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        New Message Board Archives >> 2007 General Board Posts >> Stock Market Slump
        
(Message started by: BlueMeanie on Aug 4^th, 2007, 12:39am)

Title: Stock Market Slump
Post by BlueMeanie on Aug 4^th, 2007, 12:39am

Just wondering if anyone else is getting worried about the stock market. I've lost 10% of my retirement in the last 2 weeks. :(

Every time Mr. Bernanke comes on the news, he says everything is fine and is not going to lower the rates. I find it hard to believe when mortgages foreclosures and debts keep climing, along with the largest housing slump in decades, that everything is fine. When is this guy gonna get his head out his ass and get this market back on track. I don't want to work until age 75. :o

Title: Re: Stock Market Slump
Post by Maffumatt on Aug 4^th, 2007, 12:46am

Another bad sign, rail car utilization is falling. All of our customers are screaming for space. Bad sign for the economy, if they are in storage, commodities aren't being moved.

Title: Re: Stock Market Slump
Post by BMoneeTheMoneeMan on Aug 4^th, 2007, 3:06am

on 08/04/07 at 00:46:34, Maffumatt wrote:

Another bad sign, rail car utilization is falling. All of our customers are screaming for space. Bad sign for the economy, if they are in storage, commodities aren't being moved.

Why are the cars sitting in storage and the customers cant find space to move goods?

The market goes up, the market goes down. Your retirement may have lost 10% last week, but it was up 20% so far this year. The market goes up, the market goes down. So far this year the market is up more than 6%. At this pace, we'll finish up 10% for the year. Historically speaking, that is an outstanding return.

Its tough to know when the shit will hit the fan. One would think that with personal savings falling below 0%, debt at the highest level ever, the dollar losing so much value, hyper-inflation hidden by fuzzy math and a host of other reasons that the shit would hit the fan pretty soon. However, we keep changing how we report on the economy to make it sound good.

When the M3 Money Supplies looked dire, we stopped publishing them. Rather than DO something about it, we decided to stop looking at the number.

:-/

Title: Re: Stock Market Slump
Post by DennisM1045 on Aug 4^th, 2007, 9:27am

I'm hoping the current trend continues through mid-month. The strike price on the options I'm getting with my new company gets set on the 15th. 1st time in my life I'm hoping for bad financials ;;D

-Dennis-

Title: Re: Stock Market Slump
Post by Brewcrew on Aug 4^th, 2007, 10:37am

Bob - Take your retirement money in cash and place it all neatly under your mattress. It will be safe there. ;;D

Seriously, as I get closer to retirement, I move a higher percentage of it into T-bills where the oh-so-huge return of 1.25% is guaranteed. That way, if the shit hits the fan, there's at least a portion of it that is unaffected.

Title: Re: Stock Market Slump
Post by BMoneeTheMoneeMan on Aug 4^th, 2007, 1:21pm

on 08/04/07 at 10:37:36, Brewcrew wrote:

T-Bills are the shortest term paper, with the lowest yeild. Ya gotta by longer paper if you want a higher yeild. Even the 5 year and 10 year yeild much more than the 90 day T-Bill, the 30 year is even higher than that.

Title: Re: Stock Market Slump
Post by chewy on Aug 4^th, 2007, 1:33pm

Friend of mine is an engineer on trans Atlantic Cargo vessels. Said 40% of the fleet is in dry dock because cargo isn't moving.

Title: Re: Stock Market Slump
Post by Callico on Aug 4^th, 2007, 2:48pm

on 08/04/07 at 13:33:55, chewy wrote:

Friend of mine is an engineer on trans Atlantic Cargo vessels. Said 40% of the fleet is in dry dock because cargo isn't moving.

I don't know about shipping by ship, but right now the trucking industry in the US is unable to keep up with the freight being shipped, and cannot get enough drivers to keep up. Why else do you think there has been so much in the news about allowing Mexican drivers to come into the US and drive on our roads?

The slump you are talking about in the stock market is coming on the heels of a record close of over 14000, and is still significantly higher than it was at the beginning of the year. All is not perfect, but I don't think the financial sky is falling either.

