commercial mortage backed securties... holy hell hang on!
- Thread starter MTm7
- Start date
O
Ollie
ACCOUNT CLOSED
yep, that is the next train wreck.
It is one of the things holding up the stock market right now.
I don't understand how the stock market can be above 8,000, there is nothing really supporting it and when comercial real estate crashing, I don't know where the bottom will be.
Stand by, this will be Bush's fault also and will require a trillion dollar bailout.
It is one of the things holding up the stock market right now.
I don't understand how the stock market can be above 8,000, there is nothing really supporting it and when comercial real estate crashing, I don't know where the bottom will be.
Stand by, this will be Bush's fault also and will require a trillion dollar bailout.
I was looking into the currency exchange at Wells Fargo's website today. I hate to even consider this but gonna start trading dollars for Juan. There's no way the Chinese will be able to leave it at 6.7 to 1. I wouldn't be surprised if it went to pare in the next few years.
Stocks seem to only represent "anticipated" performance. They have not been reflective of long term company performance in a while.
If they take it off of the ratio, they would be loosing money in comparison to the US. $100k of US is equal to 670k Juan. If it goes to parity, then 100k of US would be equal to only 100k Juan. They would loose out 570k Juan. Though, I guess it depends more upon what the Juan is trading at compared to everyone else.
Interesting.
The biggest reason for our trade imbalance is China keeps their currency artificially low. If it wasn't restricted it would have appreciated substantially in the last few years and the cost of their exports would have to rose closer to parity with other free market goods. China has screwed themselves and I hope they get theirs for taking manufacturing jobs from every corner of the globe.
Remember this is from Barrys buddy http://www.prisonplanet.com/soros-china-will-lead-new-world-order.html
My dad was in China for a couple of weeks. Mom and sis were buying things (what a shock) and they kept on nudging him to buy something. He ended up buying something. When he looked closer at it, it said "Made in Korea". lol. There is always somewhere cheaper it seems.
This is exactly what I have been saying is going to happen. I see people buying new sleds and spending money on things beyond the necessities of life because they actually believe their income is recession proof.
Well, here's a news flash....we are all living on artificial income and assets. The money generated from both residential real estate sales and commercial real estate sales rather it's building, trading, or lending is the money funding every raise you have gotten in the past 20 years. Everybody points a finger to bad lending practices, but fails to realize that the money generated from these bad practices have funded our pay checks, and every aspect of our economy for the past 20 years. Lending for residential real estate is down 70% in 2009. Lending for commercial real estate is down 82% in 2009. Wait until this cash flow disappears out of the economy. I expect this to start happening at an accelerated rate in the next three months. It doesn't matter where you work, or who funds your pay check, self employed or W'2 wage earner, retired with a private pension, retired with a government pension. The money is drying up and every business in the world including government is going to feel it at about the same rate as real estate sales have fallen. That's a reduction in the economic cash flow of 76%. What's going to happen when your employer finds out business income is down 76%? How are you as a business owner going to sell products or services when W'2 wage earners have their pay checks cut 76%?
If we don't find a way to stimulate the sale of real estate in the next 3 to 6 months, and I mean way beyond the first time home buyer credit, I can't see how the economy can survive. That's why the Fed's are keeping rates low. The problem is the economy is dependant on the income generated from the bad lending practices which stopped cold turkey about a year ago. Regardless of how low rates are, we need the income generated from bad lending to feed our addiction. Only a small portion of the public qualify to borrow at these low rates, and most of them are smart enough to see what's happening and not stupid enough to borrow or invest the cash they have in real estate. Every dollar ever made in this country eventually goes back to the buying and selling of real estate. Even the government is powerless to fund the economy once this cash has completely cycled through with no way to regenerate because 76% of our ability to get it is gone.
Well, here's a news flash....we are all living on artificial income and assets. The money generated from both residential real estate sales and commercial real estate sales rather it's building, trading, or lending is the money funding every raise you have gotten in the past 20 years. Everybody points a finger to bad lending practices, but fails to realize that the money generated from these bad practices have funded our pay checks, and every aspect of our economy for the past 20 years. Lending for residential real estate is down 70% in 2009. Lending for commercial real estate is down 82% in 2009. Wait until this cash flow disappears out of the economy. I expect this to start happening at an accelerated rate in the next three months. It doesn't matter where you work, or who funds your pay check, self employed or W'2 wage earner, retired with a private pension, retired with a government pension. The money is drying up and every business in the world including government is going to feel it at about the same rate as real estate sales have fallen. That's a reduction in the economic cash flow of 76%. What's going to happen when your employer finds out business income is down 76%? How are you as a business owner going to sell products or services when W'2 wage earners have their pay checks cut 76%?
If we don't find a way to stimulate the sale of real estate in the next 3 to 6 months, and I mean way beyond the first time home buyer credit, I can't see how the economy can survive. That's why the Fed's are keeping rates low. The problem is the economy is dependant on the income generated from the bad lending practices which stopped cold turkey about a year ago. Regardless of how low rates are, we need the income generated from bad lending to feed our addiction. Only a small portion of the public qualify to borrow at these low rates, and most of them are smart enough to see what's happening and not stupid enough to borrow or invest the cash they have in real estate. Every dollar ever made in this country eventually goes back to the buying and selling of real estate. Even the government is powerless to fund the economy once this cash has completely cycled through with no way to regenerate because 76% of our ability to get it is gone.
O
Ollie
ACCOUNT CLOSED
I'll disagree with that.
If we don't find a way to re-invigerate our industrial base, we are NEVER going to get back on our feet in any kind of long term sustainable way.
Realestate is only as expensive as people can afford to buy it.
If there is no money, realestate is worthless.
If we don't find a way to re-invigerate our industrial base, we are NEVER going to get back on our feet in any kind of long term sustainable way.
Realestate is only as expensive as people can afford to buy it.
If there is no money, realestate is worthless.
Or a large percentage of people become renters... That is a scary scary thought.
Now there is a idea! How about the mortgage holders rent back to the people whom just had their home foreclosed?
Oh thats right its already coming
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