tag:blogger.com,1999:blog-316774933262163695.post1445947425173531713..comments2023-10-11T08:31:50.397-04:00Comments on moneythoughts: Live By The Sword And Die By The Swordmoneythoughtshttp://www.blogger.com/profile/08462893426608294171noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-316774933262163695.post-38897732487635541962010-02-03T15:15:52.617-05:002010-02-03T15:15:52.617-05:00Winslow, I agree, something needs to be done to ma...Winslow, I agree, something needs to be done to make everyone more responsible for their debts. The bailout was just that a BAILOUT. A better system of keeping everyone on the straight and narrow would be ideal. I know there are times due to illness (that's why we need reform in health care) that a family winds up with huge debts from no fault of their own. But, these type of events don't happen to everyone, thank God. Children in school should be taught how to survive in a complex financial world. That would be a good first step.moneythoughtshttps://www.blogger.com/profile/08462893426608294171noreply@blogger.comtag:blogger.com,1999:blog-316774933262163695.post-28761174793445081912010-02-03T13:54:34.080-05:002010-02-03T13:54:34.080-05:00There definitely should be rules about the amount ...There definitely should be rules about the amount of leverage a company can take. How would this affect a private company?<br /><br />Along with all the ridiculous activities companies have gotten away with....here is another problem....<br />a co-worker just told me his wife has over $30,000 in credit card debt........again! They are going to re-finace their house...for the 3rd or 4th time...and incorporate the credit card debt in their payments. After 1 year, they will just walk away from the house.<br /><br />I find this immoral and unethical. I'm struggling to keep up with my payments and others are allowed to make a mockery of the system. This is not right.winslowhttps://www.blogger.com/profile/13031974674813319353noreply@blogger.comtag:blogger.com,1999:blog-316774933262163695.post-5565266265608454242010-02-03T09:46:33.144-05:002010-02-03T09:46:33.144-05:00Oh Lou, you would have to put my feet to the fire....Oh Lou, you would have to put my feet to the fire. : )<br /><br />The "up Tick Rule" simply stated is that short sellers could not continue to sell a stock short until there was a trade to buy the stock, which would cause an "up tick" in its price. The way they let the things go was that hedge fund managers could just pile on and drive the stock price down to nothing without there being some buyers to cause an up tick in the price. Naturally, they have to buy it back at some price to repay the stock to the broker they borrowed it from. The difference in the price of the stock they sold it at and the price they buy it back is their profit in the stock. Sell at $100 and buy it back at $25 and you make $75 less your commission to do the trade. Pretty good work if you guess right.<br /><br />Mark to Market simply means that any asset, such as a bond or real estate is valued at the price that it can be sold in the market at a particular point in time, usually the end of a quarter, such as in a quarterly report or an annual report. If the corporation does not mark their "mistakes" down at realistic levels, then the hedge fund managers will see this and make a determination that that corporation's stock may be over priced in the market. Holding a lot of over priced real estate or bonds on the balance sheet as an asset when the real estate or bonds are only worth half the value the corporation paid for them is simply over stating the financial strength of the corporation. <br /><br />This is where corporations get themselves into trouble. Write down your mistakes and take the penalty now. Don't wait for some hedge fund manager to feel your corporation isn't being truthful with the public. Once they smell blood, it is like a shark attack. The market value of the corporation gets butchered by the short sellers.moneythoughtshttps://www.blogger.com/profile/08462893426608294171noreply@blogger.comtag:blogger.com,1999:blog-316774933262163695.post-28614950247421192352010-02-03T09:17:46.479-05:002010-02-03T09:17:46.479-05:00Okay - simple left unexplained? What is the '...Okay - simple left unexplained? What is the 'up tick' rule? And what IS 'Mark to Market'?Anonymoushttps://www.blogger.com/profile/13024392628362568010noreply@blogger.com