Exclusive end-of-the-year Wall Street update
Frank Cotolo
November 28, 2009
WALL STREET - Cotolo Chronicles (CC) reporters say the buzz on Wall Street is that the rocky 2009 market forecasts that some companies will stay open and sell stocks and other companies will close down.
"The companies that close cannot sell stocks," said Wall Street expert Bill Boat.
The companies closing will also have to release all the people working for them.
"This," Boat said, "means higher unemployment, especially for the people who won't be able to work for the closing companies."
It is speculated that maybe the people fired from the companies that close can go to work for the companies that stay open.
"It is possible," Boat told CC reporters, "but right now I have to go somewhere and cannot give you any more quotes."
Another financial specialist, this one who has worked for a company that has stayed open for years now, said, "This is one of the bad things about companies. They don't always stay open. If their business becomes bad, they close. It wasn't always like this. In the old days some companies stayed open no matter how much money they lost."
The announcement worried some company owners that were sure there would be no more government bail-outs.
"I hope my company stays open," said one company owner.
"Me too," said another company owner. "I don't care about anyone else's company as much as I care about my own company. If my company closes, I am through."
The announcement could cause a selling frenzy.
"Maybe a lot of people will sell their stocks when they find out that some companies are closing," said a Wall Street regular.
Some experts think that if too many stocks are sold, more companies may close.
"This could get ugly," said Brett Beach, who has sold stock in companies that have stayed open for years. "It is a cycle that, like most cycles, goes around."
"I am not worried," said another man who has all of his money invested in companies that have stayed open. "When a company closes, another company opens. They open and close all the time. The trick is to stay away from the ones that close."
Wall Street officials tell CC reporters they are convinced that too many companies closing will affect the number of stocks sold in a day.
"Unless we sell stocks of companies that have closed, we could be lacking enough stocks to sell," said Casey O'Dell, a partner at O'Dell, O'Dell, O'Dell & O'Dell Traders. "But if the rules say we cannot sell stocks from companies that no longer exist, we could find there aren't enough stocks to sell. At least that is the way I see it and I am sticking to that story."
Financial experts said they would meet soon to discuss how many companies closed and what stocks were no good any more.
Frank Cotolo can be found hosting the talk and interview programme Cotolo Chronicles. You can send him an e-mail at this address: frank@148.ca.
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