Off-Topic DiscussionsThis is the area for general banter/chat. There are rules for this section, please read the sticky post in the section before participating. Enter at your own risk as some posts in here may be NSFW
If I bought a stock at $100 and it is now $50.........I have lost 50% of my "initial investment" but, no one actually has my other $50.
Not necessarily??? you don't consider a 50% loss of your initial investment a real loss because you still have part of it?
What I was referring to was to a post which stated that there was never any real money made the profit is all on paper.
If you buy a stock at $100.00 it doubles, now it is $200.00, you hold it and it drops to $5.00 a share, how much have you lost, $195.00 or $95.00? Either way you have lost 95% of your initial investment even though you still have $5.00 someone does have the other $95.00 and that loss is real no matter how you look at it.
__________________
2003 7.3 SD, CC, 4x4 with FX4 package, white and 100% stock
[/b][/i][/color]There are a few pockets of industry out there that are doing OK but, if no one is buying anything.......they are the exception.
[color=blue][i][b] The same people/groups who used to be buying those loans. It's just now they are sitting on their money........hence the liquidity problem.
Who are the exceptions??????????? I want to be one
__________________
2003 7.3 SD, CC, 4x4 with FX4 package, white and 100% stock
If you buy a stock at $100.00 it doubles, now it is $200.00, you hold it and it drops to $5.00 a share, how much have you lost, $195.00 or $95.00? Either way you have lost 95% of your initial investment even though you still have $5.00 someone does have the other $95.00 and that loss is real no matter how you look at it.
Forget stocks for a minute.
Say you buy a wigdet (anything you can imagine that's real) for $100. Then the next day no one will buy your widget at any price. What's it worth? $0.
Who has the money? The guy you bought that widet from, even if he stuffed it in a mattress. You have something that's worthless, unless you can create a market for widgets and/or convince someone to buy it from you. If all of a sudden widgets are the "in" thing to have, then you might be able to sell it for $1000. But say you hold on to your widget and don't sell it, and then the next day no one will buy it for any price. You widget is again worth $0, even though the day before you might have considered it worth $1000. You haven't lost $1000, but just what you've paid for it, the original $100.
The guy you bought your widget, on the other hand, took that $100, bought 100 widgets at $1 each when they were nearly worthless, and then that one day that they were in demand, he sold them all for $1000 each, and now has turned that one widget into $100,000 cash. It's a matter of timing and how much risk he took. If he waited too long, and widgets were worthless again, he would have had a $100 loss also, but the potential to sell his 100 widgets if and when they are worth something more than $0.
Not necessarily??? you don't consider a 50% loss of your initial investment a real loss because you still have part of it?
It's only a "loss" if I sell it for the $50. If I don't sell, I haven't "lost" anything.....yet.
In actuality however, I "lost" the whole $100 when I bought the stock in the first place.
Quote:
If you buy a stock at $100.00 it doubles, now it is $200.00, you hold it and it drops to $5.00 a share, how much have you lost, $195.00 or $95.00? Either way you have lost 95% of your initial investment even though you still have $5.00 someone does have the other $95.00 and that loss is real no matter how you look at it.
As I mentioned above, the person I bought the stock from has my whole $100 but...........it's not a "loss" until I lock it in by actually selling it for the $5.
[/color][/b][/i]It's only a "loss" if I sell it for the $50. If I don't sell, I haven't "lost" anything.....yet.
In actuality however, I "lost" the whole $100 when I bought the stock in the first place.
[i][b][color=blue]
As I mentioned above, the person I bought the stock from has my whole $100 but...........it's not a "loss" until I lock it in by actually selling it for the $5.
That is correct, unless..... it goes to zero and the company goes under and there are no assets to sell off and it is worth ZERO and you get nothing!
__________________
2003 7.3 SD, CC, 4x4 with FX4 package, white and 100% stock
Say you buy a wigdet (anything you can imagine that's real) for $100. Then the next day no one will buy your widget at any price. What's it worth? $0.
Who has the money? The guy you bought that widet from, even if he stuffed it in a mattress. You have something that's worthless, unless you can create a market for widgets and/or convince someone to buy it from you. If all of a sudden widgets are the "in" thing to have, then you might be able to sell it for $1000. But say you hold on to your widget and don't sell it, and then the next day no one will buy it for any price. You widget is again worth $0, even though the day before you might have considered it worth $1000. You haven't lost $1000, but just what you've paid for it, the original $100.
The guy you bought your widget, on the other hand, took that $100, bought 100 widgets at $1 each when they were nearly worthless, and then that one day that they were in demand, he sold them all for $1000 each, and now has turned that one widget into $100,000 cash. It's a matter of timing and how much risk he took. If he waited too long, and widgets were worthless again, he would have had a $100 loss also, but the potential to sell his 100 widgets if and when they are worth something more than $0.
