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Richard Whitney Advocates Buying
Old 10-21-2008, 03:59 PM   #1
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Richard Whitney Advocates Buying

"Shortly after the New York Stock Exchange opens on the Morning of October 24, stock prices begin to drop dramatically and the volume of trading breaks all previous records. By 11:30 a.m. panic selling prevails as more and larger blocks of stock are thrown on the market.

The ticket tape that reports prices outside the Exchange falls increasingly behind. In the offices of J.P. Morgan and Company, where a group of top investment bankers are meeting, cooler heads prevail. In an effort to reverse the tide, Richard Whitney, vice president of the Exchange, is sent to the floor to purchase millions of dollars worth of key stocks. This action is successful and prices begin to steady.

Activity on the Exchange is relatively stable the next day, but on October 28, prices again tumble. This time the bankers do not try to halt the decline. On October 29 panic selling increases. The ticker tape is two and one-half hours behind and by the end of the day a record 16,410,030 shares have been sold, with a total loss in value of 880 issues estimated by The New York Times to exceed $8,000,000,000. Thousands of investors see their fortunes wiped out.

Economists, bankers, and politicians grope to find an explanation. Most believe that the economy is still sound and the market will soon recover. Some say it is merely a momentary psychological aberration. Secretary of the Treasury Andrew Mellon insists that the stock market debacle is an illness that will soon run its course and cure itself. Although there are signs that the problem goes much deeper, most prefer to ignore them. Examination of statistics reveals an increasing unemployment rate during the year prior to the crash and a great decrease in construction activity. Still most industry continues to prosper throughout the year and the automobile companies produce a record 3,000,000 cars."

"The Panic and Depression of 1929"
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Old 10-21-2008, 04:23 PM   #2
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Old 10-21-2008, 04:40 PM   #3
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LOL, ditto.
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Old 10-21-2008, 04:41 PM   #4
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It was another Payday and I was tired of Mr. Goodbar. I saw Miss
Hershey standing behind the Powerhouse on the corner of
Clark and
Fifth Avenue when I whipped out my Whopper and whispered, "hey
Sweetheart, how'd you like to Krunch on my big hunk for a Million
Dollar Bar?" Well, she immediately went down on my Tootsie Roll,
and it was like Pure Almond Joy! I couldn't help but grab her
delicious Mounds because it was easy to see that this little
Twix had the Red Hots. It was all I could do to hold the Snicker
and Crackle as my Butterfinger went up her tight little Kit Kat
and she started to scream "Oh Henry, Oh Henry!" Soon she was
fondling my Peter Pan and ZagNut and I knew it wouldn't be long
before I blew my Milk Duds clear to Mars that gave her a taste of
the old Milky Way. She asked me if I was into M&M, but I said,
"Hey Chicklet, no kinky stuff." I said "Look you little Reese's
Pieces, don't be a Zero, be a Lifesaver. Why don't you take my
Whatchamacallit and slip it up your Bit 'O' Honey?" (What a piece
of Juicy Fruit she was, too!) She screamed, "Oh Crackerjack,
you're better than the Three Musketeers!" as I rammed my Ding Dong
up her Rocky Road and into her Peanut Butter Cup. Well, I was
giving it to her Good 'N' Plenty, when all the sudden...my
Starburst! Yeah, as luck would have it, she started to grow
Chunky and complained of a Wrigley in her stomach. Sure enough,
nine months later, out popped...........Baby Ruth!
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Old 10-21-2008, 05:02 PM   #5
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Son, we live in a world with
walls that must be guarded.

Who's gonna do it? You?
You, Lt. Weinberg?

I have more responsibility
than you can fathom.

You weep for Santiago
and curse the Marines.

You don't know what I know.
Santiago's tragic death saved lives.

And my existence,
while grotesque to you, saves lives!

But deep down, in places
you don't talk about at parties, -
- you need me on that wall.

We use words like
honour, code, loyalty.

They're the backbone of our lives.
You use them as a punchline!

I haven't the time or inclination
to explain myself -
- to a man who needs my protection -
- but questions the way I do it.

Better just to thank me.
Or pick up a gun and stand a post.

