Lehman Brothers swirling the drain

[Purron]

Should be an interesting day, in some sense of the word.

This morning I just bought another substantial chunk of VTSAX (Vanguard Total Stock Market Index) and VFWIX (Vanguard FTSE All-World Ex-US Index), as I have been doing once a month. These choices and the timing were just according to my plan and not selected specifically for the market events we will be observing today. With any luck, maybe what we will have is a blue-light special by closing this afternoon, when I expect this purchase to go through.

On the other hand, if this is just the beginning of our market difficulties, I might wish that I had waited! I generally do better if I don't try to time the market, though.

W2R - if more people had your sense we would see much less volatility in the markets. Sure, individual stocks and sectors (think banking) would still have dramatic ups and downs, but the overall market wouldn't be as turbulent. There's a tendency to throw the "baby out with the bathwater" and dump solid performers when the news is bad.

 

[Dawg52]

Keep those cubbers over your head Dawg52 and repeat to yourself "a down market is not the time to sell" as often as necessary.

I'm still in bed. Let me know when everything is ok.

 

[FinanceDude]

I'm loading up on all the consumer products stocks I can, like PG, KFT, ADM, etc. I bought some TGT and WMT, BUD, etc. Whenever the news look dire, folks eat and drink more, and shop at discount stores......

 

[Dawg52]

I'm loading up on all the consumer products stocks I can, like PG, KFT, ADM, etc. I bought some TGT and WMT, BUD, etc. Whenever the news look dire, folks eat and drink more, and shop at discount stores......

Certainly drink more. I'm buying BUD products. I'm heavily invested. Burp......

 

[harley]

Certainly drink more. I'm buying BUD products. I'm heavily invested. Burp......

I might buy their stock, but I'm not drinking their products.

I'll stick with Diageo products.

 

[harley]

Hmmm...after checking on their imported product list, maybe BUD isn't so bad. My favorite ale (Bass) is in there, along with some other stellar products. I think I'll add that to my watch list.

 

[Milton]

Hurricane Ike doing so much damage.

Really? I had the impression that the damage to the refineries and related energy infrastructure was quite modest.

IMO, we will have a big drop right off the bat then some fluctuations when cooler heads prevail later in the day.

Could be.

a Senior VP at Lehman.... Hope he lands on his feet. I think the upper level guys usually do.

It's my understanding (could be wrong?) that "Senior VPs" at investment banks are not nearly as high ranking as the title would imply.

 

[Jay_Gatsby]

Certainly drink more. I'm buying BUD products. I'm heavily invested. Burp......

Just don't drink your profits. Then again, buying BUD stock and buying BUD products is an interesting way of getting paid to drink beer.

 

[harley]

It's my understanding (could be wrong?) that "Senior VPs" at investment banks are not nearly as high ranking as the title would imply.

Not sure how high up he is, but I was doing pretty well, and the Senior VP types were quite a few levels higher. But you're right, there were 3-4 levels above that at Megacorp, at least. And I know this isn't necessarily the best way to tell, but he's got a huge house and a really nice boat.

 

[Maurice]

It's my understanding (could be wrong?) that "Senior VPs" at investment banks are not nearly as high ranking as the title would imply.

Yep. VP in a manufacturing firm usually means you run a division or a department.

In a bank it means you've been there a few years.

Typical pyramid (with some variation)

Managing Director
Director
Vice President
Associate Vice President
Staff


Some VPs don't even have people reporting to them. Even when they do, its often less than 10.

 

[harley]

Yeah, but this is an investment bank, not a regular bank. I think he runs the bond funds for the military pension funds, or something like that. I try not to be too nosy. But my impression is that he's fairly high up the ladder. And as I said, a decent guy. But I'll still be p*ssed if he gets a golden parachute out of all of this. Just won't seem fair.

 

[Nords]

One of those days:
Those in the accumulation phase lick their chops while those in the 'decumulation' phase lick their wounds.

....I'm not looking at my account balances for six months.

10 years from now, when the Dow finally crawls above 11,000 again, you'll look back on this as the moment that all your dividend reinvesting kicked in and started buying the really cheap shares that fueled your ER...

Especially the rocket-fueled performance of that fine megacap multiconglomerate stock, Bank-of-America-Merrill-Lynch-Lehman-Bear-Stearns-Goldman-General-Electric-Chrysler.

