Old saying on wall street don’t fight the FED.

Maybe. The Fed stopped the last bursting bubble by flooding the markets with liquidity. I am not saying it can’t happen again, it really depends on the public maintaining confidence and there is no guarantee of that.

we had bubbles before the Fed, we also had depressions. bubbles are more to do with the human emotion of fear and greed than anything else IMO. While I agree that America can not print its way out of our problems. It is nice in a way to know that countries like china and the middle east are giving us a dollar in goods and getting back .70.

Old saying on wall street don’t fight the FED. a losing battle I think. It just takes time to turn around a ship the size of the USA. give it 6 months and we should be out of the woods IF the fear can be contained. I know its a big IF but…

both crashes were avoided by quick action from the FED and from the federal governmnet which to me is why we elect them in the first place to deal with these big issues that the little guy is powerless to stop. Next to a strong army to defend us I think it is the most important job of the fed gov to insure a free fair marketplace.

unseen on March 19, 2008 at 11:39 AM

You are absolutely right about this being the Feds job. I just wish they would get out of the business of controlling the money supply. Greenspan’s big mistake was to stop targeting growth in money supply and start targeting CPI and PPI. This ignores asset prices and that is why we had the double bubbles.

I don’t want revenge against BSC or any other broker/dealer but I think the Fed is fighting a losing battle. Of course, that doesn’t mean it shouldn’t fight.

The only thing that gives comfort is that it was used before for short term help during the depression and was swiftly stopped once the crisis was over. So all things being equal it should only be a short term fix. the FED seems to finally “get it” Now if only the other 80% of the AMerican people did the same. I would hate to think that our own stupidity/quest for revenge/spite would push us into a depression but over the weekend we came real close. that is the second bullet we dodged in the last 2 months. both crashes were avoided by quick action from the FED and from the federal governmnet which to me is why we elect them in the first place to deal with these big issues that the little guy is powerless to stop. Next to a strong army to defend us I think it is the most important job of the fed gov to insure a free fair marketplace.

As far as the Eagles, I’m a steelers fan so I know what you mean.

Bear makes a market for 1/7th of the US stocks. If bear didn’t open on Mon 1/7th of the US stocks would not have been able to trade. Bear also handles and clears trades for major hedge funds, they have a large fixed income business. So basically a failure of bear would have caused a failure of the entire US banking system. I would say that is reason enough to save the company wouldn’t you.

lol. I think I posted this exact same comment on Hot Air on Monday. I had to go back to check because I thought you were quoting me in this part as well as the first part.

My argument wasn’t that Bear should be saved, but rather pointing out what potential consequences the market would absorb as a result of one of the seven NYSE specialist firms closing shop. Yes, it would be very bad. The Fed used what powers are in its possession, but the move is highly unusual and may establish a bad precedent for other investment banks that aren’t banks with deposit windows.

Cramer roots for the Eagles so there’s really no way I can trust his calls as a Bears fan.

Hey, I know how to make a ton of money on stocks. What? Why am I not working on Wall Street? Cuz I’m dying to share my knowledge with you. And just for $19.99 (but only if you call RIGHT NOW) you can have my knowledge AND a monthly newsletter (a $50 value)

Actually it’s $499. A real bargain considering I started with action alerts plus in 2003 and I’ve beaten the market by more than double digits ever since. You guys can keep making fun while I keep making some serious coin.

We delayed the impact of the attack until now by creating a new double bubble while we studied and/or embraced Islam. Bad idea. Guess who is ready to make another big move in 2008 now that the housing and finance bubbles are collapsing? The same guy who has this naive Instapundit post on his cave wall.

So here’s Economics in One Lesson as a preemptive book suggestion for all.

Here’s the cliff notes audio interview for another book that predicted the specific unfolding current events.

And here’s a YouTube video with redeeming value. Warning: it’s a documentary with subtitles and it is not at all funny.

Either way was dead right and now getting mocked by comedians and YouTube fools. It’s almost a scapegoat mob mentality with people looking for someone to crucify in a crisis they simply don’t comprehend. It’s nervous herd laughter because their instincts should be telling them something is very wrong by now. I personally despise the idea of a lie taking hold and becoming the new truthier truth…just for fun, so I thought I’d call the foul.

Why are we such an unserious nation, and getting worse at the exact wrong time? I’d like to think we have the residual intellectual capacity to elevate our game when facing an economic crisis that could destroy our currency and/or bankrupt us almost overnight (yeah I know we’re already technically bankrupt). I can guarantee you that some billionaire enemies of the US know how to start effective rumors. We don’t need Cramer telling everyone to get their money out of the banks when there’s a rumor. It’s bad enough that we and the whole world all know we better move our investments and savings out of dollars as fast as possible.

http://www.youtube.com/watch?v=772PXNSrSiI&feature=user

Cramer is a weasel, the screen caps in the above prove it

Also, most of the posters in this thread aren’t as smart as they think they are since owning stock in Bear /= worrying the money invested via Bear would not be available.

Bear makes a market for 1/7th of the US stocks. If bear didn’t open on Mon 1/7th of the US stocks would not have been able to trade. Bear also handles and clears trades for major hedge funds, they have a large fixed income business. So basically a failure of bear would have caused a failure of the entire US banking system. I would say that is reason enough to save the company wouldn’t you.

From my understanding Cramer was bullish on bear due to the possibility of it being taken over by a european bank. that was the rumor being talked about. That being said the 170 to 60 move should have kept most away from bear regardless of what someone says on TV. Still you are correct with Creamers thoughts on the common stock. He makes alot of bad calls, he also makes alot of good calls. In trading you can be wrong more than 50% of the time and still make tons of money if you control you risk/losses/gains correctly.