But I don't give a damn
what you think you are entitled to!
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Old 10-21-2008, 05:08 PM   #6
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I guess the OP is trying to draw a parallel between the relative optimism of market mavens following the initial drop in the stock market in 1929 and the optimism expressed by modern market mavens like Warren Buffet after this month's big drop.

We all know that, in the end, they were wrong in 1929, and I assume that the OP thinks that they are wrong today. He apparently is not the only one:

In hard times, some flirt with survivalism - Economy in Turmoil - MSNBC.com
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Old 10-21-2008, 05:14 PM   #7
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Sounds like a "fulfilling" lifestyle:

"In the last three or four years, he has led his clan away from what he calls their former “yuppyish lifestyle.” They no longer eat out, cook most meals from scratch, and rarely drive their one car. They also are all learning practical skills — such as sewing, nursing and wielding a gun for self-defense. "

So do they have the hollow tooth filled with cyanide in case they need to commit suicide on short notice?
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Old 10-22-2008, 05:45 AM   #8
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Every significant market drop in my living memory has been filled with people bringing up the Great Depression and how "this time" it looks just the same. Maybe it will be the same this time. I don't know but the earlier big drops all looked about the same as this one. We always have some "terrible thing" that will drive our economy into total ruin. There's nothing we can do to stop it. Flee for your lives....
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Old 10-22-2008, 08:33 AM   #9
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So if someone held steady through the great depression, how would they have done?
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Old 10-22-2008, 08:38 AM   #10
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So if someone held steady through the great depression, how would they have done?
Stock returns during great depression ??
Recovery times after the Great Depression
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Old 10-22-2008, 08:53 AM   #11
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So if someone held steady through the great depression, how would they have done?

index fund probably break even in the late 1930's. stocks it depends on the name, but a lot of companies went belly up.
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Old 10-22-2008, 09:55 AM   #12
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Wow. Between this thread and the news that LIBOR rates are finally getting back to normal, I'm thinking this may be time to buy. But what do I know...
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Old 10-22-2008, 10:07 AM   #13
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LIBOR is old news, earnings are OK but guidance for the future is horrible. especially for commodity companies. financials and commodities are like 40% of the SP500 and rallied around 50% off the lows in the last 2 weeks. time to give back the gains and that means more downside. probably to the high 800's.

in a bull you usually get a correction every year as investors cash out of one sector and buy into another sector. same thing is happening now except on a larger scale
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Old 10-22-2008, 07:08 PM   #14
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SELL SELL SELL

The world is coming to an end. Get out while you can.....

But, what will you do with the money?
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Old 10-22-2008, 07:24 PM   #15
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So if someone held steady through the great depression, how would they have done?
Quite well - depending. Ben Graham pointed out had you dollar cost averaged from the peak before the 29 crash thru 1948/49 you would have made 8? percent or so - good money for the period.

And then , and then even before Pssst Wellesley(you knew I couldn't resist) there was Wellington 1929 and Dodge&Cox's 1931 first fund - both shots a balanced dast I say valuestock/fixed.

Now coming into this one with a balanced index lump in retirement has NOT been great fun - I understand stay the course and the power of balanced index, hurry up just stand there, press on regardless - the noun I'm searching for is called 'fun' in any other word/s.

Persistance and Patience sucks - but for me it's the only game in town.

SEC portfolio yield may not have the cache of my 60's/70's romance with slice and dice or gold, guns and freeze dryed food but I expect it to get the job done.

heh heh heh - Sold the last of my share from 1968 of timberland now Oregon vacationland in 2006 - I hope I get to croak a Spotted Owl and get away with it before I pass.
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Old 10-22-2008, 07:50 PM   #16
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Ive advocated buying since Down er DOW was 12000. Where is my cookie and strawberry rhubarb pie?
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Old 10-22-2008, 10:32 PM   #17
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Ive advocated buying since Down er DOW was 12000. Where is my cookie and strawberry rhubarb pie?
You are probably gonna have to award yourself your own atta boy - given the general mood now a days. Just don't let anybody convince you it's really an 'ah sh3T!'

Balanced index, psst Wellesley, dollar cost average on!

Talk wise - you can whine and complain with the rest of us - Do wise however, do the right thing.

heh heh heh -
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