stock market

[glovesetc]

was down in the early afternoon and gold was marginally higher as was silver . Bernankes speech was very good today and he sort of told it like it was . The financials are in trouble , banks are going to have to tighten up their lending protocols, and the dollar is in the dumper , and real estate will not recover till early 2009 . Succinct and well put . Wish he would of told us something that every 6th grader did not already know !!!!

[ChefJJ]

Yeah, it's a shame that he didn't tell the foreclosure people not to bite off more than they can chew. And that housing is not so much a commodity than many thought it was 5 years ago!

[glovesetc]

take the time to write essays on things but this one is for you bro !!!!! The housing market is a joke . Lenders lending 125% of the value on a house - wtf - that is the first thing you learn in college - never more then 80% . Guess these clowns missed their refresher courses !!! Then the phantom income and unverifiable income . A mortgage broker buddy of mine was trying to close a loan and he noticed a couple had 3 dogs . He suggested they put as extra income that they were breeders and dog walkers for the neighborhood . They said fine and he added $10,000.00a year to their income so they could qualify for a loan . I have tons of better ones but that was a short one . The flippers and the specultors then got into the game . Look at Miami beach - you can buy a condo down there for 1/2 price as the speculators were driving up the price so the developers kept building . Well who was surprised when the glut hit ??? People are walking away from them and taking huge baths . Greed will always get you in a federal prison and there will be tons of indictments coming . It was replayed in Des Moines , Chicago, Tamps , Mississippi, and all over . Let us not forget all the brain surgeons who re-fied their house 4-5 years ago cause their equity had soared through the roof so they decided to pay off credit card bills and college and other bills and excesses they had run up while trying to keep up with the Jones . Did they learn ? Hell NO . They maxed their credit cards out again and now the piggy bank is empty cause they are upside down in their house payments . Translation means they owe more on their house then it is worth . Talk about stupidity America has to lead the way . Credit cards - what a joke - I have stratospheric limits on mine and I am proud to say I have nevver missed paying a card off in FULL every month for the last 30 years and I am proud of my discipline . My business credit cards had $250,000.00 limits and yes I have a black american express card as well .Not many people know they even exist . The housing market will recover for sure but the orgasmatic highs will not . For all the math whizzes in the room . When the baby boomers start to sell their first and second homes and vacation homes where are you going to find buyers . The boomers were the largest numberwise ever turned out by this country . The following generations are considerably smaller and you are going to see a glut you will not believe. Perhaps the chineese can send some of their mils of people over to buy them - LMAO. Too bad you can not buy water futures somewhere - cause the water problem is going to get nasty in this country sooner then later and the possibility of a war over water is not all that farfetched . Want to see a bunch of people in D.C. in front of the white house ??? Ration water or states start diverting water and or keeping it them selves . New business will sprout up in the states that have water . Showers with fresh water -$10.00 / clothes washed in slightly used water $20.00 a load / bottled virgin water- 24 oz for $10.00 or $50.00 for a 6 pack / and add infitunum . Wonder when people will ever smarten up and get with a program ? It will be interesting to see but I will be pushing up daisies by then . I have had a wonderful life and I thank god for that . I was lucky - YES LUCKY - in business as I always seemed to get out at the right time and never lost money and never beat anybody so I feel pretty satisfied with myself . My only regret was never having kids as I was always too busy making money!!! that is one thing I would change and the only thing . Damn this is getting long and i could go for another 100,000 words easy - lol .

[ChefJJ]

That's straight talk gloves. I agree...there was a lot of the "somethin' for nothin'" syndrome in real estate there for a while.

I work indirectly with real estate and have seen this whole thing going down.

