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And so the blood bath begins

Thanks to huricane Ike I missed this little bit news a bout 11 days ago.

"Money funds see record $90 billion one-day drop[FONT=Arial,Helvetica,Geneva] Putnam closes fund; Columbia, Dreyfus act to save $1 a share net asset value
[FONT=Arial,Helvetica,Geneva] [/FONT]By Sam Mamudi, MarketWatch [SIZE=-1]Last Update: 1:51 PM ET Sep 18, 2008[/SIZE] [FONT=Arial,Helvetica,Geneva]NEW YORK (MarketWatch) -- Money market funds saw nearly $90 billion of net investor cash pulled out on Wednesday, among the largest single-day drops in history.[/FONT]
[FONT=Arial,Helvetica,Geneva]Figures from iMoneyNet show that assets dropped to $3.35 trillion from $3.44 trillion, a fall of $89.2 billion.[/FONT]
[FONT=Arial,Helvetica,Geneva]Among the funds hit hardest by the redemptions was the $12.3 billion Putnam Prime Money Market Fund (PPMXX) institutional fund, which saw such a severe run on its assets that Putnam Investments, a subsidiary of Great West Lifeco Inc. (GWLI.F) said Thursday it would liquidate the fund. [/FONT]
[FONT=Arial,Helvetica,Geneva]Also Wednesday, it was revealed that money market funds managed by Bank of New York Mellon Corp.'s (BK) Dreyfus and Columbia Management, the fund arm of Bank of America Corp. (BAC) held commercial paper issued by Lehman Brothers Holdings (LEHMQ) and needed support from their parent companies to maintain their $1 a share net asset value. [/FONT]
[FONT=Arial,Helvetica,Geneva]Figures from iMoneyNet show that $130 billion left prime institutional money market funds Wednesday. This follows $61 billion of redemptions on Monday and $37.2 billion of redemptions on Tuesday. [/FONT]
[FONT=Arial,Helvetica,Geneva]"This is the largest week of outflows that we've ever had," said Connie Bugbee, managing editor of iMoneyNet. "It's not even close." She added that some of the outflows, perhaps as much as $20 billion may be due to companies moving money around because Monday was quarterly corporate tax day.[/FONT]


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8Mud said:
There is a finite amount of money, when it stops flowing and/or flows in new directions, the outcome may be that is flows away from you. The bail out is actually a long shot, as this money may not end up where it would do any good.
How much of a commodity rise would end up costing you the same amount as the bailout? Around $1.50 a day. The price of milk has gone up that much for my family in the last year.
But again it's doubtful much of the bailout money will end up where it is supposed to, much of it may just go the same way as all the rest. And actually when was the last time the federal government came in on budget for anything? This bailout is likely just the beginning.
Click to expand...

Nonsense, the gov't will just print more! I mean, come on, its based on faith in the US govt... thats pretty effing worthless these days.

I don't agree in rewarding these idiots. Companies fail when they make bad decisions.
 
Are we in hell yet?
 
I dont see how anyone really "lost" anything - if you own 50 shares of Coca Cola stock....you still own that many shares. Sure, the price went down yesterday, but tomorrow, it could go right back up. The only way you lost anything is if you were a dumbass and sold all of your shares for less than you bought them for.

Its all speculation. No one actually went into GE's bank account and physically took millions of dollars from them.

The panic and the "crash" is caused when everyone freaks out and starts selling. I really hate Wall Street and all this bullshit. Makes things way more complicated than it has to be...so that a few people get rich, and everyone else is basically gambling.
 
vetteboy said:
Nice, way to put the blame where it belongs. :read: :dunce:
Click to expand...


x2, yeah, I forgot he's been our dictator since the 70s when all this got started....

:roflmao:
 
JNickel101 said:
I dont see how anyone really "lost" anything - if you own 50 shares of Coca Cola stock....you still own that many shares. Sure, the price went down yesterday, but tomorrow, it could go right back up. The only way you lost anything is if you were a dumbass and sold all of your shares for less than you bought them for.

Its all speculation. No one actually went into GE's bank account and physically took millions of dollars from them.

The panic and the "crash" is caused when everyone freaks out and starts selling. I really hate Wall Street and all this bullshit. Makes things way more complicated than it has to be...so that a few people get rich, and everyone else is basically gambling.
Click to expand...

