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Old 05-24-2009, 12:37 AM
 
13,775 posts, read 25,160,968 times
Reputation: 7987
Quote:
Originally Posted by RedNC View Post
The housing crises is a symptom of a much larger problem and that is good paying jobs being eliminated or cheaper labor lowering wages.
I know this example is anecdotal...

I know at least 25 or so foreclosure properties in the San Francisco East Bay that were all bought by recent emigrants...

Every one of these homes went to foreclosure because the identical home in the same neighborhood can be rented for less than half what it costs to pay the mortgage, taxes and insurance and this doesn't factor the added cost for maintenance expenses...

It was one thing when people believed real estate had no where to go but up... quite another when the home you're paying close to $4,000 a month is depreciating day by day...

Just the property tax on one of these homes is close to $750 a month...

I've picked up several new renters and all have said home ownership just isn't worth it... they all lived in the neighborhood and several had rented from me before.

None of the 25 people have lost their jobs or had their income reduced... they just grew weary of doing without because the cost of home ownership left nothing to save for retirement, vacation or simply enjoy life...
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Old 05-24-2009, 05:11 AM
 
Location: London
200 posts, read 727,030 times
Reputation: 106
Quote:
Originally Posted by Jaggy001 View Post
The dollar only appreciated against other currencies over the past 6 months because a) their economies were in even worse shape than ours (the UK) or b) the US was perceived to be a safer haven for capital than other economies. As there is a feeling that the recession has bottomed out, money is flowing out of the dollar and into stocks. Hence the decline.

The dollar will continue to be weak until the government addresses the chronic deficit. Given the bailout that is a long way off so get used to a weak dollar.
I can tell you that from an outsider there are very few people who are stupid enough to see the US as a safe haven. The biggest state which accounts for a third of the US GDP is stone motherless broke along with a whole host of other states. They're going to be bailed out with a printing press as welll. Why would any sane person see the US as a safe haven?

The notion that "it's worse everywhere else" propaganda put out by CNN, bloombergs, CNBC etc is laughable. Yes it's worse in a few countries, Ireland, Spain maybe. Uk is nearly as bad. But there are a lot of countries Canada, Australia, Sweden, Norway, some western european countries who are in much better shape and have much sounder banking systems. They won't avoid a recession but they have put aside for the rainy day. They are running deficits but it's with money they have - not money they don't have. The US is at the bottom end of the OECD countries.

The reason the dollar rallied last year was simply because it was the reserve currency through a mass liquidiation phase. It's now being unoffically dumped as the world currency. A lot of countries (china, middle east, even Latin America) are using the Euro or their own currencies to trade now. They know what's happening.

I'm worried about a lot of my friends in the US especially California. I don't know if the dollar is going to collapse as some say but it's in for a rocky time.
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Old 05-24-2009, 05:37 AM
 
1,692 posts, read 2,881,838 times
Reputation: 1332
Quote:
Originally Posted by Stac2007 View Post
You are so right. Every one expected the market to return to the glory days. In fact Wall Street kept telling us every day the market was going to turn around within the year. The media talking heads from Fox News and CNN whose job it was to analyze the market said this was only a short term problem. Now we know all they were doing was holding back the flood gates so the privileged could pull out of the market before the dam came falling down. The rich are now moving their money into gold at a record pace. The economic crisis is so deep we don't know how deep the rabbit hole really is.
From my observations it all started when Regan changed the tax laws in favor of the rich.
In 84 I purchased a condo. I was able to change my W2 to claim 14 dependants and with my deductions at the end of the year I got a little back from the FED. After his changes I had to change it to 0 and add about $40. per week and owe about $100 at the end of the year. I was making about $30k per year, so no I was not rich.
Around the same time the condo was going up at a stupid rate and most of the new owners were just investors just buying and renting them out. This was a result of the new found wealth of the benefactors from Regan's tax cut. With their tax cut they were buying up multiple homes thus reducing the supply and driving up prices like never before.
Prices came down in the early 90's due to a loss of nearly 1 million aerospace jobs some of the first indications of job losses to come. Many of the workers couldn't find comparable jobs and had to retrain for other work. I know this because many of the people in my computer classes were laid off aerospace workers.
Next was the change in capitol gains to 15%. This gave so much new found wealth to so many that they didn't know what to do. DOTCOMS were springing up every day. Everyone was looking for that next startup so they could get in at the ground floor and bail out after it quadrupled. Skim off the profits and find another one. With a 15% tax hit it, why not? Ever wonder why most top salaries are @ $1.5millon and the rest is in stock options, or some kind of deferred payment? The taxes shoot up after that and selling stock that you pay a fraction of it's current price is taxed at a much lower rate. This crap about "taxing the rich" and they create jobs and all that BS. What has really happened is the lower rates have created the last two bubbles and a few billionaires all at the cost of the middle class.
When the dotcoms fizzled out and the market crashed the rich began to move what money they had left into real estate. Houses shot up overnight. I watched as home after home in my neighborhood would sell with multiple offers the day they were listed. Since I lived in what is known as "entry level" housing most of the new owners were speculators looking for rental houses. Now these houses are in foreclosure, or already bank owned.
Might be that the lower tax rate on the rich and the elimination of good paying jobs and bubble economies were just a coincidence, but I'm not buying it.
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Old 05-24-2009, 09:19 AM
 
Location: Rockland County New York
2,984 posts, read 3,593,348 times
Reputation: 1246
Quote:
Originally Posted by Traderx View Post
What proof do you have of this?
Are you kidding me? The demand for gold is being pushed up by two factors. The billions of dollars which the Obama Administration created for the bailouts are driving down the value of the dollar. Secondly, our government is now collecting billions of dollars less in tax revenue due to the unemployment factor in the country as well as peoples buying power. These two factors are forcing people to dump their dollars.

