This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Stock Market Game Week in Review

The Stock Market Game is a curriculum-based teaching tool that allows students to invest a hypothetical $100,000 online stock portfolio to learn about long-term saving and investing.

It was a historic week as President Obama took office and hit the ground running on a number of fronts, but stocks continue to languish in the subprime doldrums. Wall Street is waiting for clear direction on the policies regarding the second round of TARP money and the shape of regulations it knows are coming its way.

New York Fed President Tim Geithner tiptoed past his tax problem this week and will likely be confirmed by the Senate on Monday, Jan. 26. In a letter to Senator Carl Levin, Geithner stated that there needs to be more regulation of derivatives and hedge funds and that the regulatory system needs sweeping changes. In similar news, FINRA CEO, and distinguished InvestWrite judge, Mary Schapiro was confirmed as Chair of the SEC Thursday and has promised to "take the handcuffs off" the SEC's enforcement division. The Dow has given up all of its early 2009 gains and has been bumping along the 8,000 level all week with no clear trend in site, except the ever present trend of banks struggling on government life-support. (Don't miss " Stocks End a Rollercoaster Week Mixed" and " Coming Week: More Data, More Trouble")

Speaking of banks, there was much talk this week of creating a government-run "bad bank" to buy up the banks' toxic assets and shore up their balance sheets. This is essentially how the government cleaned up the savings and loan crisis after the last real estate bubble burst in the late 1980s.

In 1989, Congress passed legislation that led to the creation of the government-owned Resolution Trust Corporation (RTC), which purchased impaired mortgage and real estate assets and sold them to the private sector. This was only a scant $400 billion problem, but the RTC managed to stabilize the banking system and the government ended up losing only $124 billion in the process. The government accomplished this with some complex transactions you can read about, and some economists are arguing for this approach now. Others (there are always others) argue that a bad bank approach won't work because the subprime mortgage instruments that are giving the global financial systems ulcers (and possibly worse) are too large and too complicated to price accurately. We'll keep an eye on the situation for you during the course of the semester.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs