Official Let's Make Some Money Off Stocks Thread
09-06-2008, 06:47 PM
#911
Going off how the market shot up in after hours Friday on the rumor I am going to say we rally on the FRE and FNM takeovers.
Government will try HARD to spin it to be a positive. It is an election year after all.
Government will try HARD to spin it to be a positive. It is an election year after all.
09-07-2008, 09:27 AM
#912
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Originally Posted by aklucsarits,Sep 6 2008, 01:39 PM
The Treasury doesn't have much choice. They cannot allow FRE and FNM to fail. It would result in a global financial catastrophe. They have to give FRE and FNM a capital infusion before their situation gets worse. I don't know what the details are. But as long as the government takes an equity stake in FRE and FNM, it should turn out quite well in the long run. You'll hear howls about government bailouts with tax payer money on blogs and in the press. But in the long term, an equity stake bought by the government will actually likely be quite profitable.
Andrew
Andrew
If new loans require a 20% downpayment....and people can't leverage as much as they used to. House prices are going WAY WAY down.
Just for arguments sake.
history on household median income.
source
http://en.wikipedia.org/wiki/Household_inc...e_United_States
Median household income chart
http://upload.wikimedia.org/wikipedia/en/5...me_65_to_05.png
History on median house prices
Source
http://en.wikipedia.org/wiki/Housing_bubble
home-price index chart
http://en.wikipedia.org/wiki/Image:S...E2_Fig_2-1.png
Bubble comparison to Japan's real estate chart
http://en.wikipedia.org/wiki/Image:Economi...ces20050615.jpg
Housing is in one of the largest bubbles out there.....its got a long way to fall. this bubble was created by the fed as well. Yet people are cheering its good that the same people who created the bubble are taking over the mortgages? so what really changed? the people who created the bubble are controlling the mortgage business now. Its messed up all around....and it could get pretty ugly regardless of who owns what. I don't see how the government having a bunch of crap mortgages will do the country any good?
People's pay hasn't increased....as seen above.....house prices have a long way to fall!
50K median income.....4X salary = 200K loan max.
say they save 50K over 5-10 yrs = 250K house max.
The homes in CA are going to get smoked!
09-07-2008, 09:35 AM
#913
Hahahahahah the government left FRE and FNM as penny stocks. Let's see how sick this market really is when futures open tonight.
A big rally on this news would indicate the true state of the US.
A big rally on this news would indicate the true state of the US.
09-07-2008, 05:31 PM
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Futures up 2 and half bills already. It isn't fake, Japan was up 350. I'll probably be dumping SKF and getting ready to reload at even lower levels. GS will need to run 9 points to counter the hit I'm estimating SKF will take. I could use a big up day as well for the rest of my portfolio.
09-07-2008, 05:58 PM
#918
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Guys.....we are screwed.
We have so much debt.....and when I last checked, my taxes have not been raised.
We are taking bad debt......injecting money from borrowing money, and printing money....right at a time when housing is in the midst of the biggest bubble in history.
We are going to see hyperinflation at some point....when that point comes....we will need to raise interest rates to fight inflation.
Since the government switched its debt to short term interest rates....the USA will need to pay back an enormous amount on their debt.....which we don't have the goods to pay back for...since we are now a service economy. And if rates go to 10-12%....the economy will crash....housing will be in the toilet.
The only safe areas will be those with REAL value and maintain their value. OIL, METALS, AGRICULTURE.
I would even buy some USO, UNG, DBA, RJA, RJZ, RJN, take your pic.
We will crash at some point or we will continue to inflate our way out of this. the dollar is going lower.
Just my opinion.
We have so much debt.....and when I last checked, my taxes have not been raised.
We are taking bad debt......injecting money from borrowing money, and printing money....right at a time when housing is in the midst of the biggest bubble in history.
We are going to see hyperinflation at some point....when that point comes....we will need to raise interest rates to fight inflation.
Since the government switched its debt to short term interest rates....the USA will need to pay back an enormous amount on their debt.....which we don't have the goods to pay back for...since we are now a service economy. And if rates go to 10-12%....the economy will crash....housing will be in the toilet.
The only safe areas will be those with REAL value and maintain their value. OIL, METALS, AGRICULTURE.
I would even buy some USO, UNG, DBA, RJA, RJZ, RJN, take your pic.
We will crash at some point or we will continue to inflate our way out of this. the dollar is going lower.
Just my opinion.
09-07-2008, 06:22 PM
#919
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Originally Posted by lOOkatme,Sep 7 2008, 05:58 PM
Guys.....we are screwed.
We have so much debt.....and when I last checked, my taxes have not been raised.
We are taking bad debt......injecting money from borrowing money, and printing money....right at a time when housing is in the midst of the biggest bubble in history.
We are going to see hyperinflation at some point....when that point comes....we will need to raise interest rates to fight inflation.
Since the government switched its debt to short term interest rates....the USA will need to pay back an enormous amount on their debt.....which we don't have the goods to pay back for...since we are now a service economy. And if rates go to 10-12%....the economy will crash....housing will be in the toilet.
The only safe areas will be those with REAL value and maintain their value. OIL, METALS, AGRICULTURE.
I would even buy some USO, UNG, DBA, RJA, RJZ, RJN, take your pic.
We will crash at some point or we will continue to inflate our way out of this. the dollar is going lower.
Just my opinion.
We have so much debt.....and when I last checked, my taxes have not been raised.
We are taking bad debt......injecting money from borrowing money, and printing money....right at a time when housing is in the midst of the biggest bubble in history.
We are going to see hyperinflation at some point....when that point comes....we will need to raise interest rates to fight inflation.
Since the government switched its debt to short term interest rates....the USA will need to pay back an enormous amount on their debt.....which we don't have the goods to pay back for...since we are now a service economy. And if rates go to 10-12%....the economy will crash....housing will be in the toilet.
The only safe areas will be those with REAL value and maintain their value. OIL, METALS, AGRICULTURE.
I would even buy some USO, UNG, DBA, RJA, RJZ, RJN, take your pic.
We will crash at some point or we will continue to inflate our way out of this. the dollar is going lower.
Just my opinion.
How long do you guys see this rally lasting for? Should we be selling on the rally and buy back when it's down? Maybe this will be a short term rally for us?