portfilio

So i was thinking of what my project will produce. And i came up with the idea of investing real money in some specific stocks and having my own investment portfolio.

I as for the stocks i wanted them to vary. I am going to get some shares of a company that is not directly effected by the housing market and the government bail out. I am also going to something such as a lending company who is directly effected. So right now i am doing research on what to invest in so i don't end up just wasting money.

VIX

The VIX is the volatile index. It shows how dangerous a market is. I am going to use this to determine how the Bailout has effected the market. In addition to quotes and graphs in general.

October 8th, 2008

Foundations questions are what i am working on.
Useless resources have been removed from the list.
Can't think what questions. But i
know the basic ideas.

DOW falling

Yesterday the Dow Jones closed under 9500.

To put that in perspective, only three months age it closed above 14000.

Real Project

Today i began to record the Dow Jones(DJIA), BerkShire Hathaway(BRKA and BRKB), American International Group (AIG), Freddie Mac(FRE), Fannie Mae(FNA), Lehman Brothers(LBC), and Bank of America(BAC). I put daily opens and closes on an Excel spreadsheet. The dates start at August 1st and will continue for a while. I did this so i can later import this data into CoMotion and use it in visualisations.

I chose these institutions because they are the ones most commonly effected and all but the Bank of America has has some kind of recent government aid and has drastically dropped. The Bank of America has bought out many other smaller failing banks so that is why that one is in there. Furthermore they all are directly effected by Federal Rate cuts, other than AIG.

Well...

The previous plan that i spoke about earlier is irrelevant because the House voted for the original proposal.

But today I came up with my essential question:

"How do government bail-outs and Federal rate cuts effect the stock market?"

Different plan

Today in The New York Times i read an article that proposes a different type of a bail out. As opposed to giving the money to lenders, the government will pay $250 of every home owner's mortgage every month. I will post more as soon as I learn more.

Bail out vote

Tonight the bail out proposal is going up for vote to the house again, it has already failed once.

It has been voted for by a majority in the senate.

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