Stearns- gone, Lehman- Gone, Goldman Sachs- Next on the Chopping Block? Reports 70 percent drop in third quarter earnings
Economic news continue to pour in from around the world. Asian markets down– four percent or more. London exchange– pummeled. Here’s the BBC’s latest report on the continuing collapse of the global finance system..
“Losses on stock markets have continued after the collapse of fourth largest US investment bank, Lehman Brothers, which has filed for bankruptcy protection.
European stocks fell again; the UK’s FTSE 100 was down 4.4%, France’s Cac down 2.9% and Germany’s Dax down 3.2%.
Shares in Japan, South Korea and Hong Kong fell more than 5%, having been shut on Monday for public holidays.”
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Rough, ey? Well the latest news scurrying about the internet is that Goldman Sach’s just announced a 70 % drop in Third Quarter Earnings. Whoa boy.
Hope you’re ready for a bumpy ride. I try and keep my ear to the ground about the NY finance scene, and word round the cooler suggests that the “Shorters” are gonna get the best of all these brokerages.
What is shorting? or.. What does Short-Selling a stock mean?
According to the wikipedia entry:
“In finance, short selling or “shorting” is the practice of selling securities the seller does not own, in the hope of repurchasing them later at a lower price. This is done in an attempt to profit from an expected decline in price of a security, such as a stock or a bond, in contrast to the ordinary investment practice, where an investor “goes long,” purchasing a security in the hope the price will rise.”
Hold on now, let’s just think about it. You see a stock at 10, and you know it’s gonna drop (let’s say you hear they have a drop in earnings). You SELL 10,000 shares of this stock–BUT YOU DO NOT OWN THEM! When it drops to 6 later that day, you’ll finalize that purchase.
America, I ask you. Where but in finance could such a practice be called anything but a “hustle” — economic three card monte?
Now… how’s that fake economy treating ya?
Whup… hold on… news flash…. Urban Outfitters is having a sale on their Fall Douche Line — OFF YOU GO!!!! Frolic and shop…
As for the rest of us… I’ll see you at the Times Square Soup Kitchen.
One Love, One Hope, One Struggle,
–Reverend Manny and the Twilight Empire
