heypa
283 posts
msg #54293
- Ignore heypa |
8/23/2007 11:55:21 AM
The non FED created this problem with extremely low interest rates. The so called mortgage raters were derelect in their doing their duty. The mortgage companies werw allowed to become overly creative in writing loans.Where was responsible government oversight? The people taking out loans were not knowlegable enough financially and took unwarrented risks and the media was also culpable.This problem was not a surprise and neither was the last savings and loan problem.
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nikoschopen
2,824 posts
msg #54295
- Ignore nikoschopen |
8/23/2007 12:55:02 PM
Did Marc Haynes say what the Fed will do once we retest the low only to break below and go lower? And lower, and still lower? Not that it will ever happen, but to assume that it's a no-brainer for the Fed to come to investor's rescue just because the low was retested or taken out is a fallacy in my mind.
That's what sets the difference between the bulls and the bears. We bears don't expect a "free lunch" from anyone, even in times when the market is irrationally exuberant. As for the bulls, they make up the most puerile, if not idiotic, reasons (like Buffett might buy Countrywide) in the hopes of enticing the naive among us to go long.
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msummer2007
129 posts
msg #54296
- Ignore msummer2007 |
8/23/2007 2:11:28 PM
I notice CFC is being sold down strongly. Gapped in the morning, was the perfect escape for people who were long already. Who knows which way this will go, but I see more downside coming. I heard on CNBC 87,000 jobs lost year to date in the financial sector. I wonder what these people are going to do now to replace decent paying jobs. This should eventually add more homes for sale in the near future.
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petrolpeter
439 posts
msg #54297
- Ignore petrolpeter
modified |
8/23/2007 2:17:42 PM
Go down and buy a $400,000 home with the walking change in your pocket!Go shopping and sign up for 30 credit cards in less than an hour!C-mon,whats the problem?It took me careful planning to pay off our home to be debt free and then this comes along? They deserve to loose it just as fast as they got it!
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msummer2007
129 posts
msg #54298
- Ignore msummer2007
modified |
8/23/2007 2:32:44 PM
Petrol (LOL) You are absolutely correct, it is far to easy to get credit. My mailbox is inundated with credit card offers. So who is to blame, the consumer or the credit card companies? Good for you being debt free, nice way to live, great peace of mind. I believe in America there are 2 ways to live, #1 totally debt free, #2 totally leveraged to the hilt. Doesn't make sense to be in the middle. You lose your job, or huge medical expenses you stand to lose it all. I am in the middle, and it is definitely not the right financial place to be.
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nikoschopen
2,824 posts
msg #54299
- Ignore nikoschopen |
8/23/2007 3:12:26 PM
CFC is getting pounded because the Countrywide CEO, Angelo Mozilo, made a Freudian slip by saying that the housing slump is far from over and it could lead to a recession. However, what he sez is largely true, for all those people thrown out from these lenders must now tighten their belt and the repercussion hasn't even made its first round.
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retired
28 posts
msg #54302
- Ignore retired |
8/23/2007 5:21:32 PM
I'm wondering what all this has to do with buying low and selling higher day by day?
Retired
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msummer2007
129 posts
msg #54306
- Ignore msummer2007
modified |
8/23/2007 8:42:31 PM
In the real estate market today, it is bought high and sell low, lower, lowest day by day!!! LOL At least in the slot market you can sell, not so in the housing market. So anytime you take a loss selling a stock be thankful you don't have a house to sell.
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nikoschopen
2,824 posts
msg #54307
- Ignore nikoschopen |
8/23/2007 9:59:40 PM
Perhaps now you will finally understand how I worked myself up from nothing to a state of extreme poverty. (Groucho Marx)
I suppose flipping stocks is easier than flipping houses, although it can still cost you an arm and a leg if ure careless. I wouldn't be surprised if some of these flippers end up flipping burgers. ;)
At any rate, it's time for these in-ure-face televised cheerleaders to stop concocting lies and fess up. They're engaging in creative pyramid schemes to intentionally mislead the investors by downplaying the seriousness of the subprime thang when in fact not everything is so fine. This is especially evident when Pimco's Bill Gross bypasses Bernanke and directly implores to "W" to take the economic helm by rescuing the homeowners (read the article here). Now that's something to flip out about. And speaking of flipping out, there's Jim Cramer's unforgettable outburst of "The Fed is asleep at the switch!". That in itself should be taken as a wake-up call for the bears.
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nikoschopen
2,824 posts
msg #54310
- Ignore nikoschopen
modified |
8/24/2007 1:07:33 AM
Aug. 24 (Bloomberg) -- Bank of China Ltd., the nation's second-largest, headed for its biggest drop since going public last year after disclosing almost $9.7 billion of securities backed by U.S. subprime loans, the most of any Asian company.
The shares fell 5.6 percent to HK$3.86 at 11:10 a.m. in Hong Kong after earlier plunging as much as 8.1 percent. Bank of China was the biggest decliner among 41 stocks on the Hang Seng China Enterprises Index, which tracks mainland companies listed in Hong Kong. Its Shanghai-traded shares rose 2 percent today, as the CSI 300 Index headed for its biggest weekly gain since the benchmark was introduced in April 2005. (Italics added)
"Don't panic," Citigroup Inc. analyst Tracy Yu said today in a note to clients. More than 97 percent of Bank of China's subprime portfolio is rated AA or higher, she wrote.
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What a full of crap! Only the amateurs at this stage of the market cycle would believe such BS. And why the hell is the Chinese market soaring when the rest of the Asian markets are dragged down? It must be run by ill-advised amateurs. Well, go figure.
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