Children's money is still money

The China Securities Regulatory Commission has asked 36 schools in one of the country's richest provinces to teach upper primary school students "how to manage money and trade stocks", according to the Southern Metropolis Daily newspaper. This will involve about 10,000 students in a pilot programme, beginning next month. If successful, the new curriculum will expand to the rest of the province, the paper says.

Im all for this kind of thing but I can tell this will be abused.  The smart chinese say kids should be taught how to behave before how to place market orders.  Kids are going to make their families rich and poor, without them knowing.  Crazy.

Market is going down

I know we are probably looking at about a 50% recession selloff and not a 10% correction because everyone is talking about stocks.  The media is merose on a big down day but giddy on a big up day.  That means impulse has taken over.  There is no faith.

Also, a large amount of money has been withdrawn from equity funds, an amount not seen since 2007. 

What Cameron is going through

When a firm acquires another entity, there usually is a predictable short-term effect on the stock price of both companies. In general, the acquiring company's stock will fall while the target company's stock will rise.

The reason the target company's stock usually goes up is that the acquiring company typically has to pay a premium for the acquisition: unless the acquiring company offers more per share than the current price of the target company's stock, there is little incentive for the current owners of the target to sell their shares to the takeover company.

The acquiring company's stock usually goes down for a number of reasons. First, as we mentioned above, the acquiring company must pay more than the target company currently is worth to make the deal go through. Beyond that, there are often a number of uncertainties involved with acquisitions. Here are some of the problems the takeover company could face during an acquisition:

A turbulent integration process: problems associated with integrating different workplace cultures
Lost productivity because of management power struggles
Additional debt or expenses that must be incurred to make the purchase
Accounting issues that weaken the takeover company's financial position, including restructuring charges and goodwill
We should emphasize that what we've discussed here does not touch on the long-term value of the acquiring company's stock. If an acquisition goes smoothly, it will obviously be good for the acquiring company in the long run.

For me, I cant control what happens but it would be nice if schlumberger stock is really high when my cameron stock converts over.  I think the 1 for .716 plus $14.44 is set in stone.  I would wait to sell slb when oil peaks again. 

Well said

"The price of entering the market has just gotten cheaper, and the world isn’t that different from what it was a week ago," Kisgen, now Boston College Carroll School of Management associate professor of finance, said.

Several months from now I'll say "the price of entering the market has gotten REALLY CHEAP, and the world  isn’t that different from what it was a year ago."

Everything is going down but the snowball is just getting started.

Market concerns

Three factors continue to hover over the markets:

1. Concerns that China's economy is slowing faster than its government has said.

2. Uncertainty over whether the U.S. Federal Reserve will raise its benchmark interest rate in September.

3. The effect of cheap oil, which has dropped to its lowest point in over 6 years.

Through all of this, it's worth remembering that U.S. stock indexes had hit record highs earlier this year, after logging double-digit gains in each of the last three years.

Arguably, the U.S. stock market was heating up, and weak company earnings weren't lining up with high stock prices.

The best explanation is over heating.  U cant blame china, since we are all at blame since we are all connected in the same global economy, each having our own influences.  The fed reserve and cheaper oil make an economy or market  vulnerable but they are not to blame either.  People have bought all they could buy and some need to sell to get money back, or overheated, is the real reason for this global selloff.

All eyes are on sp500

The S&P Futures are re-testing that 2,060 level, which is 20 points below the 200-day moving average and, more importantly, 35 points below the 50 dma, which means, if we finish down here, we can drag the 50 dma almost a full point lower and a few days like that can bend the line down and then we're heading into our 3rd major death cross sometime around the end of September.

Meanwhile, china is at their 3500 mark which the govnmnt said they will buy at to gaurantee a floor.  Oh lord.