Watch…
Your all going to learn a lot…very quickly.
I am at a lose of words right now. came back from home depot and seen the news.
this government needs to all be replaced. how can they not understand the ECONOMY its their job !!!
the only reason i can think of is they’re playing this out for their big money backers. they’ll come in soon and buy everything so cheap its sickening.
I really don’t understand what they are thinking !!! We’ll invade another country for absolutely no reason but passing a bill that is crucial to our economy to survive -no thanks we dont want any part of that- too risky. IDIOTS !!!
Your all going to learn a lot........very quickly
I am ready to learn! However, I am also ready to pay a price if that will allow these big Wall Street firms that bought all this bad paper to go out of business. These firms acted recklessly and should pay the price - THAT IS CAPITALISM! Huge risks can lead to huge rewards OR huge losses. These firms gambled and they lost. I don’t believe for a minute that banks will stop lending. They have tightened their standards and are requiring good credit for borrowers (what they should have been doing all the long). I just had a bank call me the other day to see if I wanted to borrow any more money, so I KNOW banks are still lending. BTW, I told them “no thanks, I’m not borrowing any money during a DEPRESSION”!
Hopefully, once the depression hits, the government will come to its senses. Maybe, we can not only get rid of these reckless Wall Street Firms, but maybe the Fed also! In addition, it’s crystal clear that we can’t afford all the entitlements that we’re promising and I’d like to take a meat cleaver to those also!
Too lazy to work? No more welfare! No more foodstamps! No more medicaid. No more Section 8! NADA! I’m sick of paying for the deadbeats - the ones on Wall Street and the ones on Main Street!!!
Mike
You should have asked that banker HOW MUCH your NEW interest rates were going to be???
Oh they might be lending…but it ain’t at anywhere NEAR a “normal” interest rate.
CNBC this morning had a very well respected money manager on (she actually called this housing bust 4 years ago) she related a story about a client of hers with a 7 figure net worth and a 800 FICO score. He wanted to buy a home in Darian Conn. and needed a $450,000 mortgage (a jumbo) he got approved NOT PROBLEM, Happy to lend him the money…
AT 11% for 30 years.
Becareful what you wish for…
Becareful what you wish for…
I’ve been waiting a long time for interest rates to go up…Check municipal money market fund rates…They are through the roof… I’m in a basket of muni money market funds…Average tax free is yield is over %4.75…Thats over %8 taxed… Who needs the stock markets anymore…
Jumbo loan rates have been ridiculous for a while now, at least the last 9 months or so.
The only thing that kept that bill from being passed are the coming elections. Most americans don’t agree with the premise of bailing out banks and the politicians are worried about losing their jobs if they vote for it.
I’m morbidly curious to see how low the markets can go, and what happens if they don’t get some form of revised bill passed. Not saying I want to live through what happens, but just curious to watch everything unfold.
Mike
I would love the free market to actually be the free market but this bill they are trying to pass is not a bailout for wallstreet. Did these banks deserve to go bankrupt - YES hell YES , but these banks have done such harm to the whole system that its FROZEN !!! banks aren’t lending, people are pulling money out of these banks. theres a huge money problem here.
this money not being lent is for small business’s to survive, bigger business’s to pay payroll. imagine adding buisness’s that are still making money losing the ability to pay their workers.
if we do nothing, their is no doubt about this we are in the Worst Depression ever seen.
if we do nothing, their is no doubt about this we are in the Worst Depression ever seen.
Maybe that will be an opportunity to start the country over with CAPITALISM AND FREE MARKETS - instead of handouts and socialism!!! If so, it will be worth it!!!
Mike
I agree that it will be worth it. But I’m afraid it will never happen, the same way we will never see morality as it was when our country was founded.
Aw, too bad I missed it…
just because we have a depression that doesnt mean we change over to free markets and capitalism. We could change over after this election but it has to be a gradual change.plus ron paul is the only person who wanted this change and hes not even running probably. I sure as hell dont want a great depression do you ???
If theres 1 thing I can tell you about what just happened that will appeal to logic its below. this rejection was an awful thing to happen for this country.
this plan may cost 700 billion of which we will get money back and may even make a profit from it. the stock market today lost [size=10pt]1.1 Trillion dollars[/size]. thats 1.1 Trillion dollars of people’s retirement accounts, people’s investment money, thats 1.1 trillion dollars US citizens Lost today ALONE. what do you think is gonna happen everday until this bill gets passed ??
