Look out Belooww

The party is over folks!

Sub-prime lenders are going bankrupt like teenagers with credit cards.

The Dow is down over 300 points today!!
Biggest decline since 911. Greenspan warns of a recession.

If your just getting started in this business YOU MUST buy property at HUGE discounts in this market. This thing is just getting started.

Check out some of the info on itulip.com. These guy’s called the dot com bust when everyone thought they were nuts. Their research into real estate values over a period of 80 years will scare the life out of you. They have charts which have prices for housing going back 80 years. In the last 6 years the run up we’ve had makes the end of WWII and every other run up since look like ant hills.

I am a very optimistic person but I believe we could be on the verge of a economic collaspe here. I hope not. But, be very careful.

If this is the beginning of some type of economic event, there will be oppurtunity here. But, you do not want to get in a postion where you are using your home equity to invest in this market.

Just a note of caution.

<<The Dow is down over 300 points today!!
Biggest decline since 911. Greenspan warns of a recession.

Last I saw, it was 520 points…


520 was just off the lows, but the dow dropped about 200 points in 2 minutes to -546, all due to program trading. Greenspan’s uttering of the “R” word was likely because he had an advance copy of this mornings dismal Durable goods #. Having said that, one days decline does NOT hint at a recession. Watch tomorrow, as well as what overnight markets in asia do. Good chance that there will be a snapback. If not, watch for a few days of declines… this very well could be just a repricing of the market, which is very healthy at times.

Greenspan is retired, no longer the Chairman of the Fed.

That doesn’t seem to matter, people are still listening to him: http://news.google.com/news?q=greenspan&hl=en&client=opera&rls=en&hs=Q19&sa=X&oi=news&ct=title

Correct. But is still very tied in to information. Bernanke does not have nearly the respect that Greenspan did and is interesting to note that clout that a retired Fed Chairman has over the markets.

BTW, the -546 on the Dow was a tabulation error.

the sky is falling chicken little!!! :shocked

Yeah right

The asian markets were the reason for the fall, they are trying to appease the US

Yea, OK It doesn’t have anything to do with the Chinese markets being fueled by THEIR citizens using equity loans to invest in the stock market. China’s central bank announced restrictions on that practice and THAT lead to the sell off. China IS NOT going to let their economy crumble to appease the U.S. You’ve got to be kidding.

It’s a good day to be in the rental property business. No matter what happens with the stock market, my low income tenants will still be receiving their government checks on Thursday and my Section 8 payments will still be in the PO Box.

My rents didn’t go down one bit just because some communist in China lost his butt. JSStinson - pay attention in training. One of these days were gonna be fighting those Chicoms!


Yeah we will be fighting them one day


Here’s to diversification.

With the massive trade imbalance, the amount of money the Chinese invest in the bond markets and the gutting of the manufacturing sector in this country and the outsourcing of the same…The Chinese don’t have to appease us, I fear it’s the other way around…


Scott Miller

Couldn’t agree more

Who cares about what happen, we are in realestate everyone wants to own a house not everyone wants stocks and 1 out of 10 people wont look to china for anything but food. i think going forward there are going to be some great investments in realestate in the year 2010 it is the biggest year for the babybroomer and they have money, there looking for fun in the sun, and a nice cool breeze by the lake so i think realstate will be fine, don’t be a follower be a leader when the stock market went down no one wented to buy so what did they do they bt realstate and gold which are no getting crush, so what i am saying is do the opposite of what your friend are doing and you will make money

Hey ez I disagree investors in china were afraid of interest rates rising or some money being taken off the books for loans, harder requirements because the US has been putting pressure on china to slow their rapidly growing economy. Dont fool yourself china needs us as much as we need them.


If baby boomers see a meaningful decline in their investments, ie stocks, they will have less disposable income and not want to buy real estate with such fervor, or even at all. You may be in real estate, but your buyers are not likely real estate investors. If you look at some recent economic numbers, notably Durable Goods orders and new homes sales, they are dismal. They do not bode well for consumer spending. Having said that, I’m cautiously optimistic about housing prices in my local market, but think there is a good potential for downside pain in many regions. In the long run, any downside is probably a buying opportunity, but I think any buyers need to be able to tolerate further downside pain.

That’s cool with me…

I lived, worked and played in various parts of SE Asia for the better part of 80’s and all of the 90’s, so my opinion is based upon the “up close and personal” vantage.

Why wouldn’t the Chinese gov’t (a large holder of U.S. bonds) want higher interest rates (when bond returns would increase accordingly)?

Why do you think the Chinese government no longer ties their currency (yuan) to the dollar? Something was lost here, while something else was gained…

With the both the massive trade and debt imbalance that exists between our two countries, it reads more like co-dependence rather then interdependence…

What does the deficit and the devaluing of the US dollar have to do with real estate? If the US dollar sinks too low, foreign investors get nervous and the FED raises interest rates to attract foreign debt investment.


Scott Miller


Scott Miller