No credit=no consumerism=no increase in wealth 'cos people only buy the basics of life
Credit encourages risk and innovation and entrepreneurship
No Credit discourages risk and innovation and entrepreurship
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Your first Bar Woofy.
You needed a loan, unless mummy and daddy were rich.
In a credit environment you can get 80-90% of it.
In a GOLD STANDARD environment you'll get 40% tops, and more than likely, 30%.
Would a 30% loan have got you going Woofy?
The other 70% comes from you.
Alternatively. You become a low wage employee. Forever.
Credit encourages risk and innovation and entrepreneurship
No Credit discourages risk and innovation and entrepreurship
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Your first Bar Woofy.
You needed a loan, unless mummy and daddy were rich.
In a credit environment you can get 80-90% of it.
In a GOLD STANDARD environment you'll get 40% tops, and more than likely, 30%.
Would a 30% loan have got you going Woofy?
The other 70% comes from you.
Alternatively. You become a low wage employee. Forever.
eek, I didnt need a loan. I worked and saved my money for several years before leaving my job.
I do however, get your point.
The debate is that too much credit is obviously going to end badly when too much money is lended to too many people without reasonable guidelines.
I see nothing wrong with people using leverage/debt, but lets be serious...the real estate borrowing was and still is beyond ridiculous.
0 money down to buy an overpriced home. Yeah, thats ending well for alot of those folks and now people that borrowed and lended in good faith are paying the price for that negligence.
I do however, get your point.
The debate is that too much credit is obviously going to end badly when too much money is lended to too many people without reasonable guidelines.
I see nothing wrong with people using leverage/debt, but lets be serious...the real estate borrowing was and still is beyond ridiculous.
0 money down to buy an overpriced home. Yeah, thats ending well for alot of those folks and now people that borrowed and lended in good faith are paying the price for that negligence.
up.
CFC under 6.
The largest mortgage broker in the world is no more. Down the tubes.
We are witnessing history here. This is not bird flu, its ebola and its going to be all over the place with these financial institutions....Watching BAC and C closely in the next month to see what they are ready to say about write downs,
The largest mortgage broker in the world is no more. Down the tubes.
We are witnessing history here. This is not bird flu, its ebola and its going to be all over the place with these financial institutions....Watching BAC and C closely in the next month to see what they are ready to say about write downs,
tiznow unless the mutual funds are hit with high amounts of redemptions they just take some small hits and rotate into stocks like bud, mo, ko, pg.
I agree that with all this bad news actually the overall stock averages are holding up ok.
Also, of course most of here already know this but have to quote the market now in terms of commodities to get the truth about how its doing.
Dollar devaluation masks alot of the stock markets' weakness.
I agree that with all this bad news actually the overall stock averages are holding up ok.
Also, of course most of here already know this but have to quote the market now in terms of commodities to get the truth about how its doing.
Dollar devaluation masks alot of the stock markets' weakness.
shorting homies was the easiest money i ever made, to zero some will go
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KB Home Posts Wider 4Q Loss, Shares Fall
Tuesday January 8, 11:44 am ET
By Alex Veiga, AP Business Writer
KB Home 4Q Loss Widens on Tax, Impairment Charges Amid Housing Slump, Shares Tumble
LOS ANGELES (AP) -- KB Home, one of the nation's largest homebuilders, said Tuesday its fourth-quarter loss swelled as ongoing housing market woes led to fewer home sales and lower revenue, prompting the company to book charges to write down unsold inventory and for a tax allowance. Its shares tumbled more than 9 percent.
Chief Executive Jeffrey Mezger warned that 2008 "will be another tough year for the homebuilding industry."
The homebuilding sector has been struggling through the housing slump and the credit crisis prompted by last summer's spike in defaults and foreclosures on subprime mortgages, home loans made to people with past credit problems.
That has deepened the housing slowdown, leaving many would-be buyers reluctant to enter the market until signs of improvement emerge. Meanwhile, many buyers have been unable to get financing because lenders stung by rising loans gone bad have tightened qualification criteria.
For the quarter ended Nov. 30, the company posted a loss of $772.7 million, or $9.99 per share, compared with a loss of $49.6 million, or 64 cents per share, in the year-ago period.
