With the inflation in the past the best thing to be in was property.
You get a loan, as much as you can afford.
Over the course of 25 years the value of the loan gets hammered by inflation so if you get an interest only loan you can pay interest only and then use the value of the property to pay off the capital balance of the loan at the end of the period.
The key is you need a decent job, one that will service the loan throughout its term.
Wages rise with inflation, as as wages rise so does the amount people can borrow, which pushes up property values.
Its a long term strategy.
You get a loan, as much as you can afford.
Over the course of 25 years the value of the loan gets hammered by inflation so if you get an interest only loan you can pay interest only and then use the value of the property to pay off the capital balance of the loan at the end of the period.
The key is you need a decent job, one that will service the loan throughout its term.
Wages rise with inflation, as as wages rise so does the amount people can borrow, which pushes up property values.
Its a long term strategy.
Wages are not going to keep pace with inflation.
Really all people need to know is that housing was a major part of the us job market and economy and via home equity loans, it also fueled excessive amounts of consumption.
Now the housing market is crashing and thus the consumption is going to greatly contract. Banks dove into housing thinking it could never fall in price. Well, lookie here...whaddya know...not only is it falling, its collapsing in some areas. OOPS!
Its not rocket science figuring out whats going to happen when a large chunk of the job market disappears and consumption dries up.
Many of peoples' 401k, pensions, and various quasi entitlements are going to be torpedoed when the titanic (American economy) sinks.
Homeowners will see increased taxes before local govts cut their own spending. So, I personally think people holding most of their wealth in their home of residence are going to have a healthy haircut. It wont be a total loss, but American housing (speaking in terms of total dollar amount) is among the largest bubbles in recorded history.
Commercial real estate....if consumption collapses, the numerous strip malls that have popped up throughout every city wont be worth much more than the bi-annual property tax bill.
Farmland will have some value, but again, the taxman could come calling.
One at a time, people will awaken and buy physical gold and silver.
Frankly, Im surprised it has taken this long.
Really all people need to know is that housing was a major part of the us job market and economy and via home equity loans, it also fueled excessive amounts of consumption.
Now the housing market is crashing and thus the consumption is going to greatly contract. Banks dove into housing thinking it could never fall in price. Well, lookie here...whaddya know...not only is it falling, its collapsing in some areas. OOPS!
Its not rocket science figuring out whats going to happen when a large chunk of the job market disappears and consumption dries up.
Many of peoples' 401k, pensions, and various quasi entitlements are going to be torpedoed when the titanic (American economy) sinks.
Homeowners will see increased taxes before local govts cut their own spending. So, I personally think people holding most of their wealth in their home of residence are going to have a healthy haircut. It wont be a total loss, but American housing (speaking in terms of total dollar amount) is among the largest bubbles in recorded history.
Commercial real estate....if consumption collapses, the numerous strip malls that have popped up throughout every city wont be worth much more than the bi-annual property tax bill.
Farmland will have some value, but again, the taxman could come calling.
One at a time, people will awaken and buy physical gold and silver.
Frankly, Im surprised it has taken this long.
http://www.youtube.com/watch?v=SGkrNJ19DSU
Ricky Santelli calling out Cramer for talking out of both sides of his mouth.
Ricky Santelli calling out Cramer for talking out of both sides of his mouth.
bank stocks are holding up "the market" but aaple making new lows again and alot of tech is getting creamed now.
all the 4 horsemen tech stocks are getting hammered.
nasdaq testing the morning lows.
me thinks some short covering with financial/bank stocks and now its techs turn in the bear barrel.
all the 4 horsemen tech stocks are getting hammered.
nasdaq testing the morning lows.
me thinks some short covering with financial/bank stocks and now its techs turn in the bear barrel.
I may start posting an over/under wager for this prop.
The first mute for cnbc each day.
Today it didnt happen until 11:45am which is alot longer than most days.
They had a real idiot on there talking about people should never bet against America and some other cheerleading type bs.
I dont mind being patriotic, but when it comes to stocks that type of babble really doesnt have any business being on cnbc.
People are getting buried and that type of advice isnt going to help anybody.
Furthermore, 4 horsemen are REALLY getting hammered now.
30 billion of market cap shaved AAPL since this time yesterday.
Thats 2.5 X the total market cap of GM for those keeping score.
The first mute for cnbc each day.
Today it didnt happen until 11:45am which is alot longer than most days.
They had a real idiot on there talking about people should never bet against America and some other cheerleading type bs.
I dont mind being patriotic, but when it comes to stocks that type of babble really doesnt have any business being on cnbc.
People are getting buried and that type of advice isnt going to help anybody.
Furthermore, 4 horsemen are REALLY getting hammered now.
30 billion of market cap shaved AAPL since this time yesterday.
Thats 2.5 X the total market cap of GM for those keeping score.
it's funny you look around, seems like everything is expensive. RE, stock market, coffee, food, gas, etc etc. In reality this stuff only appears expensive to us, because of the USD devaluation.
Sorta like going to Mexico back in high school. for 70% of the locals, the shit down there was out of reach. for Americans though, it was a bargain. That's an extreme example, but where we are headed in time
Sorta like going to Mexico back in high school. for 70% of the locals, the shit down there was out of reach. for Americans though, it was a bargain. That's an extreme example, but where we are headed in time
Well, your large cap tech may be doing well today, but plenty of large cap tech stocks are sharply down so far this morning.
Dell down 5.75% new 52 week low and near 2002 low
brcm down 6.2%
csco down 3.2
yhoo down 4% multi year low
3 horsemen down avg about 8%
1 horseman aapl down 16%
bidu down 8%
jdog we usually agree but i dont think america is really at bargain levels just yet. for example, just because another country is 3x overvalued and we are only 2x overvalued, doesnt equate to us being a bargain.
QQQQ nasdaq 100 is lower than yesterdays opening price.
Same with nasdaq composite.
Same with emerging markets etf.
Same with IOO (etf 100 worlds largest companies).
Tomorrow, investors on long side of tech stocks better hope microsoft earnings get a warm welcome from the market or the bears are going to tear out another hunk of flesh.
Look out below.
Same with nasdaq composite.
Same with emerging markets etf.
Same with IOO (etf 100 worlds largest companies).
Tomorrow, investors on long side of tech stocks better hope microsoft earnings get a warm welcome from the market or the bears are going to tear out another hunk of flesh.
Look out below.
New daily lows for the 4 horsemen (except RIMM) AGAIN and BIDU is also collapsing.
The bank stocks such as GS are rolling over now, but most still + for the day.
Its time for the bulls to abandon ship folks.
What we are witnessing is a total dismantling of an economic empire.
And the #1 culprit (among many) is America taking its currency from a gold standard.
The forefathers and founders of America are rumbling in their graves watching this.
The bank stocks such as GS are rolling over now, but most still + for the day.
Its time for the bulls to abandon ship folks.
What we are witnessing is a total dismantling of an economic empire.
And the #1 culprit (among many) is America taking its currency from a gold standard.
The forefathers and founders of America are rumbling in their graves watching this.
:aktion033