Jerry

Title: Re: Stock Market Slump
Post by Brewcrew on Aug 4^th, 2007, 2:55pm

on 08/04/07 at 13:21:07, BMoneeTheMoneeMan wrote:

It's the only safe option I have in my 401k. And it makes up about 10% of my portfolio. All I'm saying is that that percentage should start to grow as you get closer to retirement. Otherwise too much of your money is subject to huge market fluctuations.

Title: Re: Stock Market Slump
Post by purpleydog on Aug 4^th, 2007, 3:40pm

on 08/04/07 at 14:48:23, Callico wrote:

I don't know about shipping by ship, but right now the trucking industry in the US is unable to keep up with the freight being shipped, and cannot get enough drivers to keep up.

The electrical plant my office is in has started shipping by rail, not only because of the trucking shortage, but it is also cheaper. They have only to transport their product to St. Louis, about 120 miles.

I keep an eye on the stock market, but don't watch it day by day, that can drive you nuts. My investments are holding their own, they go up and down, and reading the quarterly reports is good for me. They all increase every year, so I don't worry about the ups and downs as they happen.

There is a record amount of home foreclosures, and people are living beyond their means via credit cards and home equity loans. I see so many ads for mortgages with low payments. Some people get homes much larger and more expensive than they need, and all their money is tied up in making payments. They have no money to furnish their homes, or even having curtains. What's up with that... look at me, see what I can (barely) afford to buy?

The stock market fluctuates, it's how it works. As you move closer to retirement, and don't want the risk, you should move money out of stocks, or aggressive mutual funds, into safer investments.

Title: Re: Stock Market Slump
Post by BarbaraD on Aug 4^th, 2007, 5:39pm

Purple,

People don't look at the LONG term - just how much are the payments and then see if they can live beyond that. They're trying to keep up with the Jones's and don't realize that the poor Jones's are also hocked up to the eyeballs too.

Some of us were taught to live with what we can afford and do without the frills we can't, but we forgot to teach our kids that.

Personally, I think there are gonna be a lot more forclosures before it gets better.

Hugs BD

Title: Re: Stock Market Slump
Post by Brewcrew on Aug 4^th, 2007, 6:51pm

on 08/04/07 at 17:39:45, BarbaraD wrote:

Some of us were taught to live with what we can afford and do without the frills we can't, but we forgot to teach our kids that.

Barb - One thing I've noticed is that a lot of kids these days expect to start out where their parents ended up. And you're exactly right - their parents never taught them how valuable it can be for them to start with very little.

Title: Re: Stock Market Slump
Post by BMoneeTheMoneeMan on Aug 4^th, 2007, 7:04pm

on 08/04/07 at 18:51:13, Brewcrew wrote:

Barb - One thing I've noticed is that a lot of kids these days expect to start out where their parents ended up.

Man, thats a good way to put it, and exactly right. People out of high-school or college think they have to have the McMansions with the stainless appliances and marble bathrooms. There is no such thing as 'starting out' anymore.

remember when a house with 2 bathrooms was pretty damn cool?

Title: Re: Stock Market Slump
Post by Brewcrew on Aug 4^th, 2007, 7:09pm

on 08/04/07 at 19:04:39, BMoneeTheMoneeMan wrote:

remember when a house with 2 bathrooms was pretty damn cool?

I still do. We have only one. For the three of us. Once in awhile one of us does the "happy dance" while waiting.

Title: Re: Stock Market Slump
Post by Maffumatt on Aug 4^th, 2007, 8:29pm

on 08/04/07 at 03:06:54, BMoneeTheMoneeMan wrote:

Why are the cars sitting in storage and the customers cant find space to move goods?

Our customers are the rail car owners, their customers create the demand. The commodities aren't being moved because they are not being used. Its pretty simple supply and demand.

Title: Re: Stock Market Slump
Post by 1stdonna on Aug 4^th, 2007, 8:37pm

And just why do you think there is no demand? Is it because we poor folk do not have the money to buy?

Just looking for an intelligent answer.....not to provoke debate.

Title: Re: Stock Market Slump
Post by Maffumatt on Aug 4^th, 2007, 8:58pm

Bingo Donna.

Title: Re: Stock Market Slump
Post by john_d on Aug 4^th, 2007, 9:27pm

I thought it was because of real estate forclosures. Hopefully there will be decent correction and more then more growth. I'd like to retire someday also.

