a99kitten's Musings

“You’re all pretty much fu****. You don’t know it yet. But, you are the NINJA generation. No Income, No Job, No Assets. You got a lot to live for too. Someone reminded me the other evening that I once said greed is good. Now it seems its legal. But folks, its greed that makes my bartender buy three houses he can’t afford with no money down. And its greed that makes your parents refinance their two hundred thousand dollar house for two fifty. Then they take that extra fifty and go down to the mall. They buy a plasma TV, cell phones, computers, a SUV, hey why not a second home while we are it, cause gee whiz we all know the prices of houses in America always go up, right? And its greed that makes the government of this country cut interest rates down to one percent after 9/11 so we can all go shopping again. And they got all these fancy names for trillions of dollars of credits, CMOs, CDOs, SIVs, ABS . You know I honestly think that there’s maybe only seventy five people in the world who know what they are. But I’ll tell you what they are – WMDs, weapons of mass destruction! That’s what they are.

Its clear as a bell to those who pay attention, the mother of all evil is speculation, leveraged debt. The bottom line is borrowing to the hilt. And I hate to tell you this, it’s a bankrupt business model. It won’t work. Its systemic, malignant, and its global, like cancer. It’s a disease and we got to fight back. How are we going to do that? How are we going to leverage that disease back in our favor? Well I’ll tell you. Three words, “Buy my book!” Prices and profits work.”

Another great speech given by Gordon Gekko, in the new movie – Wall Street: Money Never Sleeps.

I liked the movie. I didn’t love it like I love the first one but I loved every second GG was on the screen. And I think Josh Brolin did a great job. And I didn’t even hate Shia even though I could have done with a little less him and a little more Michael Douglas.

I was worried Oliver Stone would try to make this some huge morality tale since Hollywood loves to blame Wall Street, the big, bad corporate monsters and rich people (unless you are rich from making movies or music that is) for all that is bad and evil in the world. And Hollywood is full of morality…Plus Stone seems so shocked, in every recent interview anyway, that he unleashed GG on the world (really Oliver?) when he meant to show him as a villain (more people love Darth Vader than Luke so he should have known that.)

But he didn’t – not too much anyway. A lot of green energy plugging. I guess this was the only way to make the new young buck trader “likable” to the masses. “See Wall Street isn’t so bad when they want to bring cold fusion into the world! But shale oil – those guys are bastards.” Makes Shia’s character’s greed and drive acceptable. Kinda like when Al Gore pumps alternative energy…the areas/companies he has stock in that is…

The main plot centered around a Bear Stearns/Lehman Brothers-like take down followed up by the mass banking and financial markets free-fall and hysteria that came after. If you have read anything about those firms, this plot will not seem far-fetched at to you. At all.

Stone threw in some quite typical macho, alpha-male scenes but guess what – those guys generally ARE like that. So again, quite believable. Some of the special effects which I can only assume were included to help people figure stuff out (give them pictures = easier!) were needless, in my opinion. Felt they were more distracting than helpful. But I guess every single movie ever made now has to have some kind of digital effect.

Some fun cameos by financial and news people. And a few from the first movie which were funny. As well as a song thrown in as a throw-back! But alas, no Frank.

One very good thing explained was GG’s jail sentence and the time line from the first movie to this movie. I have complained forever that there is NO way he would be in jail all this time for insider trading – even with the WORST lawyer which you know he didn’t have. So thank you Oliver for making that more clear. I find it highly offensive and disgusting that anyone convicted of a white-collar crime would receive more actual jail time than a person who commits a violent crime – but people need their bogeymen and their heads on pikes.

Martha Stewart received 5 months jail time and 2 years probation (29 months total of punishment) for what was basically insider trading (the actual charges were different I think but that’s what she did.) This was a pretty small trade in her own account where she had insider knowledge due to the fact she was friends with the CEO. The amount of people that do what she did every day without getting sent to jail would probably piss some people off…the ones who didn’t get the insider info and act on it that is. I am not saying it wasn’t wrong and she shouldn’t be punished somehow. But jail time?

Michael Vick got 21 months of jail and 2 months home confinement ( 23 months total punishment) for his hands-on part in a dog-fighting ring. I recognize that I have a very strong opinion on this that not every one shares, but really? 23 months in total for showing us how cruel and inhuman you actually are? And then back to his high-flying football career being a hero to kids. Puke.

Bernie Madoff got 150 years for his multiple financial crimes. Horrible – yes. Deserves punishment – of course. But 150 years? How many murderers, rapists and pedophiles get off with 5 or 10 years – if that? But again – a head was needed, his rolled. End of story.

I am of the opinion that white-collar criminals should be made to do more community service as sentences. Real service – not give a lecture to at-risk kids. And no – not live in their penthouses while they do it. But how much are these guys fined for their crimes and hand over to the government? Use some of that to get them to work and keep them in a different facility (not tax-payer funded.) They are incredibly smart guys, make them use it for “good”.

But thrown in with drug dealers, gang members, rapists? No – sorry (contrary to popular belief they do not all go Camp Fed.) And those same violent criminals should be in jail longer than ANY white-collar criminal. My personal opinion only. But it’s my blog so my opinion rules :)

Anyway, went a little off-topic….back to the movie! If you liked the first Wall Street at all, then you will probably like this one. And there are so few movies pumped out nowadays that are worth the price of admission and hassle of going to the movies (rather than wait for DVD) to me.

I did feel the ending was a cop out. I wonder if Stone didn’t actually know where to go with it to keep morality in play? But I think he knew what people wanted and knew it was going to be hard to present it. So he went typical Hollywood. I won’t spoil what happens because I did find myself wondering most of the way through. It’s the last bit of the movie so it’s ok I suppose.

