30Sep
Weather you have bought into the hype of this alleged separation of Wall Street and Main Street, let me tell you that we are all connected to Wall Street weather we like it or not. If you still want to continue to believe that they are separate streets than at least understand that we have certainly come to the intersection of the major streets, and it resembles a Texas highway interchange.
If everyone doesn’t understand the importance of loaning money to individuals or companies by now please understand that it is what keeps the country moving “liquidity”. What does this mean for you if you’re an 18 year kid, this means that you and your parents most have impeccable credit in order to secure your student loans. Any and all loan departments are suffering from this crisis. If the banks can’t risk loaning money for people to buy cars, than what happens to the already struggling auto industry, well let me tell to it shrinks ie LAYOFFS. If this crisis is allowed to continue the shock wave will ripple through every industry causing them to fall like dominoes. Until the banks feel confident enough to continue lending money the system will be frozen!
This bill will help free up the system by BUYING NOT BAILING out the banks by buying there severely devalued mortgage assets! The government this time around has added a few more prevision to help the success of the bill like increasing the amount of money the FDIC insures deposits from 100,000 to 250,000 dollars. They have also changed some accounting rules that have been negatively affecting major companies, that is “Mark-to-Market”.
This bill is an attempt to un-freeze the markets, keep people in their homes, and bring confidence back to the markets. Thus creating a bottom in a verity of markets, which will help spur growth and start us in an upward moving trend. It all comes with risk and a price tag, the important thing to remember is that we are BUYING NOT BAILING OUT Wall Street and Main Street.
Brett Nelson
30Sep
If the Federal government is going to shoot a bullet that cost 700 billion dollars we certainly can’t afford to miss. Hopefully, the officials that we have elected have made the right decision by not passing a rushed bill through Congress. Thus, allowing needed time to add provisions that will ensure the success of the bill the second time around. I certainly know that the decisions that will be made by American tomorrow will be in the history books forever. It will be how America composes ourselves during these times, that history and the rest of the world will judge us. It’s the determination, strength and resilience of the American people and its leaders at make it the superpower that it is today.
Brett Nelson
30Sep
U.S. stocks rallied as growing expectations that lawmakers will salvage a $700 billion bank- rescue package helped the Standard & Poor’s 500 Index recover more than half of yesterday’s 8.8 percent plunge.
JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp. jumped more than 13 percent as Senate leaders vowed to resume work on the bailout plan this week after its rejection spurred the S&P 500’s biggest decline in two decades. Hess Corp. and Schlumberger Ltd. added more than 6 percent as optimism about the plan helped oil rebound from a $10-a-barrel drop.
“The market appears hopeful something will happen,” said John Carey, a Boston-based money manager at Pioneer Investment Management, which oversees about $300 billion.
The S&P 500 rose 52.21 points, or 4.7 percent, to 1,158.60 at 2:34 p.m. in New York. The Dow Jones Industrial Average gained 392.90, or 3.8 percent, to 10,758.35 after tumbling a record 777.68 points yesterday. The Nasdaq Composite Index added 4.4 percent to 2,070.61. Three stocks climbed for each that fell on the Big Board.
Tags: Bank of America, Dow, JPMorgan Chase & Co., Nasdaq, S&P 500
24Sep
If you can’t tell by the chart of the Dow Jones Industrial Average, the fate of the world is relying on the decision about the bailout plan. Which I believe should, inherently be renamed The “How Much Money Will the Government Make” plan. Paulson and Bernanke’s plan is not a “Bailout” it is more like a drop kick straight to the major banks. The major banks will be forced to get rid of this toxic paper but the Government will make all the banks compete against each other, to ensure they get the lowest possible price. The Government will then buy the loans at the bottom and intern sit on loans and sell them back to the same bank they bought them from, only now at a greater price. These banks are happy to do this because it will free them from the risk they would otherwise have by keeping “the paper”.
The government used the same ideology with AIG. The “Loan” not “Bailout” that the government has given AIG is “$85 BILLION at 11% INTEREST” oh and control of 80% of the company, go ahead and crunch those numbers on your calculator and tell me that was a bailout. The government will now come in, and with the help from (“The Bobs” from Office Space), will trim the overhead, then sell that loan or “paper” to a bank that will be salivating to obtain a loan for $85 billion dollars at 11% interest with the world’s largest Insurance company for EXTREMLY LARGE PREMIUM.
