Posted on 08/24/2015 4:00:11 AM PDT by EBH
Yup! That’s the first waive of ‘haircuts’ and many people will be thrilled to have the ‘government’ protect their retirement, never realizing it was actually confiscated from them.
Let me know when it bottoms out so I can buy back in, too. :)
Do you really think the invisible hand is going to let the shock market crash on "his" watch?
The whole point of QE Infinity was to keep the market from making the FBP look bad.
No he won’t. He’s been waiting for this moment his whole presidency. And Democrats are not mathematically challenged. They hate America and want to see if collapse.
Good question and one that crossed my mind this morning while out walking the dog.
Here is where my pea brain went on the question:
If the market reflects future events, then this drop is a needed correction to the Fed floating the idea of raising interest rates in September.
With the current debt load rates have to come up sometime, but no previous government has successfully recovered in this manner. This is just a flash of lightening before the big collapse in September, why? Because the Fed will raise interest rates in September anyway. In fact, this flash will settle down and events will seem normal. This will cause the Fed to raise rates, not by the .25 base points, but the idiots will raise rates by .5 or .75 base points in September.
Of course, us little poor widows with tiny IRAs are being told not to “panic” and hang tough, while the billionaires freak out, sell sell sell, and leave us with nothing.
same here.
Ammo: the only sure investment.
Raise rates or simply pull the plug on the $85 billion a month they’ve been pumping into the stock market?
See posts 50 and 61
Way back prior to ...months prior to the 2008 election, they were already making plans to protect your little IRA, 401K, etc.
That plan has been maturing now for nearly a decade and they now need a ‘crisis’ to implement it.
As I retired last year, I intentionally took a lump sum to the extent of the law in every account. I’d had the accounts cut in half twice before. All the annuity numbers I was given looked miniscule compared to my own future value calculations. The only conclusion for me was that the number crunchers at the financial houses were building in a huge drop in value of the funds.
Wouldn’t the last owner that couldn’t sell the stock still own it? When I was a kid I saw an old shack that had stock certificates as wall cover to keep the cold from coming through cracks. I asked my dad what they were, I remember they were so pretty, looked like art. I wondered later if the stock had recovered the certificates I saw may have been worth a lot of money. As to the tangible things a corporation owns if the company goes broke don’t the creditors take possession?
A corporation is just a type of business structure set up so that the individuals owners don’t directly pay the taxes and aren’t responsible directly for liabilities. This allows multiple owners to invest and make profit whereas they wouldn’t be able to do it individually. If you own stock, you do pay the taxes indirectly because the corporate tax lowers your profit, and you pay directly when you receive dividends. ( double taxation )
If corporations go bankrupt as you are questioning, they would have to sell their assets and pay any bond holders and then the stockholders may get anything left.
I think you’re right about creditors. But, if they take the physical buildings, machines, etc., do they also have to take the now zero stock? Or is that just dead once it hits zero?
This is from last year and gives a good example of the pickle the financial world is in.
The Hawaiian Tropic Effect: Why the Fed’s Quantitative Easing Isn’t Over
http://www.bloomberg.com/bw/articles/2014-10-29/the-feds-quantitative-easing-is-not-really-ending
Ha ha.
So, any ‘owner’ would get anything left after paying the company’s debts? Makes sense.
Whatever.
Thanks to the Obama economy, I don’t have any money to put in the stock market anyways.
Good to revisit when Cramer was right.
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