Out Of Touch!, Wallstreet, Investors & the Gov.

In my opinion, the following article shows just how out of touch he goverment, the media and our own president is about Wallstreet and investing:

http://www.latimes.com/business/la-fi-stoc...0,7579168.story

So, now that we have prop'd up Wallstreet and the banks we now need to launch an investigation about Thursdays mysterious drop in the stock market and how we can protect investors from this happening again.

Am I missing something. Investors???? By the very nature investing is a risky business and I can not believe that we are now going to protect investors from a drop in the stock market that by all accounts is caused by the current market turmoil and condition going on in Europe. Not only that, but we are still not out of the woods yet with our own economy.

The bull market since February is nothing more than a pipe dream and a correction is in order. But the president is going to use his powers to protect us from having a drop in the stock market again because we all know what that does to poll numbers.

Bubble gum politicians need to go and we need people in office that are going to fix the problems, not meddle in everyones affairs and make matters worse if they had just let the cards fall where they should fall.

MacFive,

I understand your point about interfering with the system, as long as the system is allowed to be be as free as possible. I took from that article and other news that there is some concern that automated orders, computer glitches, and perhaps human error may have contributed largely, but not totally, to this drop. That would be an unfair risk to an investor that has nothing to do with markets and more to do with the machinery. I think it is wise to determine if such is the case and work on prevention of such a problem if possible. If, on the other hand, this is caused by investor speculation and action, I agree it should be left alone.

The investigation is now turning toward illegal market manipulation as no one has admitted an error and more than one stock was involved. While somewhat less than a trillion dollars vanished at the end of the day from the pockets of the average investor, though the actual losses are impossible to determine, well over a trillion maybe much more was made on shorts and strategic buy's. The big loosers were pension funds.

There was a tremendous amount of cash sitting outside the markets doing nothing and that amount just grew considerably. "Wall Street" is fast becoming a dirty phrase" in the minds of many past investors. Money is now flowing into the bond market where at least interest will be paid.

Silver has tripled in the last 5 years and and gold may continue to do quite well.

The markets are similar to a high stakes poker game.

Should controls be placed on trading that protect all participants you can expect Wall Street to leave the US for a more friendly environment and at the very least, NY will be financially decimated. If there are no controls, the average investor will eventually loose all to the big players.

I am glad that my investments no longer involve the stock market though as it rises and falls it has a minor effect on my holdings.

Slàinte,    

Patch    

It kinda reminds me of the mindset before the Great Depression when Americans where investing in the stock market like it was a sure win.

I was watching the stocks on Thursday when the dropped happened and it appears to be that someone pulled the plug as I have never seen stock prices stuck on one price for 45 minutes.

I am told they did just that with select stocks. Or at least they slowed down the trade rate which would have backed up those stocks receiving the heaviest trade. One stock actually went from over $40.00 a share to a penny. That too is reminiscent of the 29 crash. By the market close the "penny" stock was back to it's original price. That too is a first!

There is talk amongst traders that the obscene profits of the day may be negated by rescinding the trades leading to those profits. That would be a first so I really do not expect it. Were it done it would make whole the pension funds and such that suffered considerable losses.

I am told that some corporations are considering selling bonds as opposed to stocks. The thought being that bonds are less volatile though it costs more to issue bonds.

Again, I am glad I am not in the market! My initial investment in metals has appreciated so much more than the markets that I am hesitant to state the % of gain. I would not recommend it now as the metals markets have been relatively stable in the last few months. (though spot prices could continue to rise, I just do not know.) It will become a bit problematic if I should need it as income.

Those interested should watch the trade volume. If the volume keeps falling people are getting out and the money is going elsewhere. Maybe that should give one pause for thought, I just do not know.

Slàinte,    

Patch