This Day On The Street
Continue to site
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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $121.55 -0.67%
FB $94.01 -1.26%
GOOG $626.43 -0.97%
TSLA $266.11 -0.25%
YHOO $36.69 -2.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs