 3 of 3)... Credit Suisse Group Economic Forum (Day 3 of 4)... Deutsche Bank Securities Leveraged Finance Conference (Day 2 of 4)... Merrill Lynch Global Consumer Conference (Day 2 of 2)... Merrill Lynch Global Power and Gas Conference... UBS Global Life Sciences Conference (Day 3 of 4)
• Fed Speakers: Fed Chairman Bernanke testifies on economic outlook before Congress Joint Economic Committee (10:00 AM ET)

Thursday, September 25:

• Earnings: Discover Financial Services (DFS), Accenture (ACN), Research In Motion (RIMM)
• Economic Data: Durable Goods Orders (Aug.)... New Home Sales (Aug.)... Weekly New Unemployment Claims (week ended Sept. 20)
• Events: Fed Chairman Bernanke, Treasury Secretary Paulson, Federal Housing Finance Agency Director Lockhart and Housing and Urban Development Assistant Secretary Montgomery testify before the House Financial Services Committee regarding government takeover of Fannie Mae and Freddie Mac and the credit market turmoil at 12:00 PM ET... Northwest Airlines Shareholder Meeting
• Conferences: Credit Suisse Group Economic Forum (Day 4 of 4)... Deutsche Bank Securities Leveraged Finance Conference (Day 3 of 4)... UBS Global Life Sciences Conference (Day 4 of 4)
• Fed Speakers: Chicago Fed President Evans and ECB board member Gonzalez-Paramo give opening remarks at Chicago Fed's annual international banking conference (10:40 ET)... Fed Governor Warsh gives keynote speech at Chicago Fed banking conference (1:00 PM ET)... Dallas Fed President Fisher speaks to New York University Money Marketeers Club (7:30 PM ET)... ECB board member Gonzalez-Paramot at Chicago Fed banking conference (7:45 ET)

Friday, September 26:

• Earnings: Jabil Circuit (JBL), KB Home (KBH)
• Economic Data: Final Second Quarter GDP... Revised University of Michigan Consumer Sentiment (Sept.)
• Events: None
• Conferences: Deutsche Bank Securities Leveraged Finance Conference (Day 4 of 4)
• Fed Speakers: St. Louis Fed President Bullard to speak on economic outlook (10:00 AM ET)... ECB council member Wellink speaks at Chicago Fed banking conference (1:15 ET)

--Ryan McShane, Briefing.com
http://www.briefing.com/GeneralCont...vestor&ArticleId=NS20080919120538LookingAhead

 

[Show-me]

I would say that any earning or economic data will be trumped my any news from the four horsemen and the Congress.

Also, someone brought up a good point this morning and I'm sorry I can't remember who it is. Chart analysis will be out of skew now that they changed the rules of the game. The internal dynamics of the game have been changed with the no shorting rule in place.

This will be a interesting week. After two enormous up days we should see a pull back or at least some consolidation. The chart is horribly off balance with the 80 point range it had over the last two days. Once this starts to sink in the player will take the profits. I'm surprised it did not happen at the end of the trading day, but then again the market needs to hold up until Congress hammers out the bail out bill.

 

[Show-me]

12th bank failure of the year announced

Regulators close down Ameribank Inc., a West Virginia-based-bank with total assets of $115 million

By Catherine Clifford, CNNMoney.com staff writer
Last Updated: September 19, 2008: 8:48 PM EDT

NEW YORK (CNNMoney.com) -- Ameribank Inc. was shut down on Friday by the Office of the Thrift Supervision, making it the 12th bank this year to go under.

http://money.cnn.com/2008/09/19/news/companies/ameribank_closure/?postversion=2008091920