Wall Street was not happy today ( Archived) (149)

About ten years ago I was encouraged to buy municipal bonds with a small inheritance. Other options were offered, as well, and I chose a low-interest but guaranteed retirement pack instead. (The broker was OK with whatever, his commission remained the same, although he insisted that the municipal bonds were a "sure deal"). Well, they weren't, after all, as the voters axed measure after measure in that cluster of counties, so it seems my carefulness was for the best. Purchasing paper is a gamble, whether it is through a bank, credit union, or brokerage firm. Money can and does turn on you. There are no guarantees.

What's even worse is that 2% own 90-95% of the wealth.
I'm beginning to think that Obama is the Repubs best friend. He bailed out the fat cats, didn't give a raise to SS recipients 2 years in a row, caved in to every demand of theirs. He's a weakling or a Repub in disguise. I would like to see the Dems get rid of him for someone else. Or better yet, a 3rd Party, and I don't mean teaparty.

You are a strong man. I know it took guts to hold but you would be kicking yourself in a week or two if you bailled today. Tomorrow may be another house of pain with the jobs report which the talking heads figure wont be great.

The financial markets have changed from something that used to oil the wheels of industry and commerce and assist global finance working, to a risk, an inhibitor and something downright dangerous.

Anyone who lays this at the door of the 2007/8 'crashes' Obama or whoever/whatever without looking at the history of it is deluding themselves.

The rapid growth, sophistication and speed of financial analysis software and communications, since the 1960s has led to small flutters turning into whirlwinds, bad practice being emulated on a global basis and short-termism being paramount.

There is a major 'lemming' mentality and some of the rationale behind it - would be totally illogical to an educated 16 year old. The Internet 'bubble', the expectations of continued and exponential mobile phone purchase and usage growth in the UK - when the market was at near 'saturation' are just 2 examples from pre 2007. The movements and behaviour around Sovereign Debt defies logic too.

I suspect that we will see some changes - the way the bond markets are working is against the interests of the major 'players' - including the USA, China, India and Euro-zone. Those in charge will not let 'the tail wag the dog' for unduly long.

I did really well trading Munis before the recession. I had a system that worked like a charm. Once the recession hit my system wouldn't work anymore so I was forced to totally abandon it. If the economy ever gets back to some level of normalcy my system may work again but I don't expect that to happen for several years, if ever.
Munis are good if you're in a high tax bracket and you need the tax free dividends. There are higher paying CEF's (Closed End Funds) if you don't mind paying the tax on the divs.

You are a strong man. I know it took guts to hold but you would be kicking yourself in a week or two if you bailled today. Tomorrow may be another house of pain with the jobs report which the talking heads figure wont be great.[/quote]

I forget, is this recovery summer...or was that last year?

Oh, let's give your post more "color"... let's say 1 person owns all the wealth.

I have to agree with a lot of what you said. As to the COLA (Cost Of Living Adjustment) built into Social Security, this was left untouched for the last 2? years, because whoever measures the cost of living determined no COLA was needed because the cost of living didn't go up in that time.

I wonder why.. ...Oh yeah, i know