The Bank of Mom and Dad Shuts Amid White Collar Struggle

[BCEagle91]

<br>

<p>You have a different definition of speculation than I do. I consider
speculation buying/selling an asset (stock) without knowledge of the
underlying way it generates value. This typically happens when people
buy on a trend of the stock price or another piece of data unrelated
to what the company in question does like the value of a broader
measurement of the stock market.</p>

<br>

<p>Perhaps you could find your definition in a dictionary or finance book
and cite the source. It isn’t one that I’ve run into before.</p>

<br>

<p>Basically, someone who tries to feed off of the actions of other
investors towards a company as opposed to the action of the company
itself. This also includes activities such as buying based upon
buying/selling by insiders.</p>

<br>

<p>An extreme perspective.</p>

<p>Do you know of anyone else that shares your perspective that has written
it down on a webpage?</p>

<br>

<p>None of this activity ever made a company more productive or
profitable. It does not make the society wealthier and is more akin to
gambling, as you are betting on the actions of others in the market as
opposed to betting on the employees of the company.</p>

<br>

<p>Have you ever been granted stock options?</p>

<br>

<p>The fact that thousands of people sit in front of a monitor watching
stocks trade, trying to pick out a trend to trade on as a way to
make a living bothers me. If they spent that time actually trying to
learn about companies, their assets, products and markets, they
would actually have a basis for buying (or selling) stocks that
would have a basis in how capitlal should be allocated to successful
operations (and away from unsuccessful operations). This makes an
economy efficient in the use of its resources both financial and
intellectual. If Bernie Madoff had listed his Ponzi Scheme, the
trend followers (speculators) would have been sucked in by it
because they don’t do their due dilligence. Bernie wouldn’t have
even had to smooth talk them. They see a predictable trend and jump
on it. And I think we can all agree that Bernie Madoff did not help
the economy.</p>

<br>

<p>Learning about fundamental analysis is hard. Technical analysis
comparatively easier. Enron was the real Bernie Madoff. Now let’s
say that you knew the fundamentals of the company and sold the
company short in early 2001. Would you have a problem with that?
That’s making a trade on the fundamentals - you know that the
company is a fraud so you’re going to sell it at a high price and
then buy back the shares at a lower price.</p>

<br>

<p>Buying for a short term expected movement based upon upcoming short
term prospects (based upon actual research of the company’s
operations) is not necessarily speculation, but probably not the
best way to make money. For example, if you bought Apple stock
recently based upon the the success of the iPad looking for the next
quarter’s earnings, I think that everyone else is following this
news and has already factored this information into the stock
price. Now, if you think the iPad is going to revolutionize how we
communicate both data and applications (the ultimate thin client
with the best size display for the compromise between computer and
PDA), and Apple will be able to gain longer term market share (and
thus profitability) from this, you are an investor.</p>

<br>

<p>What if you use stops?</p>

<br>

<p>FWIW, I don’t think the iPAD will be that successful, as most people
are not ready for the thin client (remote computing) and it won’t
replace other devices. If I am sitting, I just assume have a
full-function laptop. If I am on the go, give me a phone with a good
display.</p>

<br>

<p>dstark has one and likes it.</p>

[DocT]

<p>“You have a different definition of speculation than I do. I consider speculation buying/selling an asset (stock) without knowledge of the underlying way it generates value.”</p>

<p>^^then I guess most people who buy stocks are really speculators.</p>

[goaliedad]

<p>BC,</p>

<p>You have engaged in every tactic that you have accused me of using, including the personal insults.</p>

<p>I generally avoid discussions where you go off on your ill-formed pseudo-debates with other posters, but I like jym, he is a good guy and you were needlessly bashing him while leaving your own posterior hanging out in the wind. I couldn’t resist. I look at you in the same way I look at Dad II.</p>

<p>My opinion is that you are full of yourself. I’ve read enough of your posts to know someone who is blind to his own reasoning and is careless in reading others’ ideas that don’t agree with your own.</p>

