i just threw $500 at my zecco account last week and i was all set to buy a bit of e*trade for exposure in financials to have and to hold until death do us part (or until maybe the middle of the third quarter when i drop it like a wet tube sock), so why did i change my mind? take a look at some of the news articles when you click that link, then take a look at the following:
amtd is the new queen of the incumbent recession. long live the queen. why so? because we're in a recession (arguably..if not, close...if not, in a stagflation-type scenario...oh, whatever - you're not making as much money as you were six months ago unless you're shorting everything...there!). and what happens in a recession? the short answer is 'the stock market goes down'. the real answer is that stock prices go down, but some of the companies are just a-ok!
you can think of the market as crazy sam's used car lot. crazy sam is about to sell you a bmw with 2,000 miles on it for the low, low price of $5,000. now, before we raise concerns about the validity of crazy sam's original claim to the vehicle, i must mention that the car was left abandoned in the street outside his lot, with the title signed over to him lying in the front passenger seat, by a rather irrational motorist who believes that he puts himself at the risk of a crash, and possibly his own fatality, if he were to drive his car any longer. there's been a lot of this going around crazy sam's used car emporium lately. in fact, crazy sam has about 45 of these abandoned luxury cars and he just doesn't have the room in his lot for them all. what's more, he's having a hard time selling them because everyone in town just wants to get rid of their cars because they just aren't safe, plain and simple.
the best part is that you just arrived from out of town. you're visiting your friends on vacation and you need to rent a car. strangely, everywhere seems to be out of business because of places like e-rent-a-car, who had a strange thing happen on the way to the forum: customers just went rent-crazy! they rented all kinds of cars, vans, trucks, suvs, etc. that they just could never afford in a million years. well, thank god they don't have to be responsible if something happens, right? it's just a rental. (of course, everyone crashed and/or committed too many moving violations that all the rental vehicles were totaled/impounded.) but you know what? the only place open is crazy sam's. he must be crazy if he's open in these conditions. not only is he open, but he's got proverbial diamonds in the proverbial rough and he wants to sell everything to you. yes, you. your mom, too. and your grandma and your brother and your neighbor and anyone else with 5k in the bank. oh, is that too much? ok, maybe 4k because you have such a friendly face.
you may think that crazy sam isn't making a lot of money. after all, he's clinically insane for selling you an H3 with 40 miles on it for $4,999 with no money down and 0% apr financing for the life of the 5-year loan you have with him on the side - at a monthly payment of $83.32. but just remember, crazy sam was gifted this vehicle. and since it's a gift, that's $4,999 that appeared out of thin air. in fact, when demand came back, he started selling the rest of those cars for double what you got yours for. and now he's got an extra $400k that was $0 last month. that would be a 40,000,000% profit margin - if it were possible to have a return on zero dollars. finally - someone was able to beat the profit margin on soft drinks!
what's the point of crazy sam? there's a few things here: in a recession, the little guy gets screwed because he's so scared that he will lose his financial well-being. after all, it may have happened to him just under eight years ago already. the smart ones start buying up all the discounted goods at the best brokerage houses, who rake in the big bucks from commissions. does it matter to the investor that ameritrade is making commissions off them? hell, no! the investor is too preoccupied with how thankful he is of the situation to buy at such discounted rates. meanwhile, ameritrade stock just keeps on going down while they make über-bank!
i looked at the other member mentioned on the news article, too. schwab just doesn't have as large of a growth rate in the past or projected future. plus, i can't stand those creepy-looking commercials with the quasi-cartoon people. ameritrade on the other hand has 1) a deliciously out of the control growth rate thanks to a flood of people wanting to get in on the market, 2) a better savings account deal at 5.30% than e*trade's 5.05%, 3) reliable advisory services - which is important because remember!, the little guy is freaking out right about now, 4) a flash animation on their website reminiscent of the incredible machine, and 5) sam waterston was just oh-so nice to kathleen turner after finding out she was serial mom. god, i just love everything that has to do with that movie. (sam waterston does ameritrade commercials in case you didn't catch that.)