Brett Nelson 
Tags: AIG, Ben Bernanke, Dow, Hank Paulson
23Sep
I was watching the Paulson and Bernanke slaughterhouse this morning and couldn’t help but think how much I wouldn’t want to be in their shoes! There was vast deal of information that was being computed by my head this morning as I was watching the testimony. The first thing was that this would make for a great Southwest Airlines commercial, “Want to Get Away?” The second and far more serious matter was that, I liked what they had to say. The two of these guys are extremely smart and knowledgeable on there chosen fields. They also reiterated time and again the fact that the tax payer is priority number one and needs to be protected to the fullest extent of their powers. They went on to summarize that the tax payer would be at greater risk if their plan was not implemented. During the first part of the interview, I was hoping that this wasn’t going to turn into an Economics class especially when you’re trying to senators how the market works. It was eerily similar to that day in 1st grade when we all learned how to count, with apples and the sticks of ten cubes, than the sheets of 100 cubes. Extremely elementary, and the news is wondering why nothing got described.
After all the tension of the day ended with little to nothing actually done, Warren Buffet the sleeping giant shows up and saves the day. Warren Buffet came knocking on the door of Goldman Sachs with a check for 5 billion dollars. This invest was exactly what the market needed, in a day of so much uncertainty. This move drove up the uncertain financial sector in afterhours trading.
Brett Nelson
Tags: Ben Bernanke, Goldman Sachs, Henry Paulson, Warren Buffet
23Sep
Congress has more to say about the proposed “bailout,” as Bernanke and Paulson call for swift action. Markets are down again for the second day as concern is growing that the bailout that charged up the market last week will be delayed, or even worse not approved by congress. The heart of the debate is the fear that the people being bailed out are the Wall Street firms, and that the little man (already waist deep in a recession) will be saddled with the big tax bill.
The bailout could cost every American $2300! With oil rocketing up and elections literally around the corner, no one is signing off on this bill without looking like a hero. Some experts even doubt the bailout could work, with Bernanke’s track record of being completely wrong since his statement that “Sub-prime loans would not cause any large risk to the greater economy.” Tomorrow will be another interesting day as we might just see another large decline in the market.
Brent Kirk
22Sep
Paulo LaGreca, Brent Kirk and Bob Agahi, have been working at a feverish pace to try and make sense of the roller coaster of a ride the US stock market has been on over the last week. They were approached for their advice and knowledge in an article ran by the Biz San Diego website, and were pleased to share their thought on where is market is headed. In the article they go in-depth on everything from government intervention into the US markets to hitting bottoms in the housing markets. You can read the full article by visiting this link:
BIZ San Diego Article
22Sep
The unprecedented move to change the firms into bank holding companies comes on the heels of the U.S. rescue plan for banks in which the U.S. Treasury agreed to spend $700 billion to buy distressed mortgages. In the past 2 weeks the U.S. government has pushed themselves right into the private financial sector, bailing out Fannie Mae and Freddie Mac and insurance giant AIG.
These dramatic steps to shore up the US Financial sector has weakened the US Dollar. The volatility in the market will continue for no other reason then, these steps have put all the chips on the table for the fed. If this doesn’t work, there is not a plan B.
Tags: AIG, Golgman Sachs, Morgan Stanley, US Dollar, US Treasury
19Sep
The SEC intends to temporarily ban short-selling, The Wall Street Journal reported Thursday night. The move may not have received full approval at the time the story broke, the Journal reported. SEC Chairman Christopher Cox, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson were briefing congressional leaders Thursday night. The U.S. move would follow a similar action by U.K. regulators on Thursday. Abusive short selling is widely believed to have had a major role in the recent dramatic fall in US financial equities.
Bob Agahi
Tags: Ben Bernanke, Christopher Cox, SEC, Short Selling, US Treasury
18Sep
UK officials have placed a ban on shorting Financial stocks until January 16, but will be reviewed in 30 days! The ban also includes the disclosure of short holding that are more than .25% of the stock. Officials have made clear that abusive short selling and fear mongering will no longer be tolerated.
Brett Nelson
Tags: Short Selling
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