Market crash: are we there yet ?

[bestfriend]

Did I say close down? I meant up, close up.

[SteveSouthwood]

Originally Posted by Cruisingdad

Yes, yes, yes. We are all tied together unless you do no imports, no exports, and are totally self sufficient.

- CD

Even when you're out on your boat you can't avoid this. You need to import beer (or hops, etc.) and export photos of you drinking said beer.

[Sapperwhite]

We'll see what happens Monday. No matter how much money is doled out to support the lenders and the firms that bought these mortgage packages, someone in middle America still has to make the mortgage payments. All of these discounts have to be paid back somehow. Will some Chinese bank buy a ridiculously overpriced mortgage package from "Joe Wall Street"? Doubt it, they know it's worthless too. Will the Fed cut interest rates in Sept. to promote lending, go ahead and do it, inflation will follow.


I still stand by "drink heavily and recycle."

[SteveSouthwood]

Originally Posted by Sapperwhite

More dollars spent on less product = less value.

Please explain this point further.

[Cruisingdad]

Originally Posted by SteveSouthwood

Even when you're out on your boat you can't avoid this. You need to import beer (or hops, etc.) and export photos of you drinking said beer.

Straight tequilla from Mexico. Come on, Steve, I thought you were a good investor!! HAHA!

[uspirate]

Originally Posted by SteveSouthwood

Even when you're out on your boat you can't avoid this. You need to import beer (or hops, etc.) and export photos of you drinking said beer.

hey, I can do this looking a tab better today.
there are some nice deals on trading at the moment, thought about dumping the entire savings into some of this stuff but dont have the nads. however, if i woulda bought 1000 shares of wynn in 03/04 for $16 per=$16,000. i coulda cashed out last week $115k. what a dumb @$$ i am (dont say it)

[DJEVANS]

CD-I just read your post and wanted to say that you make a very good point. My husband and I are total oddballs in our circle of friends because in our early 30's with young kids we have no consumer debt (ie credit cards), a mortgage that we pay on time, we drive older cars that are paid for, and no "toys". We have friends who have owned a home for 4 years that they have now refinanced 3 times in order to have play money for various things. And they think we're crazy?! But that's the (new) American way, and we will pay for it someday.

[Rickm505]

CD May I shed some light on one of the points you've made today? First off, I agree with you that rates probably shouldn't have been touched today, but the FED decided and that is that.

Lowering the discount rate has no corelation to easy credit. Creditworthiness is determined by underwriting guidelines, not by rate. Today's cut won't have any effect on this.

What the FED really did today was to change their repayment plan. Banks now have 30 days to sell the underlying security (mortgages) before they have to pay the FED back. This action is what eased the pressure today as all banks were running out of money to lend. The rate cut was for show and tell. It made Wall Street feel much better.

Now the clock is ticking.... 30 days. Secondary mortgage markets shut down on August 4th. We (the banks) now have 30 days to convince investors it's OK to buy mortgage backed securities again. If we can't do this, the FED's intervention today will be in vain.

How will we do this? By strengthening underwriting guidelines and limiting credit to all but the most credity worthy. If we don;t do this we're out of business.

Rest easy as there will be no easy credit in the near future.

[Cruisingdad]

Originally Posted by Rickm505

CD May I shed some light on one of the points you've made today? First off, I agree with you that rates probably shouldn't have been touched today, but the FED decided and that is that.

Lowering the discount rate has no corelation to easy credit. Creditworthiness is determined by underwriting guidelines, not by rate. Today's cut won't have any effect on this.

What the FED really did today was to change their repayment plan. Banks now have 30 days to sell the underlying security (mortgages) before they have to pay the FED back. This action is what eased the pressure today as all banks were running out of money to lend. The rate cut was for show and tell. It made Wall Street feel much better.

Now the clock is ticking.... 30 days. Secondary mortgage markets shut down on August 4th. We (the banks) now have 30 days to convince investors it's OK to buy mortgage backed securities again. If we can't do this, the FED's intervention today will be in vain.

How will we do this? By strengthening underwriting guidelines and limiting credit to all but the most credity worthy. If we don;t do this we're out of business.

Rest easy as there will be no easy credit in the near future.

The problem isn't the credit. THat is the effect. THe problem is the jobs. Even more the problem is the mindset. You can't change those two on a 1/2 point drop. That takes a lot of hardship.

- CD

[Cruisingdad]

Originally Posted by DJEVANS

CD-I just read your post and wanted to say that you make a very good point. My husband and I are total oddballs in our circle of friends because in our early 30's with young kids we have no consumer debt (ie credit cards), a mortgage that we pay on time, we drive older cars that are paid for, and no "toys". We have friends who have owned a home for 4 years that they have now refinanced 3 times in order to have play money for various things. And they think we're crazy?! But that's the (new) American way, and we will pay for it someday.

DJ,

We would get along very well. The reason I have what I have is not because of what I make, it is because of what I have left over at the end. THat is the key. One of my first jobs while in college was a bank teller. I remember watching this chinese/vietnamese family pull up in the drive through in their POS toyota. It was smoking in the drive thru. No kidding. THey stuck their stinky deposit of chinese food smelling cash in the tube and I deposited. THen antoher deposit from the other family member. THen another.

I just shook my head and thought, "Bunch of losers". They all lived in the same house (same address), though differnt account numbers. How do I know this? I pulled up a balance on the account: It had HUNDREDS OF THOUSANDS OF DOLLARS IN THERE! I kid you not. And they sent large wires back home every month to the rest of their family.

Many may think they are all screwed up and just can't get it. I think we may be the ones that can't get it. Honestly, they had a profound impact on me as I changed my entire outlook: Don't live within your means. Live well under them.

- CD