The stock market helps companies offer stock to the public, but it wouldn’t go far if there wasn’t a secondary market where someone who is done with a stock could sell it to some other investor/speculator.

One of the big problems we’ve had recently is the secondary market for debt like CDOs hasn’t worked too well. As that picks back up, as credit flows better, the economy could take off again.

We haven’t had a similar problem with the stock market. Stock values dropped, but the market has continued to function quite well.

Ordinarily when you say a “given” time frame, you are speaking in the abstract. So, it’s like solving for X.

A certain time frame, usually means you know what the time frame is.

But you may be referring to something else?

They assign “ratings” like AAA, AA, A, all the way down to junk bonds.

Mortgage backed securities are the most famous kind. But you can create one from any kind of debt that makes periodic payments. For example, have you heard those radio ads that ask if you are receiving monthly payments from structured settlement? And they offer to buy it from you for a lump sum of cash? A group of monthly payment obligations of that kind can be lumped together to create a debt backed security.

This didn’t happen on Obama’s watch, but I sure am disappointed his DOJ is letting this !@#$%^& and GS off without criminal prosecution.

“YTD NY Fed Chairman Has Made $2.7 Million From Goldman Sachs Stock Purchased In December and January”

“New York Fed Chairman’s Ties to Goldman Raise Questions”

The Federal Reserve Bank of New York shaped Washington’s response to the financial crisis late last year, which buoyed Goldman Sachs Group Inc. and other Wall Street firms. Goldman received speedy approval to become a bank holding company in September and a $10 billion capital injection soon after.

During that time, the New York Fed’s chairman, Stephen Friedman, sat on Goldman’s board and had a large holding in Goldman stock, which because of Goldman’s new status as a bank holding company was a violation of Federal Reserve policy.

[…]

Meanwhile, Goldman’s stock has rallied strongly. Investors liked the bank’s announcement in early February that it hoped to repay its $10 billion federal capital injection, freeing it from pay and other restrictions. Then, after a surprisingly strong first-quarter earnings report in mid-April, Goldman raised about $5 billion in a public offering.

Mr. Friedman has benefited from those events. On Friday, Goldman stock closed late in New York Stock Exchange trading at $127.08 a share. Mr. Friedman’s December and January stock purchases now are showing accrued gains of $2.7 million.

Raven, I’m thrilled Obama beat McCain and I know he only won 53% of the popular vote. His Cairo speech was magnificent. I don’t have a problem with the tough love he’s given Detroit so far, I just wish he’d give it to the banks. At last count, he’s given them FOURTEEN TRILLION in loans and guarantees. The state’s are busted and we need Marshall Plan/Manhattan Project kind of investment in energy independence. I hope all my concerns turn out to be false and I really hope in two years you can beat us all about the head and shoulders yelling, “I told you so.”

Cynthia great post, as per usual. I hope you link to this one in all future posts. Being fluent with the terms is key and I always need refreshers.