Monday, September 15, 2008
Black Monday 2008
Today in my fictional stock market game I was a genius. I sold a few things short in the AM and had made 10% by the close of the market. Sort of expect more of the same tomorrow and the rest of the week. Panic and mayhem. In the real world my retirement account is taking a pounding. It is amazing to watch these institutions go floating by in the river of woe. This is why you should always hedge your bets in the real world. Of course I wish I'd sold everything in our 401ks, gone short on some ETFs, and then cashed out at night. But I didn't. If you have any play money I'd sell all the financials short and ride them down. It is going to be UGLY! When government officials start addressing the nation about keeping cool, you can bet it will be UGLY!
My prediction for the rest of the week is that almost everything will go down another 3-5%. Google will go up since they keep taking my (and everyone else's) ad money and transaction fees. GLD may also be on the way back up after dipping to the low 70s.
I swam almost 4k tonight, which makes 3 days in a row of swimming, which totally kicks ass.
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2 comments:
Here is something to think about? Yesterday, I heard that AIG had $65 of debt for every dollar of equity. So ... If I put that in terms I can understand. Let's say my annual income is $100,000 and I had the same debt ratio as AIG. That would mean I could have $650,000 dollars of ongoing debt. I could have a mortgage on a $500,000 home. I could have a nice $50,000 SUV in the drive way. I could have $50,000 more in revolving credit card debt. Finally, I could still have $50,000 remaining in debt for things like Bikes, Tri toys, vacations, furniture etc. WOW, anyone who did not know the truth, would think I was doing pretty well. Hmmmmmmm???????
That sounds like a good lifestyle! When you can't pay your bills just go ask the Treasury to print you some dough.
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