Author Topic: Banks Fucked  (Read 13471 times)

Dumah

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Re: Banks Fucked
« Reply #30 on: September 16, 2008, 02:00:55 AM »
my retirement fund actually gained $1,000 today. how the
hell did that happen?

 :dunno:

charlie

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Re: Banks Fucked
« Reply #31 on: September 16, 2008, 02:13:34 AM »
You're 100% invested in pig lipstick futures?

Phil

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Re: Banks Fucked
« Reply #32 on: September 16, 2008, 03:47:46 AM »
Quote
my retirement fund actually gained $1,000 today. how the
hell did that happen?

The manager of your fund is very shrewd and bought a stack of put options on the Dow a few days ago.

Dumah

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Re: Banks Fucked
« Reply #33 on: September 16, 2008, 03:54:44 AM »
Quote
my retirement fund actually gained $1,000 today. how the
hell did that happen?

The manager of your fund is very shrewd and bought a stack of put options on the Dow a few days ago.

He'd have had to buy a shitload of them to offset the downward pressure on the rest of the market. And as the market has known about the pressures on Lehman for some time, whatever put options or futures contracts that underly them there were a week ago would be priced in a way that you wouldn't have made much on them anyway.


Phil

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Re: Banks Fucked
« Reply #34 on: September 16, 2008, 06:20:11 AM »
Assuming that $1000 dollars is a significant percentage increase I don't really know how else you'd make such a substantial gain in one day when the markets have tanked.

Spreadbets maybe? CFD's?  :dunno:

Then again I don't work in finance.  :)

What do you do Dumah? Are you worried at all?

Dumah

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Re: Banks Fucked
« Reply #35 on: September 16, 2008, 07:33:27 AM »
Assuming that $1000 dollars is a significant percentage increase I don't really know how else you'd make such a substantial gain in one day when the markets have tanked.

Spreadbets maybe? CFD's?  :dunno:

Then again I don't work in finance.  :)

What do you do Dumah? Are you worried at all?

Investment managers earn their salaries by holding a diverse range of assets with different forms of risk. A typical fund will contain assets (shares & derivatives) backed by gold, shares (over loads of different industries), bonds (corporate & government), commodities, property, and all sorts of other stuff. Having a diverse mix means that market events will have an effect, but hopefully not wipe out the whole fund. Hypothetically, imagine the fund was 100% shares in Lehman - you'd have nothing today, then imagine it was 100% gold - youd have made an annual equivelent of 20% gain between Friday and Monday. The thing a good fund manager does is to play different assets off, minimise the risk & get a decent return.

What I was trying to point out is that this event has had a massive affect on most asset classes and it's fair to say that the vast majority of well managed funds have fallen in value. For the fund manager to make a sudden gain means he was either exceptionally lucky that the assets he manages have gone against the trend or that he's a massive gambler and has bet a huge amount on Lehman going bust. For one financial transaction to prop up the fall in the rest of his fund it would have to be pretty massive. Remember, if Barclays bailed them out over the weekend, he'd have probably sent his own fund bust as the gamble failed - not a good thing for man who is paid to be a "safe pair of hands" to do.

Am I worried - a little because we are a year in now and big things are still happening. There's no point worrying though as you cant change things so worrying only hurts yourself.

No matter what the state of the economy, you have to remember that you are on a cycle. If it's bad now, then it'll get better eventually. Then it'll go to shit again in a few more years.

Just make sure though, that if the worst comes to the worst that you have a shotgun and enough tinned food to see out the winter!

;)


Maybe my previous balance was higher than I remember

That might well be probable...

Jake

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Re: Banks Fucked
« Reply #36 on: September 16, 2008, 08:51:38 AM »
who will save AIG? maybe an oil gauging middle eastern government? too bad they can only own 10%...
Do not follow where the path may lead. Go instead where there is no path and leave a trail.

Govtcheez

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Re: Banks Fucked
« Reply #37 on: September 16, 2008, 09:23:30 PM »
I guess your question is answered now axon

Jake

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Re: Banks Fucked
« Reply #38 on: September 16, 2008, 10:29:03 PM »
yep - I wasn't expecting that  :o 

http://news.bbc.co.uk/2/hi/business/7620127.stm
Do not follow where the path may lead. Go instead where there is no path and leave a trail.

JaWiB

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Re: Banks Fucked
« Reply #39 on: September 16, 2008, 10:37:43 PM »
Now who's gonna save the government?

Steve

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Re: Banks Fucked
« Reply #40 on: September 16, 2008, 10:42:20 PM »
Now who's gonna save the government?

palin? :lol:
hey ethic if you and i were both courting lily allen..... oh wait, which one of us has a relationship that lasted more than the bus ride home?

Dumah

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Re: Banks Fucked
« Reply #41 on: September 19, 2008, 07:26:09 PM »
so our government saved the world.

again.

Ugh...yeah...

$500billion rescue plan divided by 300millionn Americans means that the national debt has potentially risen by $1667 per American.

Oh, that's without any fallout from the $3.2trillion in extra guarantees the US government is giving.

But maybe I'm being too pessimistic..so  :thumbsup: :dblthumb2: :thumbsup: :dblthumb2: :thumbsup: :dblthumb2: :thumbsup: :dblthumb2: :thumbsup: :dblthumb2: :thumbsup: :dblthumb2:

Dumah

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Re: Banks Fucked
« Reply #42 on: September 20, 2008, 03:15:35 AM »
but only, like, 2/3 of those are tax payers.

OK that makes it a cool $2500 per taxpayer...

And RoD has told me he aint paying his share so for you it's $5000

 :D

KnuckleBuckett

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Re: Banks Fucked
« Reply #43 on: September 20, 2008, 07:24:59 AM »
but only, like, 2/3 of those are tax payers.

OK that makes it a cool $2500 per taxpayer...

And RoD has told me he aint paying his share so for you it's $5000

 :D

ethic owned   :)

Rob

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Re: Banks Fucked
« Reply #44 on: September 20, 2008, 08:36:00 AM »
Apparently the problems are hitting the Eastern economy too. The Japanese government is reporting that Japan's largest bank, the Origami bank, has folded.