Housing Bubble Bursting?

[Randolph Kinney]

This is the benefit of globalization. We export our inflation by paying them our excess dollar for their cheep exported goods in our market that keeps our CPI and inflation low. Their central banks buys those extra dollars from their exporters and trade them with local money, the excess of locall money causes inflation so their governmet issues bonds and sells them to people in order to collect those excess money in the people's hands and gives that money to bank again and bank exchanges that money with the dollar that exporters have gotten from us and this goes on and on.
I guess they have a ceiling for issuing their treasury bonds but it seems that they are increasing their ceiling every 6 months so they can sell more bonds to people to collect their excess money from people and prevent inflation but I don't know for how long they can do that.

They can do that as long as the foreign money keeps rolling in. When we go into a recession, our imports will decline giving them less dollars. That hurts their economy so the government unwinds buying up their bonds thereby lowering interest rates. That puts money into their economy same as it would ours.

 

[Randolph Kinney]

Uh-oh! More deflation, credit card debt defaulting

Credit card firms seen preparing for spreading credit crunch

Analysts point to new round of charge-offs expected by major U.S. issuers

SAN FRANCISCO (MarketWatch) -- As shares of Citigroup Inc. tumbled on Monday, analysts pointed to signs that the mortgage meltdown could be spreading to the banking giant and other major credit card players.

 

[Randolph Kinney]

New business - Prop 8 tax reduction, supplying 3 comps

I had a homeowner call me today. They had my business card from two years ago for the appraisal I did on their purchase. The homeowner wanted help filing out an Application For Review Of Assessment with the county.

For $25 and three neighborhood sales, they fill out the form. On the form, it has Owner's Opinion Of Market Value. They file it with the county for a property tax reduction.

It is not even a comp check and I get paid! Whoopee! :new_multi:

 

[moh malekpour]

Moh, i have a pension with my company (I'm a teamster) that is great. I also have a supplemental 401k that the company doesn't match at all but I've been putting 10% in for about 12 years. They have a feature from Morningstar that picks your portfolio for you and I own 9 different funds in there that I know little about. Health care, bonds, foreign etc. Then i have my money that I play with. I had all of it in Vangaurd and a couple a months ago I put half in foreign index funds. I got out of those 3 weeks ago just in time. Then I started reading about Pro Shares etf that short the market. After reading you and Randolph ,Austin and Greg Bell I decided to move 30K into these funds just for fun. I was buying individual stocks and watching Cramer and for some reason I had this uncanny ability to sell before something spiked or buy before it tanked. so now I'm back to mutual funds. I owe my recent good fortune to listening to you guys and am having a ball with these ETF's. The temptation is to move all my dough into these things but with my luck I will be personally responsible for starting a rally if I do!!.

Mark,
You are doing very good. You are very smart guy. You don't need to listen to me, I need listening to you. You are way ahead of me and you have the guts to do it. I am also with Vanguard index too but it is just a safe way to do my little investment. I am not a very risk oriented person.

 

[MARK JOLLIFF]

Mark,
You are doing very good. You are very smart guy. You don't need to listen to me, I need listen to you. You are way ahead of me and you have the guts to do it. I am also with Vanguard index too but it is just a safe way to do my little investment. I am not a very risk oriented person.

Thanks buddy. I don't know about being smart. I was dumb not to go to college. I think I just was lucky enough to stay a garbageman for so long that sooner or later it looked like a smart move. More a sad sign of the times than intelligence. Thanks for the compliments!!

 

[Cigar]

Mark:

Yes the parentheses represents what I lost on paper today, the market is down 218.35, I am under professional management but I'm beginning to wonder, I can pretty much tell without going to my brokerage site by multiplying the Dow by 100, up or down it comes pretty close.

 

[moh malekpour]

They can do that as long as the foreign money keeps rolling in. When we go into a recession, our imports will decline giving them less dollars. That hurts their economy so the government unwinds buying up their bonds thereby lowering interest rates. That puts money into their economy same as it would ours.

Asian nations need to create their own consumption market and not rely on US consumers anymore. Their dependency on US consumption is bad for US economy and bad for Asian economy. Asian continent is huge but they have not been used to spend because except Japan, Korea and may be Singapore, they have been poor and concerned of their future helth and livelihood all the times but now there are emerging with dynamic economics but they got to cut themselves off the consumers of developed countries and rely on their own local markets

 

[moh malekpour]

The coming consumer crunch

The coming consumer crunch. Recession or not, American families will be forced to tighten their belts

The long-awaited, long-feared consumer crunch may finally be here. That might not mean an economywide recession, but the pain for American households will be deep.

 

[Randolph Kinney]

Freddie Mac has big loss, needs to raise capital

Freddie plunges; quarterly loss more than doubles

"Weakening house prices and deteriorating credit have hurt Freddie Mac's results, as well as those of other participants in the mortgage market," said Buddy Piszel, chief financial officer, in a press release. "You can see the impact of these trends in our credit results and throughout our financial statements."

Freddie's third-quarter loss grew to $2.03 billion, or $3.29 a share, from a loss of $715 million, or $1.17 a share, in the same period a year ago.

"The increased net loss, year-over-year, was primarily due to higher credit-related expenses and mark-to-market losses on the company's portfolio of derivatives and credit-related items," Freddie said in a press release.

Specifically, the firm said it has hired Goldman Sachs and Lehman Bros. to study capital-raising options. Freddie's been having problems with its capital levels, like many other firms hit by the mortgage market's problems.

Just like Countrywide and IndyMac, Freddie needs more money to continue operations.

I dunno - it looks like deflation to me, a demand for more money.

 

[moh malekpour]

Freddie plunges; quarterly loss more than doubles

Just like Countrywide and IndyMac, Freddie needs more money to continue operations.

I dunno - it looks like deflation to me, a demand for more money.

It is so ironic for Freddie and Fannie who are in trouble themselves to rescue others who are in trouble. Why they don't rescue themselves first?