The End of Wall Street's Boom

Discussion in 'Economy' started by midcan5, Dec 17, 2008.

  1. midcan5
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    midcan5 liberal / progressive

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    'The End' by Michael Lewis December 2008 Issue

    "The era that defined Wall Street is finally, officially over. Michael Lewis, who chronicled its excess in Liar’s Poker, returns to his old haunt to figure out what went wrong."

    "To this day, the willingness of a Wall Street investment bank to pay me hundreds of thousands of dollars to dispense investment advice to grownups remains a mystery to me. I was 24 years old, with no experience of, or particular interest in, guessing which stocks and bonds would rise and which would fall. The essential function of Wall Street is to allocate capital—to decide who should get it and who should not. Believe me when I tell you that I hadn’t the first clue...."

    "I thought I was writing a period piece about the 1980s in America. Not for a moment did I suspect that the financial 1980s would last two full decades longer or that the difference in degree between Wall Street and ordinary life would swell into a difference in kind. I expected readers of the future to be outraged that back in 1986, the C.E.O. of Salomon Brothers, John Gutfreund, was paid $3.1 million; I expected them to gape in horror when I reported that one of our traders, Howie Rubin, had moved to Merrill Lynch, where he lost $250 million; I assumed they’d be shocked to learn that a Wall Street C.E.O. had only the vaguest idea of the risks his traders were running. What I didn’t expect was that any future reader would look on my experience and say, “How quaint.”"

    The End of Wall Street's Boom - National Business News - Portfolio.com
     
  2. editec
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    editec Mr. Forgot-it-All

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    Wall street was a' go go because credit was a' cheapcheap.

    The party's over.
     
  3. Paulie
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    Paulie Platinum Member

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    Uh, credit is pretty damn cheap again in case anyone hasn't noticed. Cheaper than EVER, actually. Banks are almost literally lending to each other for free.

    I suspect it won't be long before they're PAYING us to borrow.

    There will be easy money again, and it won't be pretty for consumers. Wall Street will boom again. There's eventually going to be a lot of new money again that will need to find a home.

    You obviously haven't thought outside the box much, midcan.
     
  4. editec
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    editec Mr. Forgot-it-All

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    Yeah, all you have to do is not need it.


    People are buying ZERO return T-bills rather than reinvest in the market.

    Sounds like people aren't exactly reading to plunge headlong into that market just yet.

    From your pen to Mammon's ear, Paul.

    I can't help but note that the supply siders in power aren't having any trouble thinking outside their Austrian School of Econ box they'd formerly inhabited.

    Interesting times.
     
  5. SwingVoter
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    SwingVoter VIP Member

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    was stunning to see the 30 yr treasury get down to a yield of 2.65% today

    the Fed is feeding the system Lewis thinks is dead, won't be subprime mortgages in the 2010s boom, but rather tech stocks or some asset class that didn't all that well in the 2000s boom, but Wall St will still play the same games it has for years
     
  6. midcan5
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    midcan5 liberal / progressive

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    Did anyone read the piece? It is excellent and demonstrates just how stupidity and greed got us into this current mess. Read it Paulitics before making totally irrelevant comments.

    This past year we took some money and allowed two big name investment firms see what they could do with it. Now i realize it was a odd and very bad year for equities but I assumed (wrongly) that they would have enough insight and knowledge to get out before the crash or move into safe areas. Neither happened and while one did better than the other they both lost. Read the piece and you'll get an idea why.

    and another

    The Seven Deadly Deficits | CommonDreams.org
     
  7. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    The Boom is over! Until the next boom.
     
  8. Paulie
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    Paulie Platinum Member

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    Irrelevant? How so? I addressed why we are not witnessing the end of Wall St. booms.

    But a good question is, why would you put your trust in some firm to manage your money? You ought to research your desired positions yourself and make up your own mind. Just because it's a financial services firm doesn't mean they know what the hell they're even doing, as evidenced by their results.
     
  9. Zoomie1980
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    Zoomie1980 Senior Member

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    Warren Buffet and myself are two people plunging right now....

    Last time I had this high a percentage of my investment dollar going into stocks was 1991.....
     
  10. Zoomie1980
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    Zoomie1980 Senior Member

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    Cheap, indeed. Just bought another nice $150,000 home in foreclosure for $70,000 and got a 100% financed note on it for 5.25%!!! Cheap, and EASY. And rented it yesterday for $750/mo.....

    I'm really starting to LIKE this recession.....
     

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