Stock Loans

Should you take Cramer's advice and quit the Market?

“Whatever money you may need for the next five years,” Jim Cramer told the legions of Cramericans yesterday, “please take it out of the stock market right now.” 

From Agora Financial's 5 minute forecast:

"Mr. There’s always a bull market somewhere” officially checked out of the current market, suggesting that a the current drama could cause “as much as a 20% decrease in the stock market.”

You don't have to run screaming from the market and take losses today because Cramer said to.  You can take a loan against your portfolio to hedge against losses; non-recourse loans mean that if your stock tanks, you can walk away.

I don't recommend making any decision on the emotions we're experiencing now.  Check out your options, take a deep breath, then sleep on it. 

If you'd like a quote on a particular stock, I can give it to you  via e mail.  I'll need:

• symbol
• value
• state of your residence
• whether or not you are associated with the company

I'll get a quote for you as fast as I possibly can.  Loans tend to close in ten days or less, unless they exceed the ten million mark.

NEW YORK TIMES and WALL STREET JOURNAL RIP FANNIE/FREDDIE MESS FRIDAY THROUGH MONDAY

“The real outrage is that none of this had to happen,” said William A. Fleckenstein, co-author of “Greenspan’s Bubbles: The Age of Ignorance at the Federal Reserve” and president of Fleckenstein Capital in Issaquah, Wash. “We did not have to ruin the financial system and ruin the financial lives of a huge chunk of the middle class in the United States.”

“It is crystal clear that

• the Fed not only made mistakes,
• they had the pompoms out, cheering for deregulation,” he adds.

“Until people recognize why we are in this mess, I don’t see how we get out of this thing.”

A week ago, Bridgewater Associates, a research firm, estimated that losses from the credit crisis we’re now mired in might amount to $1.6 trillion when all is said and done.

People, everybody needs to sit up and take notice . . . the American public needs to READ more and get informed.  Things are just getting worse . . . .

My suggested list for today follows:

• FANNIE MAE UGLY - WSJ
• Fair Game - New York Times
• Agencies' problems could deepen impact of credit woes in Asia
• Mortgage Giants Face Pressure Over Capital
• PAGE ONE WALL STREET JOURNAL - Monday July 14 - (Posted in time for the Asian Market to respond to auction of Freddie Notes)  Treasury and Fed Pledge Aid

Staggering Arrogance the Judge Rules

Former Refco chief executive Phillip R. Bennett, was sentenced to 16 years in federal prison after pleading guilty to 20 crimes, including securities fraud.

District Judge Naomi Reice Buchwald lambasted Bennett, and others: "You and others like you play a truly high-stakes poker game."

White-collar defendants are often staggeringly arrogant, and just don't think they'll get caught."

Refco, at the time the biggest independent U.S. futures trader, led by Bennett did a $670 million initial public offering in August 2005 AND filed for bankruptcy two months later.

Apparently, Bennett controlled a company who owed Refco more than $400 million as he was using that company to conceal his investor's losses.

His sentence is set to begin 9/4/08; and he goes home to Britain via deportation when he gets out.

~~~~~~~

And so the mighty fall . . .