it's hard to call a bottom when the current selling is motivated by the need to deleverage and raise liquidity.

banks aren't lending to anyone.

companies can't get other short-term financing like commercial paper, because the largest commercial paper dealer (lehman) blew up. :hihi:

on the flip side, investors in money market funds are liquidating their commercial paper holdings. because they're afraid they're not gonna get their money back. :conf:

so, if you need to raise cash in a jiffy ... where are ya gonna do it?

da stock mahket !

look out below!

:rtfm:

I don't think anyone really has a good fix on what's going to happen.

I'm a very conservative investor. My 401K has been pounded but I'm also a long way from retirement. Mutual funds are hit, but again it's all long term. My son's 529 has 15 years to recover.

Only worry is my money market, which currently has a lot in it, but it's all with Vanguard and if it ain't safe there I'm stocking up on tuna fish and bottled water :err:

-spence

we are all a lonnngggg way from living in retirement like our parents do/did, all that encouragement to invest in you r401K has now gone poo poo world wide

nice scup looks undersized though :hee:

Who the hell really knows?

There could (and some would argue must) be another innovative revolution like we had in the 90's that drives everything sky high. Then I'd be older and would adjust my allocations...

-spence

Yup no one knows,,, but there are a few talented guys that are able to make VERY accurate educated guesses.

Same boat,,, Fairly conservative.. YES it is all long term.... Long way to go too. Single so I still take a few risks. :smash:

Same with the money market because of limiting exposure and have seen a decline in my Mutual funds. I have a few Laddered CD's so I can still feed my addiction to fishing and buying plugs if the market closes...:happy::happy:

Honestly I see serious trouble in the market and think any bounce will be temporary but the world is not without risk.

FPP has just about spelled out the market in a nutshell,, either way I think we are all going to be eating schoolies next spring whether we like it or not.

Good you're into CD ladders, I think that's a smart move for anyone who can't tolerate more risk.

-spence

all I know is it aint good and it aint over

iceland is in serious shape, dragging the EU with it

The writing is on the wall as to what that is.... alternative energy.

Spence,

Yesterday fidelity and vanguard got permission to have their money market funds fully insured by the FED..just like the banks..you're O.K.
Sleep well!!

spence,

1. you're not getting any real return after inflation, the true handle of which is 9% or more.

2. your money is tied up with a bank that might go belly-up. not because of sub-prime, but because of global illiquidity and panic runs on the deposit base.

3. the FDIC deposit insurance reserves (~$55 billion) are being rapidly depleted as we speak. indy mac's failure alone was originally supposed to cost $4-$6 billion of reserve money, that figure has shot up to $9 billion (might even be more). just for one thrift. there are others that are blowing up and require attention.

4. the recently passed TARP act increased FDIC deposit insurance. but banks aren't paying increased contributions to the FDIC insurance reserve. this will aggravate #3.

the safest asset right now is the hardest of the hard assets. physical gold, preferably stored safely outside of the u.s.

Why do I sense this is just the tip of the ice berg??? Recession??? If this ain't one......I don't want to see one! Depression???? Oh boy!:hidin:

what do you mean ' recession bigfish? this country has been in a recession for years. A false economy was created to hide the recession. Now we face the wake up call..

"false economy" = consumer consumption fueled by easy money ... and sharply higher gov't spending.

greenspan:nailem:

Thats my point...they keep saying we are not nor have been in a recession.....what a joke!:bs:

hey larry :wave:

it's not official until the national bureau of economic research calls it one.

from 2005, we've had a rolling recession in that various sectors like housing and financial services were not doing too well.

now it's spreading to the rest of the economy.

He is a major investor in GOLD,,,,

The only reason I did CD's was because of how I felt about the market.. As far as my bank... They say they are ok,,,:err::err:

When I am in South Africa next month I will pick up some south african krugerrands

Probably true, but I'm certainly not out to maxamize my return but keep things simple. I agree there's a chance banks could flounder, but I'm hoping for the best.

-spence

hang onto your hats it's gonna be another rough day

futures are taking back lost ground...

s&p 500 index futures were down something like 30 points an hour ago, now they're only down 18 points. hell, in this environment, that's a rally. :rotf2:

Looks like we are in for another shellacing ....:deadhorse::deadhorse: I also don't think there is any way in hell there will be any buying heading into the weekend either

hey what's another 1000 points right?

Yup... and for the guys that buy now they sure have some HUGE nuts,,,

Wow,, what a ride today,,,,