When I see the documentary “Inside Job,” I can’t help thinking, that the reason only Bear Stearns and Lehman was allowed to fail among the big banks, was that the people making the decisions were almost exclusively wealthy people that would have been reduced to ordinary peasants living off their SIPC coverage if the financial industry as a whole had been allowed to collapse.
"Market top is never insight when vision is vitiated by hope." - Jesse Lauriston Livermore ( Reminisences of a Stock Operator )
Not sure how what I said qualifies as "boundless optimism", but then again, most of the time your posts make no sense.
What if it drops 50% to $30 in a week, then gets halted in the following days and re-opens weeks later on the pinksheets? Scandals are rarely gradual.
When I first started studying electrical engineering, most of it made no sense. When I first started studying physics, most of it made no sense. When I first started studying finance, most of it made no sense. Just keep on studying, it will eventually start making sense! I'd start with the helpful chart @Maverick2608 posted just a few posts ago, it nicely demonstrates this particular point. Good luck my friend.
The market always knows before the news becomes public. Obviously a 50% drop in a week means something is up. My "$1 price" comment was an exaggeration.
Agreed, but the price was a decent indicator that you should be pulling your money from MF Global. I am not sure when MF Global stopped allowing withdrawals, but if I had money there I would have been pulling when the stock went below $5.