All in all, this one is not as fun and crazy as the first one but hey – this isn’t the 80s anymore.

This is interesting. I used to play the Hollywood Stock Exchange game years ago when it first started. Very fun since I love movies and love the stock market. But I got bored after awhile since no real money was involved :)

But now…futures contracts on movies. Quite interesting. Not sure how the SEC will like  a new form of speculation in this anti-Wall Street climate.  But who knows….And since I think Hollywood/the film industry is as dirty a business as they come, not sure how they can act quite so moralistic about “legalized gambling”.

http://abcnews.go.com/Technology/wireStory?id=10260557

You know…if you read this speech…if you truly listen to what he is saying…he is right. Look past the trendy “hate Wall Street” rhetoric being bandied about by our current President and media. Look at what is being said here and think about what is *truly* being said….

Gekko: Well, I appreciate the opportunity you’re giving me, Mr. Cromwell, as the single largest shareholder in Teldar Paper, to speak.

Well, ladies and gentlemen, we’re not here to indulge in fantasy, but in political and economic reality. America, America has become a second-rate power. Its trade deficit and its fiscal deficit are at nightmare proportions. Now, in the days of the free market, when our country was a top industrial power, there was accountability to the stockholder. The Carnegies, the Mellons, the men that built this great industrial empire, made sure of it because it was their money at stake. Today, management has no stake in the company!

All together, these men sitting up here [Teldar management] own less than 3 percent of the company. And where does Mr. Cromwell put his million-dollar salary? Not in Teldar stock; he owns less than 1 percent.

You own the company. That’s right — you, the stockholder.

And you are all being royally screwed over by these, these bureaucrats, with their steak lunches, their hunting and fishing trips, their corporate jets and golden parachutes.

Cromwell: This is an outrage! You’re out of line, Gekko!

Gekko: Teldar Paper, Mr. Cromwell, Teldar Paper has 33 different vice presidents, each earning over 200 thousand dollars a year. Now, I have spent the last two months analyzing what all these guys do, and I still can’t figure it out. One thing I do know is that our paper company lost 110 million dollars last year, and I’ll bet that half of that was spent in all the paperwork going back and forth between all these vice presidents.

The new law of evolution in corporate America seems to be survival of the unfittest. Well, in my book you either do it right or you get eliminated. In the last seven deals that I’ve been involved with, there were 2.5 million stockholders who have made a pretax profit of 12 billion dollars. (applause) Thank you.

I am not a destroyer of companies. I am a liberator of them!

The point is, ladies and gentleman, that greed — for lack of a better word — is good. Greed is right. Greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms — greed for life, for money, for love, knowledge — has marked the upward surge of mankind. And greed — you mark my words — will not only save Teldar Paper, but that other malfunctioning corporation called the USA.

Thank you very much.”

This movie was done in 1985. Still holds true today. One could argue that you can apply this to all of the life-long politicians that have never held a real job, a job where they have been responsible for creating anything, for making sure payroll is met, making sure that shareholders receive a return on their investment. They collect their giant salaries (look it up) and benefits that our paid by us…the taxpayers. Do you really think they are any better than the purported “criminals” of Wall Street or the banks? Really? If you do, than you are truly naive…

Are there criminals on Wall Street? Of course. Are there criminals in every single line of work? Yes. Are there criminals serving as your Congressman, Senator? Yes. If you don’t think so…you are truly naive…

This country was created, built on and made into the greatest country on earth because of the entrepreneurial drive to be successful. And our current government wants to destroy that. Put everyone on a level playing field. Everyone doesn’t belong on a level playing field. Face facts – there are smarter people, harder-working people…not everyone “deserves” the same thing. Period.

One of my most favorite movies ever…

…I mean after all, Vader did redeem himself :)

This makes me smile so much!

This morning I made a few trades/investment moves. Not too big of a deal but all of them were spur of the moment things which really brought back memories of how much FUN being in the trading room was. Making trades on gut feelings and intuition, split decisions. Man, I miss that. It’s *such* a high – as much as I know of that feeling anyway (never did any drugs – but finding the perfect pair of shoes on sale is just like it too!)

I used to work at a hedge fund. I learned so much there. Had fun shorting, trading commodities futures, options, etc. Very, very fun. I would love to still be in that business. Working there taught me a lot. Not every day was fun and games mind you. The day to day stress was a lot.

But I can’t even watch Wall Street without still feeling that rush. I remember hearing that some of our clients were interviewed when they were researching the Gekko character. I loved that! Of course there are ethical concerns in that business but you CAN work on Wall Street without being a crook. My old boss was very ethical. Could he have made even more by not being so – I’m sure. But he had no interest in that.

During the beginning of the internet stock craze, I had some FUN trading room days. I remember calling a friend of mine and asking if she wanted in on a buy right before the market close. She was hesitant and I pulled out the Bud Fox line…”What do you want to do? Decide.” and then silence…we had such a good time. We did the trade. And made money. I paid off some credit cards and paid for my wedding and reception with that account over a few months of the market on internet stock Kool Aid. Not so bad :)

Now, I’m not crazy. I have a 401k now too. That is my safe, conservative investment account. But I also still have a stock account that I like to trade a bit. I still keep it on the conservative side – no margin. Have seen waaaay too much pain caused by that. I don’t treat it like I used to treat my stock account – 1 big churning machine. I buy stocks that I think will grow, good investments, etc. But I do make a few riskier trades than in my 401k!

I have thought of going back into that. Even now. But then my safe and conservative side wakes up and says “No dummy!” I definitely have 2 sides. I realized it recently and my friends have mentioned it. I think they can both reside peacefully. Although I sometimes think this is why I don’t sleep so much and can almost never sit still. But this way I get a lot done! Like making a few trades before the doggie walks and my quiet, non-trading room job :)