Title: Re: Stock Market Slump
Post by Charlie on Aug 4^th, 2007, 9:45pm

.........and the only jobs allowed or available to Americans, are unloading and transporting shit from China on its way to Walmart.

Scary times.

Charlie

Title: Re: Stock Market Slump
Post by 1stdonna on Aug 4^th, 2007, 9:56pm

Why are there so many real estate forclosures?

I don't buy the news that most people bought foolishly. Who approved their mortgages?......did they compute their incomes versus their payments?

Retirement is for the lucky few who were given the right advice at the right time....or luck, or old money.

I've worked two jobs since I was 16, raised three small children to parenthood by myself, worked one job as a professional ( women didn't earn nearly what men did in the 70' s and 80's) and have nothing to retire on now at age 70. I'm doomed to poverty and no real health care. I'm still working two part-time jobs and will til I drop.

I'm pissed at our leaders, our leaches and illegal immigrants.

Title: Re: Stock Market Slump
Post by john_d on Aug 5^th, 2007, 8:07am

on 08/04/07 at 21:56:36, 1stdonna wrote:

Why are there so many real estate forclosures?

I don't buy the news that most people bought foolishly. Who approved their mortgages?......did they compute their incomes versus their payments?

People took risky loans during the boom in hopes of making a killing a little later. When houses stopped selling, bunches of them were left holding the bag. Wisdom, logic or common sense has nothing to do with it, thousands were playing a risky game of foreclosure roulette and they lost. So did we apparently.

Title: Re: Stock Market Slump
Post by Brewcrew on Aug 5^th, 2007, 10:39am

on 08/05/07 at 08:07:38, john_d wrote:

Remember when you had to have 20% down to buy a house? That percentage kept getting smaller and smaller, and then they invented the "interest only" loan, and then people started borrowing more than 100% of the value of their house. Now the demand has dropped out of the market and people are mortgaged for more than what their home is worth.

Somebody gets laid off and boom - you're exactly right - guess who's left holding the bag? That's right - whoever signed the mortgage papers.

Title: Re: Stock Market Slump
Post by chewy on Aug 5^th, 2007, 10:46am

on 08/04/07 at 21:56:36, 1stdonna wrote:

Why are there so many real estate forclosures?

Predatory lenders is one reason.

Title: Re: Stock Market Slump
Post by BMoneeTheMoneeMan on Aug 5^th, 2007, 12:57pm

on 08/04/07 at 21:56:36, 1stdonna wrote:

Why are there so many real estate forclosures?

I don't buy the news that most people bought foolishly. Who approved their mortgages?......did they compute their incomes versus their payments?

Bill is right. It used to be that if you wanted to buy a house, you had to have some money. Used to be 20%, then it went down to 10%, now it's 0%.
Used to also be that banks looked at the 28-36% numbers, meaning no more than 28% of your income can go toward the mortgage, no more than 36% of your income can go toward debt repayment. Nowadays, even the A Rated banks will write a loan that is 50%.

This little change in the loan requirements was good enough to make people keep saying stuff like "Home sales are at an all time high", and stuff like "More people own homes now than at any point in history". These phrases sound good, but they are built on a foundation of bullshit.

Its pretty easy to look good when you bullshit about it and then hide the truth.

Title: Re: Stock Market Slump
Post by Brewcrew on Aug 5^th, 2007, 1:28pm

Institutionalized bullshit (when the media plays along).

Title: Re: Stock Market Slump
Post by BlueMeanie on Aug 5^th, 2007, 1:43pm

BMonee.. your right, the market isn't too bad just yet. My problem is most of my $$ are in financials. That's why I'm loosing my butt right now. :( Hate to move it cuz as soon as I do it'll end up going back up. Looks like I'll just ride the roller coaster for awhile.

When Cindy and I drove around all these new subdivisions in our area, we kept saying "how in the world can ALL these people afford these humungious houses". Come to find out, they can't. Your right, people are taking out these loans with very little down and paying half their income on house payments.

When we bought our first house, the bank insisted we could afford to borrow $100g's. We laughed and only took $50g. (25 years ago). Banks where willing to give away any amount you wanted, then they started with the no money down. Now it's comming back to haunt them.