Why are people freaking out and selling stocks like mad?! - Page 3 - PeachParts Mercedes-Benz Forum

Local2ED · #31 08-08-2011, 11:36 PM

Quote:

Originally Posted by Hatterasguy

"to buy while blood is running in the streets"
Rothschild

http://www.rothschild.com/

As the ill informed are jumping, how much you want to bet these guys made a killing today in all the global markets?

Come on where is that 80's enthusiasm, we need more Gorden Gekko's, greed is good and he would be eating this up.

So Gordon, what are you buying and how much?

Emmerich · #32 08-09-2011, 12:08 AM

The financial market is a zero sum game. You might lose, but someone else gained. Its like gravity-its the law.

duxthe1 · #33 08-09-2011, 12:15 AM

"Why are people freaking out and selling stocks like mad?! "

Two things move the markets: fear and greed.

Right now, the herd is in the grip of fear.

aklim · #34 08-09-2011, 12:22 AM

Quote:

Originally Posted by Emmerich

The financial market is a zero sum game. You might lose, but someone else gained. Its like gravity-its the law.

Anytime you feel like you want to lose and let someone else win, go ahead. Problem is nobody wants to lose and none of the people doing the trading want to lose for their clients. Everybody was nuts when Madoff made them money. When they found out that they lost, well, we found that they didn't take the loss as well as the wins.

pj67coll · #35 08-09-2011, 12:32 AM

Quote:

Originally Posted by aklim

What stupidity is there in this case? I'm sorry you don't like their opinion but we, as a nation, have been spending way beyond our means and this is a reflection of it.

Actually, I agree with their opinion. I'm well aware that we have been spending way beyond our means. But to dig ourselves out of this hole will require intelligent financial planning and the ability to cut spending and raise taxes both. Their anti tax-increase ideological dogma is as stupid as the spend as if it doesn't matter philosophy that has gotten us into this mess in the first place. Reason is what's needed here, not religion and the tp's are religious zealots not rationalists.

They are the ones with the inability to deal with what they don't want to hear, namely that tax increases are necessary. That inability is childish and will cripple the US as it attempts to move forward.

- Peter.

Hatterasguy · #36 08-09-2011, 12:45 AM

Quote:

Originally Posted by Emmerich

The financial market is a zero sum game. You might lose, but someone else gained. Its like gravity-its the law.

Sarcasm?

elchivito · #37 08-09-2011, 12:45 AM

Rachel Maddow made an interesting point tonight. S and P stated outright that they were downgrading the credit rating of the U.S. due in part to gridlock in congress. The S and P rating warns that the U.S. may not be quite as sure a bet on paying off on it's debts....Treasury Bills....as it once was. Where did all those nervous nellies who sold today put their money? Treasury Bills

Hatterasguy · #38 08-09-2011, 12:48 AM

Oh the irony.

Botnst · #39 08-09-2011, 07:56 AM

Quote:

Originally Posted by Emmerich

The financial market is a zero sum game. You might lose, but someone else gained. Its like gravity-its the law.

If that assumption were true then the market couldn't expand.

Put another way, how does the market expand in a zero-sum game?

boneheaddoctor · #40 08-09-2011, 08:11 AM

Smart people are snatching up stocks while the prices are down.........not selling them at a loss.

MS Fowler · #41 08-09-2011, 08:34 AM

Quote:

Originally Posted by Dee8go

When everybody else is afraid and running for the doors, that's the time to wander in and buy your investments at fire sale prices. People always overreact to both good news and bad. The time to sell is when everybody is rushing in to buy.

STOCKS ON SALE!!

kknudson · #42 08-09-2011, 08:47 AM

Quote:

Originally Posted by Emmerich

The financial market is a zero sum game. You might lose, but someone else gained. Its like gravity-its the law.

Not true.
Some components are, mostly deriatives.
Stocks themselves are not zero sum.

Dee8go · #43 08-09-2011, 09:12 AM

Quote:

Originally Posted by kknudson

Not true.
Some components are, mostly deriatives.
Stocks themselves are not zero sum.

I one sense it is true. For every loser there is a winner in the immediate sense. If you buy and hold, you get capital appreciation through growth in the business you've invested in.

If you're a day trader or someone who invests as if the market was a casino, you are essentially trading dollars back and forth with other like-minded "investors."

aklim · #44 08-09-2011, 09:21 AM

Quote:

Originally Posted by pj67coll

Actually, I agree with their opinion. I'm well aware that we have been spending way beyond our means.

But to dig ourselves out of this hole will require intelligent financial planning and the ability to cut spending and raise taxes both.

Their anti tax-increase ideological dogma is as stupid as the spend as if it doesn't matter philosophy that has gotten us into this mess in the first place. Reason is what's needed here, not religion and the tp's are religious zealots not rationalists.

They are the ones with the inability to deal with what they don't want to hear, namely that tax increases are necessary. That inability is childish and will cripple the US as it attempts to move forward..

Then what is your quarrel with them? They are right to express skepticism, are they not?

Intelligence isn't the answer to everything. I am intelligent enough to know that Ia 100# overweight and I need to do something about it BUT somehow, I lack the will. I can't resist the twinkies and I can't get off the couch. What we, the people lack is the discipline to change that. We elect officials to "kick the can" further down the road as long as it is good today and finally it has come home to roost.

Hence the issue. I don't want the party to stop and I will vote for anyone who tells me that it is time to stop. You won't vote for anyone who will increases the taxes to pay for our toys, assuming that it is possible. These are the messages we send to congress. Can we blame them for their actions? This is kinda like us not buying oranges at the local fruit stand and when they don't carry it, we gripe.

I have to say that they do have a point. There is much waste. For instance, a report I read indicated that 40 cents of the tax money for highway improvement went to road repair. Assuming they were not totally accurate, we can say for the sake of argument that it was more like 60 cents. What happened to the other 40 cents? Also, we had a huge windfall with the Tobacco settlements. Supposed to be used for one thing and yet nobody knows what happened to it. Fact is, the govt has money but is squandering it in all directions. This is like me coming to you asking for money when I am throwing lavish parties, buying new cars, etc, etc. Govt isn't being thrifty. Simply giving it more taxes is like giving a lazy worker more responsibilities and a larger paycheck.

If they were really out of money, I would be willing to entertain more taxes personally. However, looking at the way they spend it, I can't be as supportive. Do YOU give your kids more money simply because they say they need it? If it was your kid that needed money to tide him over a bad spot, I'm sure you'd cooperate and give him what you could. OTOH, if you find that he is broke because he has been spending part of his money on booze, dope, hookers and gambling, I;m sure that next time he comes round asking, you too would be hesitant.

pj67coll · #45 08-09-2011, 10:33 AM

Quote:

Originally Posted by aklim

Then what is your quarrel with them? They are right to express skepticism, are they not?

You're argument beyond this point has become a redundant red herring.

Re-read what I wrote previously. They are not expressing skepticism, they are gridlocking the ability to government to function in a childish and immature way. They will do more harm than good unless they grow up soon.

- Peter.