The why and how America is in trouble

[w¡n9Nµ7 §£@¥€r 123]

Too much to paste, click the link and check it out for yourselves.

http://www.billcara.com/archives/2007/03/t...rica_is_in.html

[mawilson 2,133]

Gupt,

What's your current situation -- are you buying or selling?

[w¡n9Nµ7 §£@¥€r 123]

Neither. I'm staying put.

[mawilson 2,133]

Neither. I'm staying put.

Still, the housing downturn worries you?

[w¡n9Nµ7 §£@¥€r 123]

Interests me more than worries me. I have a morbid fascination for watching train wrecks.

[Caladan 19]

Don't have the financial skills to analyze the data for myself, but goddammit. Is this the baby boomers' fault? Generation Mulligan, more like.

[almaty 19]

Don't have the financial skills to analyze the data for myself, but goddammit. Is this the baby boomers' fault? Generation Mulligan, more like.

\

nope a muslim plot to wreck the economy ..per vjers

[w¡n9Nµ7 §£@¥€r 123]

Muslim baby boomers

[JohnK 0]

Sounds like a good time to go house shopping to me.

I got a residential phone put in a few months ago and I'm still fielding phone calls from bill collectors to the person who had the number before me. Now I just yell "** OFF I'LL NEVER PAY YOU!!" and hang up the phone. LOLOL

[w¡n9Nµ7 §£@¥€r 123]

LOLOLOLOLOLOLOL

That has got to be the funniest thing I've read on VJ today

[Hilarious Clinton 452]

Thanks a lot subprime lenders.

[Dean/Gra 0]

Don't have the financial skills to analyze the data for myself, but goddammit. Is this the baby boomers' fault? Generation Mulligan, more like.

Caladan you seem like a very smart man when you said you did not have enought skills to analyze the data yourself. Neither do I. However if you watch CNBC like I do all the time, everyone of these people has a different opinion on what is going to happen. The upshot is, no one knows for sure, they are simply making a guess.

I have been around for a while and have seem several recessions. I was able to predict the last 2 downturns, the one in the late 90's and this one. When the NASDAQ was over 5000 I was telling everyone to sell everything they had and put it under the mattress, no one listened, cause what the hell do I know. My only expertise is simply listening and making my own determination. In the late 90's we were hearing terms like "the new economy". Now being a somewhat ignorant ### I asked myself what happened to the old economy? When they start changing things to do what they want, always question it.

What we are hearing today is the"Subprime Market". What is subprime? Those are loans to people that don't pay their bills. Is it a surprise that they won't pay these bills either? Where is the surprise? It is quit possible that this will pull the nation into a recession much like a small bank in a shopping mall in Oklahoma City caused a massive bank failure nationwide in the early 80's. That was Penn Square Bank by the way. When it went under, the other banks started folding like a deck of cards. I think it was the 7th largest bank in the nation along with several hundred smaller banks when down the tubes. For a great read try "The Rise and Fall of Penn Square Bank". The bank was in Penn Square Mall by the way, which is on Pennsylvania Ave in OKC. A number of bankers went to jail over all the shenanigans that went on there.

In the late 1980's was the Savings & Loan default. The government, Fannie Mae, was left holding title to thousands of properties across the US. They set up the Resolution Trust Company, I think it was called. RTC was selling property at bargain basement prices for several years. Several people went to jail over that, even John McCain was implicated in it some way.

I also recall in the late 1970's when the prime interest rate was at 21%. A house loan, if you could get it was 18%. There were almost no home sales.

If you are a real estate investor this is what you have been waiting for to make a lot of money. Timing is everything, and Cash is King. I personally have not owned any stocks since the 1970s when I bought gold stocks after hearing a gloom and doom story like the one on the link. I sold the gold stock sometime later and lost half my investment, which I could ill afford being a blue collar worker at the time.

I have since come to realize that most of the people that make a lot of money in the stock market are the stock brokers. A good many people lose money in the stock market, because they don't know what they are doing. The only people that make money when you buy and when you sell are the brokers.

However if you are a real estate investor, sell all you can, can all you sell, and set on your can. At least til you perceive the "bottom", then start buying. When the financial markets dry up the banks that are left holding the properties are much easier to deal with, but only if you have cash. You don't put all your cash into the properties, just use that as leverage to get great deals from the banks. At least that is the theory.

I have been selling my properties for the last 2 years in anticipation of this downturn. I still have some property, but it is for sale.

Listen to everyone, but make up your own mind what is best for you. The fact is, you know as much as anyone else, maybe more.

Sounds like a good time to go house shopping to me.

I got a residential phone put in a few months ago and I'm still fielding phone calls from bill collectors to the person who had the number before me. Now I just yell "** OFF I'LL NEVER PAY YOU!!" and hang up the phone. LOLOL

HAHAHAHAHAHAHAHA, thanks for the belly laugh

[Hilarious Clinton 452]

Dean,

You've haven't owned stocks since the 70's? If you're scared say you're scared.

Stocks are a good investment for the long haul.