InvestYoung

At The Bottom!

I’m starting to wonder if Wall Street finally hit rock bottom. With all the bad news swirling around Wall Street these days the market seems to be somewhat stable. Of course I could be completely wrong and things get worst in a heartbeat. Like if the automakers don’t get their loans, the market will drop a few percent. But President Bush isn’t going to let the automakers die on his watch. He’s going to keep them alive for the time being. I also think that the Senate doesn’t really listen to analysts who say we could lose as many as 3 million U.S. jobs next year without the loans. So, should we loan (give) them the money, or not? After looking at things much closer I’m still not sure what the best move on this issue is. Whatever happens is going to happen, you can’t stop it. If the automakers fail we’ll just have to come together as a nation and deal with it.

U.S. Automakers Meet Again!

The U.S. automakers are ready to submit their restructuring plans to Congress. These plans where demanded by Congress before they would consider giving them the $25 billion bailout money they need to survive in these tough times. I’m still dead on against on given them the bailout money. Most of there problems are because of their greed. They’ve always fault against on having fuel standards for cars and trucks. And they never really wanted to build a more fuel-efficient car. Why do you think other automakers from other countries have sold so many cars in the U.S? These other automakers listen to what the consumer wanted and built it. So now that they’re in trouble there now ready to make the change. I was reading that some of the changes would be more fuel-efficient cars and stop making their unpopular brands. I also read that their also going to cap their executive’s pay, which is a given. And the most important is restructuring their contracts with the United Auto Workers union. If they can’t get these contracts worked out they will be finished. And the UAW union knows this, so they will have no choice but to listen and give in on things like cutting pay and health care. So if they do get the money, which they will Congress should also break the contracts with the UAW unions or force them to cut back. I’m not even sure if this could be done, but it should.

No More Jobs!

I wonder how the Dow Jones will end today. With the Dow Jones ending under 8,000 points yesterday it’s anyone’s guess how it will end today. Well, I would like to take a shoot at saying where it will end up for the day. I think it will end up around 300 points. The day will start off slow, because of the weak unemployment benefits report that just came out. More and more people are losing their jobs at a rapid rate. And as we get closer to the Holiday season we’ll have a go understanding how people will spend. That’s the problem, no one is buying things, and you really can’t blame them. Anyway, around 1PM there will be so many bargains laying around investors will start buying. And when the buying starts everything starts to go up. So if you’re going to buy stocks today make sure you buy around 11AM. This is the way I see the day going. And you know what, I could be dead wrong and the stocks could tank all day. As always, do your own research on any stock your going to buy. I will say, stay away from the automakers stocks, there all ready to go under.

Update: Looks like I was dead wrong. And it looks to be just has bad tomorrow.

Automakers Need Money!

Now it’s the automakers asking the American people to keep them in business. General Motors Corp., Ford Motor Co. and Chrysler LLC are asking Congress to approve the aid to get them alive. GM, the nation’s largest automaker posted a $2.5 billion quarterly loss. And now they feel they’re going to run of cash by the end of the year, cry me a river. The automakers first take avenge of us with their high prices for cars and now want us to loan them money. I’m so sick and tired of all these businesses running to the government asking for money. Why don’t they do what people around the country do, file for bankruptcy and reorganize themselves. This way the creditors will take ownership and they then could start with a fresh balance sheet. The problem is, when this happens a whole new management team comes in. These top guys don’t want to lose their high paying jobs, but would destroy our families in a heartbeat to save theirs. The rescue package was intended to help businesses get back on their feet and help stabilize the markets. And guess what, it’s not working. So what should be done next is let all these businesses fall apart and save the American people money. We’re heading for a recession, and in the end these businesses won’t make it. I say, stop handing out the money and lets move on. If these companies make it, great, if they don’t make it, to bad.