Thanks to audikp, I apparently lost more percentage of car value than I thought yesterday. BUT I also gained more today! What a wide riding market. I'll be glad when the election is over.

 

I agree Robert however the insurance is only as good as the solvency of the FDIC. They used up around 20-25% of their deposits on IndyMac and that was a while back. Of course, the gov will just print more money to give them.

But I don't trust any bank right now. 95% of my money is in brokerage firms...no, not Etrade

The ONLY thing I find comforting (financially speaking) these days is that the dollar is actually acting quite well. Oh, and maybe I'll be able to pick up a 996 turbo for 40K....make that 35.

 

fwiw, no one should have more than 100k sitting in cash, whether it's insured or not. Even when interest rates are at 1% or so, in a money market, or 2% in a short term bond, that's still better than sitting in cash....and then they're 100% insured.

Unfortunately, I think a lot of people think that anything not in equities is "cash".

 

Cash in a cd getting 4% interest risk free (is what I ment). Nothing wrong with having no risk cd's as long as you have other investments with higher yield and higher risks. I am just sayig that I can insure a lot of money in one bank and do not need to have 15 banks insure my cash.

 

Disagree... in the bear market, you should be sitting on a good % of cash.

 

Why would I let 100K sit in cash when I can let it sit in a risk free cd....even if it is a sh*t 2.5% rate?

 

And if you and your wife's names are on the account, it is $100,000 per person.

 

Liquidation is the key. Most CDs are restricted with a time window and cashing them prematurely will encounter a penalty. If you buy 12-month or a 6-month CDs and the economy recovers in like 4 months, you will be missing out the opportunity. I keep my money in my credit union saving account and getting 3+% interests… not much less than CDs; however, I can move my money any time without a penalty.

 

No, risk free CD's can be shut down at any time.

A married couple with three children can have $1.5 million in one bank and %100 of it is FDIC insured.

Are you interested in learning how/why?

 

See attached .jpg file.

 

i keep mine in intrest bearing coffie cans . maxwellhouse pays the best and is insuried to the last drop

 

Also, you can buy tax-free municipal bonds that expire every 7 days. That way your cash is never tied up for long. A lot of the confusion (not for the educated people here) but for the people that get their financial information from the 6 oclock news, think that cash means paper bills. The same way they think "bailout" means helping an overpaid CEO refinance his company.

 

Im terrifed. Im starting to lose sleep.

They are proposing a securities trading tax of 0.25% on all stock transactions. To most it doesn't seem like a big deal . But for me it would be catastrophic.

Needless to say that would suck Traders who cant change their style are all dead.

 

I hit the "sell" button on all of my stocks 3 months ago. Went to cash positions. Couldn't be happier. Cut out a lot of stress I don't need. Will probably jump back in soon (Thursday) if we get some bailout decisions.

tw

 

Hey Hal,

I trade too, though not your size Mostly futures. I heard about that fee. Hopefully won't pass! I swear, the dumbass ideas being floated in this market in the last 4 weeks just blow me away. Banning short selling on financials ??? What country are we in? That worked out real well....a week later we have a 8+% down day. Don't they realize that the shorties are buying on those terrible down days? Without them....we freefall. And now they want this tax. I thought market wanted greater liquidity? Can you imagine how much volume will decline if they enact that fee? Most of these politicians don't seem to realize that lower volume/liquidity = greater volatility.

Sheesh, what's next?

Good trading!