<p>I’ve had enough of your antics.</p>

[BCEagle91]

<br>

<p>You have engaged in every tactic that you have accused me of using,
including the personal insults.</p>

<br>

<p>Yes. But you threw the first punch.</p>

<br>

<p>I generally avoid discussions where you go off on your ill-formed
pseudo-debates with other posters, but I like jym, he is a good guy
and you were needlessly bashing him while leaving your own posterior
hanging out in the wind. I couldn’t resist. I look at you in the same
way I look at Dad II.</p>

<br>

<p>I see. You still threw the first punch.</p>

<br>

<p>My opinion is that you are full of yourself. I’ve read enough of your
posts to know someone who is blind to his own reasoning and is
careless in reading others’ ideas that don’t agree with your own.</p>

<br>

<p>I see, more insults.</p>

<br>

<p>I’ve had enough of your antics. </p>

<br>

<p>You already said that in your previous post.</p>

[BCEagle91]

<br>

<p>then I guess most people who buy stocks are really speculators. </p>

<br>

<p>I wonder what he thinks of mutual funds.</p>

[menloparkmom]

<p>ok, can you two take it outside please? reading this is like watching a dog fight… lets’ get back to the topic in the original post…</p>

[anothercrazymom]

<p>Yea menloparkmom! They need to start their own thread, or maybe get out the yardstick?</p>

[DocT]

<p>After a long hard day, its sometime relaxing to find such amusement in CC.</p>

[goaliedad]

<p>

ok, can you two take it outside please? reading this is like watching a dog fight… lets’ get back to the topic in the original post…

I apologize for giving BC the continued forum after jym was finished with his antics. Carry on.</p>

[menloparkmom]

<p>yikes! you think watching a dog fight is amusing?? I’ll never understand men, lol!</p>

[menloparkmom]

<p>goaliedad- jym is a woman, just so you know…</p>

[goaliedad]

<p>The his in the above post was referring to BC. Sorry for the unclear pronoun usage.</p>

[jym626]

<p>Shucks, menloparkmom- you let the cat out of the bag.</p>

<p>And speaking of bags (and I dont mean me or menloparkmom), I headed for the barf bag quite a while ago. I applaud your efforts and tolerance, goaliedad. Hard to have a conversation with people who cant seem to see that they are doing what they accuse others of. Oh well-- happy trails…</p>

[goaliedad]

<p>Thanks, jym.</p>

[jym626]

<p>Oh, and I think this was the line menloparmom was referring to, goaliedad

but I like jym, he is a good guy and you were needlessly bashing him while leaving your own posterior hanging out in the wind. I couldn’t resist. I look at you in the same way I look at Dad II.

I love it on so many levels!! Shhh… I won’t tell my DH.</p>

[DocT]

<p>"yikes! you think watching a dog fight is amusing?? I’ll never understand men, lol! "</p>

<p>Apparently you don’t spend much time in the politics forum. This argument is nothing.</p>

[goaliedad]

<p>Oops! That one even slipped by me, jym. My apolgies. We’ve exchaned PM’s before and I know you are female. If it makes you feel better being a “good guy” is a compliment. Comes off a whole lot better than being a “good gal” when talking about people.</p>

[jym626]

<p>Thanks, goaliedad. Appreciated and understood on all fronts. Lets wait for BC to get his final parting post parse in so we can all call it a night.</p>

[dstark]

<p>Goaliedad…I do like the iPad. Not that it matters.</p>

<p>My view of speculation is broader than yours.</p>

<p>I think buying apple stock is a speculation…even if you intend to hold it for the long term.</p>

<p>I was an option market maker for a long time. Thanks for trashing my profession. :)</p>

[menloparkmom]

<p>“Apparently you don’t spend much time in the politics forum.”</p>

<p>Not any more. Not after the vitriol posted when Obama won…</p>