I’d like the people who voted nay to explain how their vote is good for this country ???
this plan may cost 700 billion of which we will get money back and may even make a profit from it. the stock market today lost 1.1 Trillion dollars. thats 1.1 Trillion dollars of people's retirement accounts, people's investment money, thats 1.1 trillion dollars US citizens Lost today ALONE. what do you think is gonna happen everday until this bill gets passed ??
The stock market didn’t lose 1.1 Trillion dollars today, that 1.1 Trillion was never really there. The stock market has been irrationally high for a LONG TIME (considering that our country is BROKE). So, I think it would be more accurate to say that the stock market is coming back to reality - as are house prices (slowly). The ridiculous runup in real estate prices and the stock market should never have occurred and now they’re coming back to planet earth. REFRESHING if you ask me!
Mike
mike
that 1.1 trillion dollars isnt real ??? are you kidding me ?? if you think 1.1 trillion wasnt lost today then i wouldnt collect rents this month either because that green paper is the same stuff that buys stocks, plus its dirty.
its funny mike you hate entitlements but have alot of section 8 tenants. What if the government tomorrow passed a bill taking all section 8 away ?? what would that do to your real estate investments ???
if the depression kicked in, im sure your business would be in a world of hurt if the free market didnt have section 8 vouchers to pay you rent.
We dont want a great Depression. I understand wanting a total change in policy but not by way of depression.
its funny mike you hate entitlements but have alot of section 8 tenants. What if the government tomorrow passed a bill taking all section 8 away ?? what would that do to your real estate investments ???
I wish they would!!! The end of Section 8 wouldn’t affect my business at all, especially if it was phased out. As a conservative and capitalist, I fully believe that if ALL the handouts were taken away, people would actually choose to WORK (I know that’s a 4-letter word) instead of being homeless and starving. Having a home is NOT a right. Having healthcare is NOT a right. Having food is NOT a right. It’s time to end our entitlement society and return to the can-do spirit on which this country was built. Wall Street is not entitled to my money and neither are the deadbeats who are too lazy to work!
Mike
That $1.1 TRILLION is as real as it gets!!!
It amazes me to hear smart people say things like “just let them fail” This is no different than saying we should just bomb all the oil producing countries in the middle east and TAKE the oil. These statements are incredibly short sighted.
Mike…here’s what your missing…our entire COUNTRY runs on CREDIT. That means YOU too. I don’t care if every one of your properties has been paid off for 20 years (and I know that’s not the case) NON-functioning credit markets will bite even you in the @ss. They will effect EVERY ONE of your tenants, they’ll effect EVERY SINGLE City and Town your properties are located in. That means significantley higher taxes FOR YOU are just around the corner. Those “Make believe” loses you mentioned are KILLING insurance companies. As I’m sure you know, when an insurance company takes a hit…YOU pay, not them.
Every single one of your tenants is about to come face to face with how much Wall St. effects their lives. Job loses because of these frozen credit markets will SKY ROCKET…just watch.
The other point that I have been warning about here is FEAR. Take a look at the number of BIG CASH withdrawals from our banking system over the last 2 weeks. IT’S MIND BLOWING!!! All it will take is for just ONE bank to fail and people NOT be able to access their cash and IT’S OVER. This is the EXACT scenerio Paulson, Bufffet and Bernanke are worried about.
I guarantee if you get your wish and we have a catastrophic economic event YOU WILL NOT BE in good financial shape when the dust settles.
Unless you’ve been moving HUGE chunks of your money into Swiss banks and GOLD you are NOT prepared for what could happen here.
Think I’m joking??? BILLIONS of dollars have been moved over the last month into Foreign banks accounts and even MORE has flowed into FOREIGN HELD GOLD. This metal is being stored OUTSIDE the USA. This is OLD MONEY being moved…These events ALWAYS follow the same path. The little guy is storing FOOD while the OLD MONEY is MOVING their wealth to other parts of the world were it will be PRESERVED!!! When the sh*t hits the fan…THAT’S when the little guys try and get out, but it’s too late. They end up waiting in a line of 500 hundred other poor bastards who THOUGHT they were in good shape because they never acumulated the “BAD DEBTS” others did.