Almost everything is a matter of timing; stocks, homes, widgets, land. If you have it and it is wanted by others you are in a good shape. But in general when everything has gone down in value and money is not flowing through the middle class and the upper middle class where is the money?
__________________
2003 7.3 SD, CC, 4x4 with FX4 package, white and 100% stock
And in that case, the individual I bought the stock from has already taken my original $100 and spent it on a nice dinner.
Well if you lost your job and all your money that you invested in stocks and had to take a job as a waiter and "that guy" came in and gave you a nice tip then you would get some of your money back. Trickcle down economics
__________________
2003 7.3 SD, CC, 4x4 with FX4 package, white and 100% stock
Last edited by Believer45; 02-01-2009 at 08:40 AM.
Reason: fix quote
Almost everything is a matter of timing; stocks, homes, widgets, land. If you have it and it is wanted by others you are in a good shape. But in general when everything has gone down in value and money is not flowing through the middle class and the upper middle class where is the money?
Retirees, that have had their pensions cut in 1/2 or their Roth's or what ever go to 1/2 or the value it was a year ago. Younger guys have some time for a rebound but older folks don't.
Then there is the double whammy. If you're over I think 72 you HAVE to withdraw the money even though you don't want and possibly don't need to. so you are being forced to withdraw depreciated funds. And pay taxes on depreciated funds.
__________________
Too much junk/toys to mention, ever changing due to too getting bored too quickly. I need a 10 step program!
Want to call? I'm in the book. Want to argue....First explain the square root of negative one....lol
Retirees, that have had their pensions cut in 1/2 or their Roth's or what ever go to 1/2 or the value it was a year ago. Younger guys have some time for a rebound but older folks don't.
Then there is the double whammy. If you're over I think 72 you HAVE to withdraw the money even though you don't want and possibly don't need to. so you are being forced to withdraw depreciated funds. And pay taxes on depreciated funds.
I think at some point in time I will cash out everything and not count on gambling on any type of stock, I want something real. I have never lost money on land. I have bought some and held it for much longer than I wanted, but I have always profited. But I guess that at sometime and somehow our government will put some sort of tax on land sales or restrictions that kills that also.....
With the way everything seems to be headed, I feel guilty for having children, I hope I can find the right path to send them down.
__________________
2003 7.3 SD, CC, 4x4 with FX4 package, white and 100% stock
I think at some point in time I will cash out everything and not count on gambling on any type of stock, I want something real. I have never lost money on land. I have bought some and held it for much longer than I wanted, but I have always profited. But I guess that at sometime and somehow our government will put some sort of tax on land sales or restrictions that kills that also.....
With the way everything seems to be headed, I feel guilty for having children, I hope I can find the right path to send them down.
I have 4 Cd's in the bank earning a paltry 4.7% and because of the FDIC limitations I put 100 in each. I know it's now 250 each but i didn't want to take chances.
Stupid as this may sound I also set up a retirement fund for my daughter when she was 5. My thinking was that who the heck knows if SS will be alive when she retires and will companies like GE and IBM still pay pensions? She is set now.
Now what the heck to do with 8 houses that have lost 20-30% in value. hey they are all rented and we have a slight positive cash flow. Slight!
__________________
Too much junk/toys to mention, ever changing due to too getting bored too quickly. I need a 10 step program!
Want to call? I'm in the book. Want to argue....First explain the square root of negative one....lol
Hedge Funds make an initial purchase of a bond or derivative and then used the speculative market value of that bond as colateral to borrow money to buy more debt.
There is no "liquidity" in the first place. God I hate that word.
These things were going to tank two years ago but the purposeful laxing of lending standards and creation of Sub-Prime loans kept the bubble inflated and bought the CEO's and managers more time to pay out their bonuses and get out.
Making sure this never happens again is as simple as reregulating the lying, cheating, thieving, bankers.
Want a good conspiracy theory?
Obama will spend billions upgrading infrastructure and the government will have to sell millions in bonds to do so. Meeting this debt obligation will bankrupt the government and force them to sell-off this infrastructure to private parties to avoid defaulting on the debt.
These private parties will have nice, shiny new roads and bridges that they will own for pennies on the dollar with little to no maintanence costs for several years.
The AutoGuide.com network consists of the largest network of enthusiast-owned enthusiast-operated automotive communities.
AutoGuide.com provides the latest car reviews, auto show coverage, new car prices, and automotive news. The AutoGuide network operates more than 100 automotive forums where our users consult peers for shopping information and advice, and share opinions as a community.
), AIS, 
Linear Mode