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KB Home Posts Wider 4Q Loss, Shares Fall
Tuesday January 8, 11:44 am ET
By Alex Veiga, AP Business Writer
KB Home 4Q Loss Widens on Tax, Impairment Charges Amid Housing Slump, Shares Tumble
LOS ANGELES (AP) -- KB Home, one of the nation's largest homebuilders, said Tuesday its fourth-quarter loss swelled as ongoing housing market woes led to fewer home sales and lower revenue, prompting the company to book charges to write down unsold inventory and for a tax allowance. Its shares tumbled more than 9 percent.
Chief Executive Jeffrey Mezger warned that 2008 "will be another tough year for the homebuilding industry."
The homebuilding sector has been struggling through the housing slump and the credit crisis prompted by last summer's spike in defaults and foreclosures on subprime mortgages, home loans made to people with past credit problems.
That has deepened the housing slowdown, leaving many would-be buyers reluctant to enter the market until signs of improvement emerge. Meanwhile, many buyers have been unable to get financing because lenders stung by rising loans gone bad have tightened qualification criteria.
For the quarter ended Nov. 30, the company posted a loss of $772.7 million, or $9.99 per share, compared with a loss of $49.6 million, or 64 cents per share, in the year-ago period.
It doesnt mask all the weakness but I agree its a major factor.
Some of the stock markets move higher is from oil stocks which has fundamental reasons why they have risen.
Also several base metals producers on s/p 500 and exxon mobil is one of the 30 dow jones stocks.
The defense contractors also play a part in both dow jones and s/p.
I think another 8%-10% decline is pretty much in the bag for the US indices - possibly bottoming late 1Q mid 2Q 2008
I'm hoping the commoditiy stocks tank right along side of them....got some greenbacks in search of a home. Would love nothing more than to add to existing positions on the cheap.
read an article in Reuters yesterday saying that hedge funds and institutions are preparing to load up HEAVY into the sector....totally agree.
2009 is when the public gets involved and we see a parabolic move in all commodity stocks across the board.
I'm hoping the commoditiy stocks tank right along side of them....got some greenbacks in search of a home. Would love nothing more than to add to existing positions on the cheap.
read an article in Reuters yesterday saying that hedge funds and institutions are preparing to load up HEAVY into the sector....totally agree.
2009 is when the public gets involved and we see a parabolic move in all commodity stocks across the board.
everything is okay guys, all clear
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Market cuts losses on Countrywide denial
Tuesday January 8, 1:28 pm ET
NEW YORK (Reuters) - Stocks cut their losses on Tuesday after Countrywide Financial Corp (NYSE:CFC - News) said there was "no substance" to market rumors the largest U.S. mortgage lender was facing bankruptcy.
The rumors had extinguished a morning rally on Wall Street.
Shares of Countrywide fell more than 24 percent and came close to an eight-year low on the New York Stock Exchange before paring losses. They were down 10.9 percent at $6.81 after the denial.
The Dow Jones industrial average (DJI:^DJI - News) was down 11.46 points, or 0.09 percent, at 12,816.03. The Standard & Poor's 500 Index (^SPX - News) was up 0.79 points, or 0.06 percent, at 1,416.97. The Nasdaq Composite Index (Nasdaq:^IXIC - News) was up 2.99 points, or 0.12 percent, at 2,502.45.
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Market cuts losses on Countrywide denial
Tuesday January 8, 1:28 pm ET
NEW YORK (Reuters) - Stocks cut their losses on Tuesday after Countrywide Financial Corp (NYSE:CFC - News) said there was "no substance" to market rumors the largest U.S. mortgage lender was facing bankruptcy.
The rumors had extinguished a morning rally on Wall Street.
Shares of Countrywide fell more than 24 percent and came close to an eight-year low on the New York Stock Exchange before paring losses. They were down 10.9 percent at $6.81 after the denial.
The Dow Jones industrial average (DJI:^DJI - News) was down 11.46 points, or 0.09 percent, at 12,816.03. The Standard & Poor's 500 Index (^SPX - News) was up 0.79 points, or 0.06 percent, at 1,416.97. The Nasdaq Composite Index (Nasdaq:^IXIC - News) was up 2.99 points, or 0.12 percent, at 2,502.45.
Im planning to spend most of latter part of 08 and all of 09 out of the country so Im just going to let my current positions ride without looking everyday and enjoy myself instead of sitting at this desk all the time.
We are going to see the entire commodity sector take off just like the internet stocks did during late 1990s.
As long as we get out anywhere remotely close to the peak there will plenty of partying going on here.