[glovesetc]

I only tell it like it is - damn an old saying from My days at Woodstock in the rain and the mud and the pussy - damn seeing the ' Who " perform the rock opera Tommy , Jimmi hendrix, janis joplin , country joe and the fish, strawberry alarm clock , joe cocker , joan baez, clapton and the cream , the band , dylan , jefferson airplane , and all the great groups . This country has best wake up or we will all be reading of zens conspiracies in the morning paper - lol . Zen I really love your posts by the way buddy !!!!!! I am in the twilight so all is good by me but people have got to get over this something for free syndrome and taking shortcuts . The shortcuts are to hell only !!!!!!Perlman is gonna spend the rest of his life in jail the moron . All for money and some young buys as* - please give me a break - jail is not worth ONE hour of my time . I like travelling all over to see concerts , great museums , architecture , antique collecting , casinos , women in FM stockings , great food prepared by world class chefs , reading and the net and I could go on for years . Life is so short - you are on this earth only for a short time so have a good time !! In the realm of things as far as the clock of time goes your length of time on this planet could be measured akin to the size of an atom being split if you get the gist . Enjoy , be happy , and live folks cause it all ends too soon !!!!

[sagefr0g]

these last few months have been the most downside trend this year. the sub-prime credit thing has i know a lot to do with it. i'm just going to ride it out unless it looks like the great depression all over again. what else can the little guy do in times like these?

[glovesetc]

there is little to do except sit and watch and the big guys will get wealthier for sure . There is an old saying that was bandied about in the late 70's when I owned My own seat on the IMM in chicago . The IMM is the international Money Market . When the public gets in the smart money is long gone and sipping a Couvosier in geneva Switzerland and it holds true to this day . The sub-prime is one aspect but how about all the big financials left holding the bag and the underwriters like Goldman Sachs, Smith and Barney , Merrill , and the list is endless . This is going to cause pain all around cause peoples greed got the best of them all the way from the big boys to the lowly broker who couldn't belive how many homes a day he was selling by fraudently helping people fill out loan applications , to the banks that looked the other way and approved them all the way up to the syndicates who bundled them and then resold them . There was alot of money made and alot lost as always . here is a sneak preview - you think the dollar is getting killed now ?? Wait till the chineese , russia , the ECM, and india decide it is time to get out and start dumping !!!! Damn I hope I am alive to see it as they bring the markets to a halt . LMMFPLAO!!!!!!! Those countries are holding a huge amount of our money and debt . Sure Bernanke can lower the interest rate but then who is going to buy them at 2/3/4/% when inflation is running higher then that and that will make the T-Bills/Treasuries , and short term notes worthless . They will shun the dollar denominated debt and dollars and go buy Chinas/Indis/french / paper that is paying more or maybe invest in water , siybeans , gold , silver or whatever to get the highest possible return on their money . Did you get a load of GM - LOSING 39 BILLION IN A QUARTER!!!!WTF are these guys brain dead or did somebody pull the ventilator on their thought process. Hell if anybody ever ran a business like that in this room they would be investigated by every single alphabet agency known to mankind like the FBI/SEC/DEA.ICS. Homeland security, IRS - hell you get the idea .

[ChefJJ]

Originally Posted by sagefr0g

these last few months have been the most downside trend this year. the sub-prime credit thing has i know a lot to do with it. i'm just going to ride it out unless it looks like the great depression all over again. what else can the little guy do in times like these?

Stick with it frog man.

[glovesetc]

that is the part i left out plus he has no choice unless he wants to get killed with taxes and penalties . !!!!

[toastblows]

You wonder why the fed didn't step in 5 years ago when it was blatently obvious loan/value on mortgages was out of control.

A local news story investigated some banks that had appraisers setting the value of the property higher than it was worth so the buyer could pay the sellers inflated price circa 2004-2005. This is an investigation worthy story? I thought it was common knowledge...and if you didnt figure that out until 3 nights ago...news crew...you are 5 years behind as well (see my fed comment )

Anyhoo, the market hasn't been that bad this year, solar and shipping stocks are doing nicely (with a week or 2 like this poopstorm having to bight your fingers hourly)...but maybe im just a smart investor....no im really not, but i know that investing in say Citi, Toll brothers, GM (or any american auto corp) ....you need to be "smarter than a 5th grader".....to not get burned...i.e. dont invest in shat that is obviously shat.

p.s. its been about 1/2 day since i read there is a "subprime" problem dragging on the economy....incase anyone hasnt noticed in the last 12 months....i just wanted to let you know, "subprime" mortgages are hurting us (<-sarcasm)....maybe this blog entry will force the DJI down another 200 alone