 

[Maurice]

Harley - I should have been more specific, I was referring to investment banks. I don't know much about retail banks, I've spent most of my career on Wall Street.

 

[lets-retire]

Really? I had the impression that the damage to the refineries and related energy infrastructure was quite modest.

From everything I've coming out of the area, the refineries weren't damaged much, but there isn't any power to operate. Considering the importance of the refining capabilities I would expect the electric companies to get power to the refineries quickly, like within a few days.

At the DW's bank she works for a Vice President. In her department the VP is the second level supervisor. In the whole hierarchy of the bank the VP is about 10-15 slots above entry level, depending on how you figure it.

 

[Milton]

A VP at a retail bank is usually relatively high up the hierarchy, whereas a VP at an investment bank typically ranks somewhere between partners / managing directors and associates / analysts.

Anyway, it doesn't matter much now, as his job is probably gone. Let's hope the "huge house and really nice boat" are paid for.

Certainly drink more. I'm buying BUD products. I'm heavily invested. Burp......

See Beer vs. Stock.

 

[CitricAcid]

Just LOOK at their YIELD!!!

 

[cute fuzzy bunny]

I remember my first sales call at a bank, accompanied by one of the senior sales folks. I was...mmm...maybe nineteen years old. I was pretty impressed with myself for having gotten a VP to take my calls, and darned if everyone we talked to wasnt a VP too.

After the call was over the older sales guy clued me in. "At banks, pretty much everyone except the tellers are vice presidents"....

 

[FinanceDude]

I remember my first sales call at a bank, accompanied by one of the senior sales folks. I was...mmm...maybe nineteen years old. I was pretty impressed with myself for having gotten a VP to take my calls, and darned if everyone we talked to wasnt a VP too.

After the call was over the older sales guy clued me in. "At banks, pretty much everyone except the tellers are vice presidents"....

The trust department at a large regional bank based here has 72 VPs in their department. Once I asked someone who knew what the criteria was to be a VP, the answer?

"Length of service"

 

[saluki9]

I remember my first sales call at a bank, accompanied by one of the senior sales folks. I was...mmm...maybe nineteen years old. I was pretty impressed with myself for having gotten a VP to take my calls, and darned if everyone we talked to wasnt a VP too.

After the call was over the older sales guy clued me in. "At banks, pretty much everyone except the tellers are vice presidents"....

Many commercial banks have inside and outside titles for this purpose. That has to hurt the ego a little bit to be a VP to the outside world and a junior assistant manager of change counting to the inside crew.

 

[harley]

OK, maybe he's a Senior VP in Charge of a Whole Bunch of Other VPs and a Whole Lot of Money.

 

[cute fuzzy bunny]

Just LOOK at their YIELD!!!

LOOK AT THE BONES!!!

YouTube - Monty Python - Killer Rabbit

 

[al_bundy]

Many commercial banks have inside and outside titles for this purpose. That has to hurt the ego a little bit to be a VP to the outside world and a junior assistant manager of change counting to the inside crew.

anytime someone wants to speak to a supervisor they just get a "VP" on the phone

 

[Purron]

LOOK AT THE BONES!!!

YouTube - Monty Python - Killer Rabbit

I love this one Bunny! DH and I have been MP fans for years. This particular clip always makes me think about that bizzaro story about Jimmy Carter. You know, the one where he said a rabbit attacked him in a fishin' boat. Here's the story on Wiki about it complete with a picture of the offending rabbit:
Jimmy Carter rabbit incident - Wikipedia, the free encyclopedia

Love this quote from the story:

"Carter had gone on a solo fishing expedition in his hometown of Plains, Georgia when the rabbit approached his boat, "hissing menacingly, its teeth flashing and nostrils flared and making straight for the president", trying desperately to enter the boat, causing Carter to flail at the swimming creature with the oars from his boat."

 

[cute fuzzy bunny]

Oh my. I think I remember a 'jaws' type poster with a rabbit, open mouthed with sharp teeth, coming up from the depths that someone released around that time.

I'll bet the proceeds from the sales of that poster paid a pretty good yield.

Sorry...trying to keep somewhat OT.

 

[Purron]

Yea, we should get back on topic. Couldn't resist a little comic diversion. The market just closed under 10,000 and we are all a bit jumpy. I think I need a BIG glass of wine.