Excellent point.

All I have to say about this "bailout" plan BS is temporarily freeze the mark-to-market rule within Sarbanes-Oxley. Watch the market begin to correct the very next day.
 
Ecomike,

Take a breathe. Sing with me...; The sun will come out, tomorrow, tomorrow, bet your bottom dollar (or should that be ruble?)

The world is not going to end, we will be fine with this "bail out" or without it. You need to put down the puter for awhile & go for a walk. The worst thing that will happen is you may need to have a better down payment to buy a house or a car, but as of yet that's not even true. Hell, I had the local Chrysler dealer trying to talk me into a 0 down 0% 72 month car loan yesterday!!! Don't be chicken little. I'm dealing with some pretty big #'s with loans & Lines of credit in my business & my bankers aren't even blinking about this...
 
FarmerMatt said:
Ecomike,

Take a breathe. Sing with me...; The sun will come out, tomorrow, tomorrow, bet your bottom dollar (or should that be ruble?)

The world is not going to end, we will be fine with this "bail out" or without it. You need to put down the puter for awhile & go for a walk. The worst thing that will happen is you may need to have a better down payment to buy a house or a car, but as of yet that's not even true. Hell, I had the local Chrysler dealer trying to talk me into a 0 down 0% 72 month car loan yesterday!!! Don't be chicken little. I'm dealing with some pretty big #'s with loans & Lines of credit in my business & my bankers aren't even blinking about this...
Click to expand...

I am long past all that, house is paid off, 4 jeeps are paid for,.. for (but still pay property taxes each year) I am more worried about my kids who are just starting out in College right now, and I'm worried about you guys who don't seem to realize the long term implications of what is happening world wide right now.
I do consulting work here for a venture capital firm that has tried recently to change banks on a line a credit based on commercial real estate, and I can tell you right now from experience the big commercial credit operations are frozen, and they were so tight a month ago, we could see this coming.
 
Yes the sun rose today and will set tonight and God willing and the creeks don't rise I'll be in Moab on Monday. party1:
 
Another voice of reason......thanks Matt.

The Fed, Congress and the President have known that this was going to happen.......they created the problem, which has multiple layers, spans multiple Presidencies, the Reps and Dems alike. You've gotta see thru the political posturing here.

They promoted PC loan programs to give folks who shouldn't have gotten a loan for a home some credit to allow them to do so, and act all surprised when they default on the loans.......blaming it on the current President. The plan was enacted under Clinton, and was a stupid idea then.

Entitlement and PC is directly tied to the philosophy of Socialism, just as this rediculous bailout. Are my invested funds in the tank with everyone elses? Sure, but we will rebound from this and the market will be even stronger.......IF Capitolism is allowed to work and the process is allowed to run it's course. It's actually a great time to buy stock, if you know where to buy.

A rush to a solution, drafted upon fear and panic, will ultimately leave us in a much worse position.

Let the market work, give it time to stabilize and immediately get rid of the stupid programs that have created and perpetuated this problem in the first place and have allowed the unscrupulous and greedy to work the system and undermine our economy. Their corporate theivery is way worse than Enron......where's the call for justice? I want these folks to never have the ability to handle anyone's money, ever!
 
Ecomike said:
I am long past all that, house is paid off, 4 jeeps are paid for,.. for (but still pay property taxes each year) I am more worried about my kids who are just starting out in College right now, and I'm worried about you guys who don't seem to realize the long term implications of what is happening world wide right now.
I do consulting work here for a venture capital firm that has tried recently to change banks on a line a credit based on commercial real estate, and I can tell you right now from experience the big commercial credit operations are frozen, and they were so tight a month ago, we could see this coming.
Click to expand...

Consequenses correct conduct.
 
Ecomike said:
I am more worried about my kids who are just starting out in College right now, and I'm worried about you guys who don't seem to realize the long term implications of what is happening world wide right now.
Click to expand...

I'm 24 years old, 2 years out of college. I'm not worrying.

You know why?

Because what the hell good would it do me to sit here and worry about it?

You find a way to adapt. I'm looking at now as a great time to go back and get my masters.
 
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