BoatBanter.com - View Single Post - economist blames wall street for collapse

hk

On 5/9/10 10:25 PM, wrote:
On Sun, 9 May 2010 14:26:49 -0700,
wrote:

wrote in message
news
On Sun, 9 May 2010 10:05:08 -0700,
wrote:

It was a trillion that never really existed in the first place. It was
just phony paper "money" they created out of thin air.

While it wasn't cash, if the stocks are sold (and many are), it would
certainly be real!

A stock price is only valid for the last person to actually exercise
that trade and as sell orders come in prices inevitably drop.
Some of my stop loss orders actually traded lower than the price I set
because the market would not support that price in the free fall after
that bozo screwed up one sell order.

Yes, thus the money is certainly real for those exercising trades. It also
has the effect of making companies vulnerable to pirates, who would take
advantage of low stock prices. Again, very real consequences.

... but the money is only real when you sell the stock and if too many
people try to sell the stock the price drops so the true "value" is a
nebulous thing to define.
My brokerage report calls the position "unrealized gains" so we won't
get too giddy about our good fortune.
As BP found out, all of those gains in his 401k in 2006 were just love
letters in the sand.
When a significant number of boomers start drawing off their 401ks he
won't have much there at all. That is the huge joke on the early 50
somethings and younger about this 401k deal.
Much like Social Security, it may be gone by the time they get their
shot at it.
After watching how things went this week, I am thinking about just
cashing out my 401k and buying silver coins or something.
I bought a bag of silver dimes in the late 90s for 6x face, they are
going more like 13x face now.
BP wishes his 401k was doing as well and if the dollar crashes, silver
will be worth more. I am just sorry I didn't buy a wheel barrow full.
I have ~10,000 rounds of ammo that has appreciated quite a bit more
than that in the same time frame. My machine gun is 10x what I paid
for it. I may cash that one in this year.
Paper is not the only way to hold money.

Machine gun? That's what I need to hold off the LoogyZombies...what
kind...and should I start the paperwork for a transfer?

My last firearms purchase was a CZ-75 Shadow, highly customized. It's
now single action, with a 3# trigger. Incredibly accurate, at least as
accurate as the Sig target pistol I owned for a couple of years. Holds
19 rounds in the mag, one in the pipe.

--
The Tea Party's teabaggers are just the Republican base by another name.