More economic bad news, and a stock tip.

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ALLO

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Here is a little article about how the bond market is about to crumble. Now bonds are thought to be one of, if not the safest place to put ones money. What does that tell you about how bad it is if one of the safest places to put money is about to collapse?

Imagine a country such as Venezuela announced that it was bailing out an investment bank, then just days later said it was nationalizing its mortgage industry, and then just days later that it was bailing out its biggest insurance company, and then just days later its government pledged 700B$ to inject into its failing banks, and then just days later its stock market fell 20%. Would you feel comfortable having your money invested in such a country, in its stock market, in its bond market or in its currency?

I hope you answered ?No? or ?Hell, No!? to the above question! So why should you feel any different about the situation if the country is called ?America?? I am going to show you that the US Bond market is on the brink of collapse and with it will come the collapse of the currency, just as you would expect to be the outcome of such ridiculously inflationary policies in any other country.

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http://news.goldseek.com/GoldSeek/1223911533.php
 
Also, here is a stock tip for those who are brave enough. I will admit, I am not in this particular stock simply because I don't have the money, MSWETBACK, what do you think? For those who don't know, you can make money by "shorting" a particular stock. You are basically betting that the stock price will drop, and all the while cleaning up financially while the company tanks. People do it all the time.

Here is the sad story of a grocery store chain.

Safeway (SWY) is one of the largest food retailers. As the AP pointed out, Safeway and its peers are struggling with changing shopping habits and how to price goods. Agriculture-based products are up, but that does not mean they can be passed to consumers. The profit margins at the company are already tiny. Last year, it made only $451 million on over $10.1 billion in sales. As of the last quarter, the firm had $4.6 billion in debt and $326 million in cash.

With the banks hoarding cash, credit lines frozen, a company just cannot operate this way. As of close Friday, this stock was trading at over 20.40 a share. I would short the hell out of this stock. Unless a miracle comes about( which its not) and the financial situation magically gets better, watch this stock tumble as its cash reserves are used up, and all it is left with is billions in debt.
http://money.aol.com/investing/companies-hit-hardest?icid=200100397x1210727540x1200630933
 
-JP- said:
Isn't short selling still temporalily banned by the SEC?
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There were only certain companies on that list( I believe financial companies and such), and I think that ban has passed.
 
Yeah, its expired, and it WAS only for banks and other financial institutions, so short away, LOL.
 
Ms.Wetback said:
While it makes sense what you are saying Allo, I do not know enough about the company to make a fair assessment. I think a lot of companies are going to be struggling. I also like Under-Armour as a short. My husband and I love their products but in all honesty I do not see a lot of people buying $20 underwear in the near future.
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If I'm correct, that is the whole point, is it not?!?! I was looking at another this morning that I am interested in doing this with. Can you, or Allo go a little further into it with us? I like others, want to make a few investmenst right now while it's low but I'm not as educated about as I would like. This is the one I'm interested in and why:

Shares of Chesapeake lost more than a fifth of their value Friday and the company announced that Chief Executive Aubrey McClendon had sold "substantially all" of his stock in the company last week to meet margin loan calls.

What do you think?????

Thanks,
Z-
 
Short selling is the selling of a stock that the seller doesn't own. More specifically, a short sale is the sale of a security that isn't owned by the seller, but that is promised to be delivered. That may sound confusing, but it's actually a simple concept.

This is what I want to do with Chesapeake Energy. What are your thoughts?
 
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