irondoor91

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  • Profiting from the $700 Billion Bailout
    Re: logicalthought. You are correct and that was what I observed when reading through the piece. I haven't thought through all the ramifications of the bailout yet (who can know the future?), but at some point the government is going to own a lot of homes. Until the average price of those homes (now around $215,000) declines to 3x the median family income ($50,000) there is not going to be stabilization. That would be with stabilized employment, which isn't happening. In addition, we know that the free flow of mortgage money is shut down now and if banks are going to avoid this disaster in the future, they have to demand more downpayment, higher FICO scores, higher income to debt ratios, etc from borrowers. It seems to me that all those good people are probably already in homes. Why would they want another one? Do you really believe that there are millions of folks just sitting around in apartments with $40,000 in the bank, no credit card or auto debt and good secure jobs who are patiently waiting for home prices to come down? I don't know of any, but maybe somewhere in Iowa. Not in California, Nevada, and Florida where the problems are. People are leaving those states for financial survival.
    Sep 25 11:04 am |Rating: 0 0 |Link to Comment |View article
  • Global Stock Markets: Let the Gains Begin
    You can take a trading "stance" without actually executing a trade unless there is a trade to take. Don't trade out of boredom, but be prepared with a plan.

    Sometimes you actually have to watch what the market is doing to determine what it is saying. Why try and be a hero? A "long term approach" can also mean "get out and wait for lower prices".
    Aug 11 15:07 pm |Rating: 0 0 |Link to Comment |View article
  • Who's to Blame for the Current Economic Situation?
    All booms and busts are caused by the continued and overblown expansion of credit. There is no way that the stock market, housing, commodities and other historical bubbles can sustain themselves by just the honest cash purchases of humanity. No, it has to be credit, and once credit is provided in excess of that needed for normal business activity and consumption, the additional credit at the margin will be used to purchase assets (stocks and bonds on margin, houses on massive margin, commodities on margin as credit is expanded to those who normally lived on a cash basis). When the musical chairs game stops and the realization hits home that the credit bubble was built on absurd asset valuations rather than the ability to service the debt, the chickens come home to roost.

    The coming move is extreme asset deflation, bank failures and governmental intervention in ways never before seen. As usual it will be done by cranking up the printing presses and firing up the helicopter.
    Jul 11 11:40 am |Rating: 0 0 |Link to Comment |View article

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