Friday, April 04, 2008

Wall Street, "Dead Carcasses," and Vultures: Why isn't Red Envelope Treated The Same as Bear Sterns?

I found this quote for today proving once again that investing on Wall Street is just legitimized gambling:
There are a lot of dead carcasses on the road, and the vultures are out sniffing. This is the cycle of Wall Street. When bubbles crash, you get the value guys who come in and say, ‘This thing is cheap.’ -ANDY KESSLER, a former hedge fund manager.
Everyone knows that investing in stocks and other derivatives, it's the fund managers that always win - like the house in Vegas. They collect your transaction fees whether you make money or not.

Here's a good Fresh Air program to update you on how people are making bets that we will be covering for a great long while (not the least of which is the bail out of Bear Sterns).

My advice to you: If you are playing the roulette wheel that is Wall Street, don't place bets you cannot afford to lose.

Take a look at the Red Envelope story, unfolding only today. Do they get the same bail out as Bear Sterns? Doubtful. Why is that?

2 comments:

Anonymous said...


Buy now?

redenvelope.com is still up, 5Apr08, 13:28UTC. They use Flash.

See, Why your Flash website sucks.

Mary Ellen said...

I feel so bad for those who are just starting out, the college kids that are just graduating. The job market sucks, the economy is in the toilet and getting and many are losing the homes they just purchased a few years ago. The idea of investing or saving is out of the question. What a mess.

I've always said, though, that behind every lousy, crooked mortgage dealer there is an equally lousy realtor who sold out their clients to banks who gave them the sub-prime mortgages. They only cared about their own commission and didn't care what happened to their clients later. They talked them into buy homes with no money down and huge balloon mortgages and never gave it another thought after they collected their commission checks. They preyed on young adults who should have known better but were dazzled by the big new homes and living high without having to work for it. It was like selling crack to a teen.