amtd is the new queen of the incumbent recession. long live the queen. why so? because we're in a recession (arguably..if not, close...if not, in a stagflation-type scenario...oh, whatever - you're not making as much money as you were six months ago unless you're shorting everything...there!). and what happens in a recession? the short answer is 'the stock market goes down'. the real answer is that stock prices go down, but some of the companies are just a-ok!
you can think of the market as crazy sam's used car lot. crazy sam is about to sell you a bmw with 2,000 miles on it for the low, low price of $5,000. now, before we raise concerns about the validity of crazy sam's original claim to the vehicle, i must mention that the car was left abandoned in the street outside his lot, with the title signed over to him lying in the front passenger seat, by a rather irrational motorist who believes that he puts himself at the risk of a crash, and possibly his own fatality, if he were to drive his car any longer. there's been a lot of this going around crazy sam's used car emporium lately. in fact, crazy sam has about 45 of these abandoned luxury cars and he just doesn't have the room in his lot for them all. what's more, he's having a hard time selling them because everyone in town just wants to get rid of their cars because they just aren't safe, plain and simple.
the best part is that you just arrived from out of town. you're visiting your friends on vacation and you need to rent a car. strangely, everywhere seems to be out of business because of places like e-rent-a-car, who had a strange thing happen on the way to the forum: customers just went rent-crazy! they rented all kinds of cars, vans, trucks, suvs, etc. that they just could never afford in a million years. well, thank god they don't have to be responsible if something happens, right? it's just a rental. (of course, everyone crashed and/or committed too many moving violations that all the rental vehicles were totaled/impounded.) but you know what? the only place open is crazy sam's. he must be crazy if he's open in these conditions. not only is he open, but he's got proverbial diamonds in the proverbial rough and he wants to sell everything to you. yes, you. your mom, too. and your grandma and your brother and your neighbor and anyone else with 5k in the bank. oh, is that too much? ok, maybe 4k because you have such a friendly face.
you may think that crazy sam isn't making a lot of money. after all, he's clinically insane for selling you an H3 with 40 miles on it for $4,999 with no money down and 0% apr financing for the life of the 5-year loan you have with him on the side - at a monthly payment of $83.32. but just remember, crazy sam was gifted this vehicle. and since it's a gift, that's $4,999 that appeared out of thin air. in fact, when demand came back, he started selling the rest of those cars for double what you got yours for. and now he's got an extra $400k that was $0 last month. that would be a 40,000,000% profit margin - if it were possible to have a return on zero dollars. finally - someone was able to beat the profit margin on soft drinks!
what's the point of crazy sam? there's a few things here: in a recession, the little guy gets screwed because he's so scared that he will lose his financial well-being. after all, it may have happened to him just under eight years ago already. the smart ones start buying up all the discounted goods at the best brokerage houses, who rake in the big bucks from commissions. does it matter to the investor that ameritrade is making commissions off them? hell, no! the investor is too preoccupied with how thankful he is of the situation to buy at such discounted rates. meanwhile, ameritrade stock just keeps on going down while they make über-bank!
i looked at the other member mentioned on the news article, too. schwab just doesn't have as large of a growth rate in the past or projected future. plus, i can't stand those creepy-looking commercials with the quasi-cartoon people. ameritrade on the other hand has 1) a deliciously out of the control growth rate thanks to a flood of people wanting to get in on the market, 2) a better savings account deal at 5.30% than e*trade's 5.05%, 3) reliable advisory services - which is important because remember!, the little guy is freaking out right about now, 4) a flash animation on their website reminiscent of the incredible machine, and 5) sam waterston was just oh-so nice to kathleen turner after finding out she was serial mom. god, i just love everything that has to do with that movie. (sam waterston does ameritrade commercials in case you didn't catch that.)
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