Crash Manufactured?

So, one thing that has been worrying me lately is that it's been about a year since this thing officially started.

During that time, the "economy" has done very well. People bought stuff, they took vacations and spent money on frivolous things. A lot of money on frivolous things. People have lived "paycheck to paycheck" but that still allowed them to get by and spend while doing so. Some collapsed in bankruptcy, but many more just kept going.

My thought is this: If nobody talked about a "recession" would this one have come about? If the word "depression" was never uttered on CNBC would investors have pulled their money out?

Sad times none the less.

Good luck all.

Mastercard

I've made a goode amount of money this past year on Mastercard stock. I've also lost a good deal of that gain the last two months with Mastercard options. But I have to tell you, this video really captures the moment.

I just realized I'm pissed off

And it's probably at you or someone that you know.

I have spent my whole life working to make sure that I pay my bills. If I get myself in debt, I PAY IT OFF.

I do not:

1. Buy a house that I cannot afford
2. Buy a second house that I really can't afford
3. Buy a big screen TV, vacations, new clothes or any other daily needs on credit
4. Buy a car that costs as much as some people's homes
5. Spend more than I make

There is a lot more that I don't do, but you get the idea. I've lived pretty much like a monk for the last few years, building for the future:

1. Spending far less than what I make
2. Driving a cheap used car that is completely paid off
3. Living in a house that I CAN AFFORD
4. Paying off any debt that I incur immediately after I incur it
5. Paying more into my mortgage than I owe every month

And of course, there is more there as well. But again, you get the idea.

So I decided that I should be pretty pissed. Because you, or someone you know decided that it was ok to party, take risks and not have to pay the bill.

Guess what. I'm going to have to pay that bill. In higher taxes. In lower value of my stocks. In lower value of my saved dollars. In lower value of my paid down house.

I'm going to have to subsidize the existence of some very lazy americans with some exceptionally messed up values.

Thanks.

Thanks a lot.

But, I have to tell you. I'll get the last laugh eventually.

I'm one of a very few people left that can get a loan for almost any house I want. I can go buy Big screen TV's, vacations and really nice cars for cash. I will survive in a world where most cannot and I'll thrive in a world without free flowing credit.

Will you?

On Panic in the market

Yesterday was truly stunning to watch. During the last two panics, I did not have a window into the stock market. All my trading was done via broker and my understanding of how hard I was being hit was limited to monthly statements.

Being able to watch this panic (albeit, while I was working) was an awesome sight. Watching nearly every company that I had in my list drop by 5% to 25% or more in a matter of a minute was humbling. Watching it climb was amazing and having almost everything end very green felt like winning the lottery despite being down big for the week.

Of course, the next couple days might be the biggest short squeeze that the world has seen in a while. I cannot fathom the fear that short sellers are feeling right now. Well... Actually I can, it's probably pretty close to what I have been feeling for the last few weeks. I've been trying hard not to panic, but the fear has been as big a part of me as it ever has.

I believe in the market and I believe in this country, but we have been on our way to an ugly place much worse that people have a grasp of. I only hope that this malaise gets a shot in the arm with the action happening now.

People, real people are riding on this. There are those who think that Wall street only affects fat cats and bankers. The truth is that it affects small mom and pops much more. The bankers and fat cats know how to maneuver around these markets. Even the CEO's of the companies that massively failed walked away with more money than I'll ever have in my life. But average investors get chewed up and take their money out of the market in times like this, literally selling at the worst possible time.

The next year is going to be a momentous time. We will either crash massively as a country, an economy and a market or we'll see the bottom of the hill and start a climb back up. My hope is for the latter.

Good luck all.

Team 1 or Team 2

I have to spread this. It;s a very unique way to look at the problem at hand. I'd like to see this sort of comparison done with all aspects of these two teams. It would be great to see a list of policies, beliefs and supporters.

Original link here

Don't Panic

Just a small reminder to myself and all my friends. In the face of danger... Do not, under an circumstances, Panic.

Remain calm, walk in an orderly manner towards the exits if you feel compelled to leave. For those of you staying on to watch the end of the universe, please have a seat at the table of your choice.

Good luck everyone!