In Europe there is a call for the dollar to be replaced by the Euro when trading in oil. That strong opinion does not make the dollar look favorable. When my wife and I were in the Cayman Islands last year, a number of jewelry shops would not take dollars when doing trade. On their windows was the sign we accept Euros. If people are waiting for some one to tell them hey the dollar is sinking, you might as well wait for the sky to fall. People have to start using their common sense to survive these days. If you wait long enough like my mother in-law who listen to the idiots on TV you will loose your shirt.
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Old 05-24-2009, 10:11 AM
 
975 posts, read 1,056,069 times
Reputation: 507
Quote:
Originally Posted by Stac2007 View Post
Are you kidding me? The demand for gold is being pushed up by two factors. The billions of dollars which the Obama Administration created for the bailouts are driving down the value of the dollar. Secondly, our government is now collecting billions of dollars less in tax revenue due to the unemployment factor in the country as well as peoples buying power. These two factors are forcing people to dump their dollars.

But what proof do have that the rich are buying gold at a record pace? What you offered above is an opinion, not proof.

The dollar is higher than it was a year ago before all the bailing out and gold is about the same and oil is lower. And, since the stimulus money started being spent the stock market has gone up over 30%. Wouldn't that suggest the rich are buying stocks, not gold? And given that money market assets are still at all time highs wouldn't that suggest the rich are not doing anything?

My point is you make these bold aggressive statements of fact, but in truth they are nothing more than your shallow, uneducated and poorly thought out opinions.

Let's face it. You have no more idea of what the rich are doing than anyone else. On top of that, there are a lot of rich people and to think they're all doing the same thing, which is what you're arguing, is silly. Warren Buffet is pretty rich and he's buying stocks not gold. John Paulson is pretty rich and he's buying real estate.

Now, back to my original question, where's the proof to back up your claim? Btw, I was in the Cayman's over Christmas and everyone I dealt with was more than happy to take my dollars and I saw no signs of anyone not willing to do the same.
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Old 05-24-2009, 10:21 AM
 
385 posts, read 778,637 times
Reputation: 80
I bought RYWBX. If the Dollar goes down 20%; it goes up 40%. Right now my target is
1.70 per Euro.
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Old 05-24-2009, 10:40 AM
 
Location: Castle Hills
1,054 posts, read 1,538,879 times
Reputation: 525
Quote:
Originally Posted by HappyTexan View Post
There were many and those guys were in the spotlight. The ones calling "doom" were called delusional and put down in public.

If you stay away from main stream media then you can read the true stories and opinions of what is going on.

Here's one of the sites I follow:
Financial News, Economic Education, Analysis & Data - FinancialSense.com

Lots of editorials by various professionals.
What I don't like about some of them is that they are hawking gold ..annoying plug for business.


Cool Website Happy. I just saved it to my favorites.
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Old 05-24-2009, 10:45 AM
 
12,360 posts, read 7,941,944 times
Reputation: 4092
Quote:
Originally Posted by Traderx View Post
But what proof do have that the rich are buying gold at a record pace? What you offered above is an opinion, not proof.

The dollar is higher than it was a year ago before all the bailing out and gold is about the same and oil is lower. And, since the stimulus money started being spent the stock market has gone up over 30%. Wouldn't that suggest the rich are buying stocks, not gold? And given that money market assets are still at all time highs wouldn't that suggest the rich are not doing anything?

My point is you make these bold aggressive statements of fact, but in truth they are nothing more than your shallow, uneducated and poorly thought out opinions.

Let's face it. You have no more idea of what the rich are doing than anyone else. On top of that, there are a lot of rich people and to think they're all doing the same thing, which is what you're arguing, is silly. Warren Buffet is pretty rich and he's buying stocks not gold. John Paulson is pretty rich and he's buying real estate.

Now, back to my original question, where's the proof to back up your claim? Btw, I was in the Cayman's over Christmas and everyone I dealt with was more than happy to take my dollars and I saw no signs of anyone not willing to do the same.


may i jump in here? it was a tough year for the world's richest man -- according to data from Forbes, Warren Buffett's net worth declined in value by a staggering $25 billion in 2008.
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Old 05-24-2009, 10:47 AM
 
975 posts, read 1,056,069 times
Reputation: 507
Quote:
Originally Posted by floridasandy View Post
It was a tough year for the world's richest man -- according to data from Forbes, Warren Buffett's net worth declined in value by a staggering $25 billion in 2008.
But I thought the rich were benefitting from all this at the expense of the little people???
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Old 05-24-2009, 10:56 AM
 
12,360 posts, read 7,941,944 times
Reputation: 4092
Quote:
Originally Posted by Traderx View Post
But I thought the rich were benefitting from all this at the expense of the little people???
i am just pointing out the fact that you said that even warren buffett was putting his faith in stocks, which actually wasn't working out so good for him......
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