Be the bid!

[notyoueither]

Originally posted by KrazyHorse
I did read what you wrote.

The re-evaluation had to happen. The willy nilly save one entity, bail out another, let some fail... all without prior notice (or in direct contradiction with prior notice) and off public balance sheet crap can only increase fear (volatility) and cause the re-evaluation to overshoot.

This still makes no sense.

The government can increase volatility by introducing new risk factors into the marketplace (the chance that you won't get bailout money) but the increased volatility from this in itself CANNOT directly reduce average stock prices below that in the counterfactual world of no bailouts at all.

What if the actions of governments and regulators result in a loss of faith in the system?

[KrazyHorse]

What does that even mean?

[DanS]

Fed cuts rates to 0 - .25%. Are we Japan, after all?

Mortgage rates should be exceedingly low in a few days.

10-Year treasury bonds are yielding only 2.4%.

[snoopy369]

At what point do they cut rates to negative numbers (or is that what you mean by 0-.25%, and not the range)? Will it actually start costing money to loan it out?

[DanS]

I mean by 0 - 0.25% that this is the range specified by the Fed. I've never seen a range given before.

Next, they'll do more quantitative easing rather than cutting rates. They did this a couple of weeks ago by buying $800 billion in mortgage-backed securities. The effect was that mortgage rates plummeted 1% in a couple of days, as I recall.

So far today, Wells Fargo is quoting 5% for 30-year fixed rate mortgages.

[Japher]

XOMA, is my next penny for now. way undervalued.

[DanS]

Why do you invest in penny stocks? Is it just for fun? Or are you trying out various investment rationale?

10-year treasuries at 2.28%, or almost a full percentage point lower than the trailing twelve month dividend yield on the S&P 500.

[Japher]

$2-3k to play around with. My 401ks are invested in mutual funds and blue chip stocks, my kids are invested in blue chips, mid-cap and index funds, and I have a ROTH IRA that I never fund that has about 2 thousand that I play with and about 1500 cash in my normal investment account that is otherwise basically dominated by DNA stock that I've had for 10 years or so. So, why not? I haven't lost much.

[notyoueither]

Originally posted by KrazyHorse
What does that even mean?

Blue.

[Felch]

Originally posted by Felch
I think it's $7.95.

Turns out it's $12.99 unless I make a ridiculous number of trades per year.

[DanS]

OK, so you would be paying at least 13% on your money to move it around.

How much is your Etrade cash sweep account paying?

[snoopy369]

On a 13% commission, I'd not even consider trading. If you can beat 16% reliably (you should be able to get something around 3% through free means) then you should be working as one of the top fund managers in the world...

[Aeson]

Think or Swim offers $5 stock trades IIRC. (or $2.50 per option.) Free ICH transfers to and from your bank account as well. They recommend at least 2-3k to start an account, but I've traded with only $300 in the account, no problems.

There might be better deals out there, but that was the best I could find last year when I was looking around...

[Felch]

Just took a look at Think or Swim. I think I'll close the ETrade account and switch over. Haven't made any trades yet, so I haven't lost anything.

As far as penny stocks go how about VETSW?

[Japher]

not even a penny