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Old 08-17-2009, 05:06 AM  
EscortBiz
Fuck Checks, CASH only!
 
Join Date: May 2002
Location: New York City
Posts: 19,422
Some people need to stop and understand that when someone makes a prediction about the market hes addressing those with a medium - long term investment goal.

See a person who day trades can get hurt but only to a certain point, yet a swing trader or those with money in the market but will need it within 1-3 years can get slaughtered.

So when a doctor tells a guy "hey if you don’t stop popping pills you will fuck your kidney up" or "if you don’t stop smoking you will fuck your lungs up" and a day or month goes by and the guy is still alive and well does that mean the doctor is a fool a idiot and a doomsday type guy?

See when you take away all the smoke and mirrors the situation doesn't look right and yet no one learned from the housing bubble at all.

Why did housing prices sky rocket?

Because there was easy money out there, and when you offer most people money they will take it and not give a shit about not being able to pay back, once reality hit and easy money ran out the pull back was dramatic and fast.

So yeah many started predicting a housing crash back in late 04, where they fools? No, they simply saw it for what it is.

So we now have a situation where the gov gave people 4k+ or so towards buying a new car from companies the gov already gave billions to stay in business. So would you say a increase in car sales means the consumer is now healthier and everything is great? Would you say the car companies are now good to go? Or do you say wait it only went up because easy money and in a year from now with the cash they burn they will need more money? And the majority type of people who turned in their clinkers are the type that once they have a car they keep it for many years?

How is the employment rate really doing? How about the underemployment rate?

How about housing, realtors claim they cant keep up with the demand and you should call them now yet we see owners reducing their prices all the time?

With the huge amount of commercial space available and tons more retailers closing shop are you sure we are not about to see a commercial real estate collapse?

What about those with loans due to reset and those with 7 year option ARMS, do you really think we won’t see a new wave of bad loans soon?

And for those who buy gold stocks or gold are you trading it or holding on to it for when the dollar crashes?

If you are trading it ok I understand you buy low sell high, but for those holding on to it when the dollar crashes could you explain to me exactly how you will turn those gold stocks or bars into cash even remotely to what you paid for it? Isn’t it better to buy those gold coins that have chocolate in the middle so at least when things crash you have what to eat?

Remember not to long ago when the gov said we will hire millions of people to redo the roads, right now if you have a crew of 10 working on a road traffic is backed up for hours, how will anyone get anywhere with millions of road workers redoing the highways?

How about the idea of creating jobs by changing all light bulbs in schools? It sounds great doesn’t it? But what will those people do once they are done changing those bulbs?

I can go on and on all day and night how people are just sheep and repeat shit without thinking what they are saying.

The bottom line is the careless reckless consumer created this mess, the same consumer that shoves all types of pills down their throat because it feels good now the same consumer that eats junk because it tastes good now these same people said “sign me up for this home and refinance plan because it will make me happy now”. Only the consumer will solve this by working and saving and starting to rebuild things right. I can only hope that this will rebuild things better as people will understand work and savings, vs. overextending their credit.

Then again maybe now is the time to buy because when things turn around it will be so quick that you won’t be able to get in? In that case are you sure the money you are investing is cash you can have sit in the market long term?

Here is another thing to think about, everyone now when it comes to the topic of the housing bubble is quick to say "what the heck where these bankers and experts thinking?" Well ask yourself what are we doing right now that those very experts are behind that we will soon be yelling "what the hell where they thinking?"
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