I was layed off July 26th after being with my company for 16 months, I had about 3400 in my 401k that was vested, on friday alone it dropped to 2861, I cashed out everything on friday, I just dont trust what is about to happen. I think it might be ok for a little while to let everyone either stay in stocks or transfer back into them, then they pull the rug out from underneath us and steal everything.
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Prices already beat down. I doubt we see a big drop. May even attract a lot of bargain hunters and end higher.Comment -
More comments from a respected advisor:
Surprise!!! As all are aware by now, Standard & Poor’s lowered the boom after Friday’s market close, cutting the rating of US Debt to AA+ from AAA. That action has the globe’s markets in turmoil this morning, as investors scurry wildly about, searching for safety in a world gone mad. Reaction on the part of the US Administration has been to question the firm’s rationale for the downgrade, denigrate it’s validity, and deny that its madcap spending has any responsibility for the consequences. In other words, shoot the messenger and ignore the message. The President, quick to appear on TV to take bows for what he perceives to be any accomplishment, has been holed up in Camp David this weekend, uncharacteristically silent on the chaos. Indeed, he is so out of touch with reality that, even in the face of the furore, he’s embarking tomorrow on a rock band style campaign bus jaunt through the heartland; what one wag has deemed the ‘Obamination Tour’.
As this is written, shares have plummeted 3% in overnight futures, the Dollar has sold off, Treasuries have firmed and gold has soared to over $1,710/oz. One might wonder why US Bonds have become more desirable, after being downgraded. The simple answer is this, even though their value, in terms of the purchasing power of the Dollar, is diminished, they are not in danger of default. Why? Because the Dollar remains (for the nonce) the world’s reserve currency and the Treasury can simply create any amount needed on demand, to pay interest and principal. Yet and still, this event is a watershed moment, which will no doubt create calls for a sort of Bretton Woods II conference to substitute a basket of major currencies for the Dollar in order to fill that reserve role. Lacking such a meeting, eventually the world’s commodities markets will take it upon themselves to price their products in something other than Dollars. The day that gold is priced in Yuan will mark the demise of the US as the globe’s major financial player, and end the national debt Ponzi scheme.
Was the downgrade deserved? Any objective observer, looking at fiscal facts, would come to the conclusion that an even lower rating might be more appropriate. As S & P noted in their analysis, the utter incapability of the US governing bodies to reverse the trajectory of increasing deficits, and the looming magnitude of unfunded entitlements in the area of $100 trillion, left them no choice. The puny efforts resolving the Debt Ceiling impasse last week did nothing to alter that dynamic (as noted in the W/A Market Commentary of 8/1/11). The blow to national self esteem that this unprecedented evaluation has delivered cannot be overestimated. US politicos and their sycophants in the press blather on ad nauseam about ’American Exceptionalism’, but those days are long since gone, since the nation has evolved into pseudo socialistic entitlement state. In truth, de Tocqueville himself would find the America of today unrecognisable. In his monumental study of this nation in the 1800’s, he noted with approval the self reliant nature of the populace and its indomitable optimism, hardly what one would observe today. Indeed, the nation is exceptional mainly in its profligacy.,
With all that said, what will be the near term environment for shares and gold? As noted above, the knee jerk reaction has been to sell stock at any price and to buy gold, again price be damned. Even at this hour however, the SPX futures have bounced at 1161 and are back above 1172. So, shares may be making a panic bottom. Gold however, shows no signs of slowing and a blow off near term top may have to wait until today’s US markets open. Trading today will be difficult, in any case. Hold all present positions and await developments.Comment -
John you really think that anyone in their right mind will be buying anything today? Bargain hunting? At the end of this week the Dow Jones will be much less than what it is at the start todayComment -
Looking at Dow futures as we speak, cannot see more than a 300 point drop like it is right nowComment -
So John you still think we are gonna end higher and I'm not seeing any bargain hunters coming in, it was pretty much a 90 degree drop straight down for every company since the startComment -
starting to look real uglyComment -
Would have been a lot better to see it down 700 at open and climb back up to -150 or so for the day. We will see what happens late day but my guess is that we will see as much or more selling near the close.Comment -
Getting murdered today.Comment -
Looking like i sold too early thoughComment -
down 350 now, fuk!Comment -
looks like the stocks are coming back up a little bit, only -245 now, maybe they end at 0Comment -
John your bargain hunters comment and maybe end up higher comment might be the dumbest quotes said by anyone todayComment -
FAZ is going to shoot through the roof tomorrow. Buy BAC $4 puts right now. I just bought 300 BAC contracts at $4 put. AIG is going to sue BofA for 100 billion. BofA will drop another 15% tomorrow. FAZ will probably reach 90 bucks a share by thursday.Comment -
where in the world are you getting 1700 from until? I cashed out 2861, how did you end up dedcuting 1100 off that and figure out what I got?Comment -
It's 10 billion, not 100 billion. Nice call on the BAC, FAZ combo. I was short BAC and covered at 7.07
didn't know it would collapse further. There's a real chance BAC can go bankrupt later this year. Everybody I know who had an account with them has since moved to other banks or credit unions. I hear they keep charging random fees and their customer satisfaction is awful. They're also up to their necks in MBS's...ouch. Thain and Moynihan had the easiest jobs in the world but somehow they messed it up! 
I wish I got on FAZ when I picked in back at the $51 level
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Threw a extra zero in there. Yea the FAZ/BAC combo is always great to use since there always inverse of each other. I took a big position on a $4 dollar put on a 8 day contract. The value has already doubled in a few hours. I will probably end up getting screwed. if i can get close to the strike price tomorrow i can sell the contract for about a 200% gain.
It's 10 billion, not 100 billion. Nice call on the BAC, FAZ combo. I was short BAC and covered at 7.07 didn't know it would collapse further. There's a real chance BAC can go bankrupt later this year. Everybody I know who had an account with them has since moved to other banks or credit unions. I hear they keep charging random fees and their customer satisfaction is awful. They're also up to their necks in MBS's...ouch. Thain and Moynihan had the easiest jobs in the world but somehow they messed it up!
I wish I got on FAZ when I picked in back at the $51 level
I dont see them going bankrupt,Comment -
its def not 25% on all my money so I wont be taking anywhere near a 35% lossComment -
Still holding onto IDCC at 250 shares. I am worried though. Buyout better happen soon.Comment