At that point it won’t matter what you did over the last 10 years. What WILL matter is what you do over the next 10 DAYS!!!
Come on guys, let’s try and be constructive with these posts.
Along with saying all these bag things, let’s talk about how we can profit from these situations.
FDJake is right, Shit’s hitting the fan and it’s time to act. I’ve recently been looking into buying gold myself, I don’t have the funds of which to do so, but the money I will make is being planned on going into Gold/ more Real estate.
Fd and Property Manager, Now that you guys have gotten your opinions of Doom off your chest, let’s talk about how young people can get started today to help their economy for the future. How they can Profit from Todays circumstances for the short term and how they can invest wisely for the future.
Basically by helping people today, you’ll also be helping to fix the future, complaining about it won’t help, but offering friendly advice and pointers and guidance WILL get us out of the hole.
=] <—smily face, thanks for listening guys.
Friendly advice???
Cripes…What the hell have I been doing here for the last 3 years???
Read my posts, there’s enough adivce in them to last you a lifetime.
In times such as these…it ain’t about MAKING MONEY, it’s about PRESERVING what you already have.
RookieNYC is as smart as they come…His own account is DOWN 2% this year and he’s as happy as hell. That’s called wealth preservation my friend, and in this MESS, that’s the game you play.
At that point it won't matter what you did over the last 10 years. What WILL matter is what you do over the next 10 DAYS!!!!
I know exactly what I will be doing the next 10 days. Tomorrow morning, I’m going to write a letter to all the tenants that explains what a desperate situation the country is in and warning them about the extremely high heating costs they will experience this winter. I will also remind them to PAY THE RENT FIRST, as we WILL NOT accept any excuses for not paying the rent on time.
Then, between the first and fourth, I’ll be collecting rents as usual. If anyone fails to pay, on the fifth, I’ll be posting 3-day notices. Just after that, I will file evictions in court for anyone who hasn’t paid. And I may buy a little extra food to add to my collection. A few cans of Raviolli may have disappeared (oops, I may have eaten a little of the emergency food).
My money is mostly tied up in my rental property business. If the rental property business goes south (due to government regulation, etc), then I’ll have a problem. Fortunately, the rental business has never been better. As long as the government is providing handouts to deadbeats, I’ll have plenty of business. I may be forced to evict a few people, but most of my tenants don’t work. Some are retired; some are on SSDI; many receive government handouts of one kind or another; and relatively few (in my nicer SFHs) actually work.
Even though the current crisis could affect me, I’m still 100% in favor of allowing the market to work. If allowed to function, the market will punish those that acted recklessly and set an example for the future. The free market will also provide entrepreneurs to fill the space left by the Fatcats that screwed up. We need some pain to wake up the public and bring them back to reality! Fasten your seatbelts - it’s going to be a bumpy ride!!!
Any bets on the stock market tomorrow? I’m betting it will be up 420 points (it should drop like a rock, but I bet it won’t).
Mike
That $1.1 TRILLION is as real as it gets!!!!
I completely disagree. That $1.1 Trillion was nothing more than illusion. If I bought a house in 1999 for $100,000; the house was appraised for $150,000 in 2005 at the height of the bubble; and it is worth $100,000 today, did I lose $50,000. NO! Just because something was overpriced at some point in time does not mean that you have lost money because the price is lower today. In fact, you neither make or lose money until you sell (or buy if you are short).
My point is that the DOW is still overpriced by at least 2,500 points. So, you can SELL NOW so that you don’t “LOSE” any more money, or you can hold it for the next 25 years until you can sell at a profit - maybe.
Mike
haha, no offense intended friend. I meant in this specific thread. I don’t really search through the forums looking for your posts specifically, however I have no doubt your advice is great.
You mentioned Wealth preservation, that’s all well and good…if you have wealth. Your posts are very informative to 40 years olds who spent the past 20 years building up a portfolio and now need to keep it and hang tight. However what about Young (20-30) peoples who are just starting to build their portfolios? I realize that’s probably not your niche, but place yourself in the shoes of a young person, and what would you do?