The economy, is it good or bad. (Page 24/181)
Toddster AUG 11, 11:56 AM

quote
Originally posted by Formula88:

Ben Stein says the economy is doing fine. Honestly, I probably trust his judgment on the condition of the economy more than just about anyone else in the news.

"The U.S. mortgage market is immensely large, spectacularly large. Total foreclosures are a large amount in dollar terms, but a tiny amount in percentage terms. Foreclosures are now about 1 percent of loans. The lenders will sell the houses and recover at least fifty per cent of the value. That means the total loss may be about ½ of one percent of the mortgages made and probably less, and a lot of it is insured. This is an absolutely trivial number in the context of a $14 trillion economy with net wealth in the realm of $60 trillion."
...
"The most cagey players on Wall Street like Goldman Sachs are now trying to buy — not sell — as much distressed merchandise in the mortgage area as they can. This is a good clue about where the smart money is going."

Video of Ben Stein on the housing market.



EXACTLY! I like Ben too. I have been telling my cleints that THIS is the time to take advantage of the hysteria and BUY! There are great housing deals out there. I have an associate ho has a listing for $925,000 that they are willing to take less on. They paid $1,250,000 for the house 2 yeatrs ago when the house was first built. It is INSTANT wealth for the right buyer. This market will turn up again soon and someone is going to make a killing.

Ironically, its doomsayers like 84Fiero123 and others ignorant of the mechanics of markets that actually HELP make the rich richer. Because the rich don't panic and they know when to zig while others are zagging.
84Bill AUG 11, 12:23 PM

quote
Originally posted by Toddster:
EXACTLY! I like Ben too. I have been telling my cleints that THIS is the time to take advantage of the hysteria and BUY! There are great housing deals out there. I have an associate ho has a listing for $925,000 that they are willing to take less on. They paid $1,250,000 for the house 2 yeatrs ago when the house was first built. It is INSTANT wealth for the right buyer. This market will turn up again soon and someone is going to make a killing.



I like Henry David Thoreau but that doesnt mean that everything he said was true, I'm sure he had quite a few detractors then as well as now but I believe some of his statements were right on the money...

Anywho
Last time I checked housing upsndowns seemed to run in roughly 20 year cycles.


quote

Ironically, its doomsayers like 84Fiero123 and others ignorant of the mechanics of markets that actually HELP make the rich richer. Because the rich don't panic and they know when to zig while others are zagging.



The rich can afford to not panic, they have money to burn lighting ciggars which is why the rich get richer while the poor get poorer

[This message has been edited by 84Bill (edited 08-11-2007).]

Toddster AUG 11, 12:29 PM

quote
Originally posted by 84Bill:


The rich can afford to not panic, they have money to burn lighting ciggars {cigars} which is why the rich get richer while the poor get poorer




Ah, of course, the rich didn't get rich by having cool heads. They have cool heads because they are rich.

[This message has been edited by Toddster (edited 08-11-2007).]

pokeyfiero AUG 11, 12:50 PM

quote
Originally posted by Toddster:


Ah, of course, the rich didn't get rich by having cool heads. They have cool heads because they are rich.





That has always befuddled me.
Toddster AUG 11, 01:04 PM

quote
Originally posted by pokeyfiero:

That has always befuddled me.



Yeah, but don't ask him how the rich got rich in the first place. I don't think I could bear the tyraid of accussations of theft, luck, lottery winnings, and inheritance I'd have to endure.
84Bill AUG 11, 01:10 PM

quote
Originally posted by Kloddster:
Ah, of course, the rich didn't get rich by having cool heads.



This is not what I was discussing.

My statement was "The rich can afford to not panic, they have money to burn lighting ciggars which is why the rich get richer while the poor get poorer."

I'm not debating your statement that now is the time to buy, but IF you have the spare coin to do so. Ya cant loose when prices drop.. However if one can not afford to bust that montly nut then now is not the time to buy.. I mean like Duhh.. it's not rocket science.

The poor man cant afford to play even though the poor man has the honor of paying to play the game, and has a greater chance of loosing to the wealthy man who will snap up the poor mans losses.

[This message has been edited by 84Bill (edited 08-11-2007).]

84Bill AUG 11, 01:24 PM

quote
Originally posted by pokeyfiero:
That has always befuddled me.



It apears to be something akin to political humor.
Toddster AUG 11, 01:30 PM

quote
Originally posted by 84Bill:


I'm not debating your statement that now is the time to buy, but IF you have the spare coin to do so. Ya cant loose when prices drop.. However if one can not afford to bust that montly nut then now is not the time to buy.. I mean like Duhh.. it's not rocket science.

The poor man cant afford to play even though the poor man has the honor of paying to play the game, and has a greater chance of loosing to the wealthy man who will snap up the poor mans losses.





This is 100% wrong. Sorry Bill but when is that last time you paid cash for a house? The concept of OPM (Other People's Money) is how you get rich. If you have good credit, good knowledge, and a cool head you do not need to be Nelson Rockfeller to do well.
84Bill AUG 11, 01:45 PM

quote
Originally posted by Toddster:
This is 100% wrong. Sorry Bill but when is that last time you paid cash for a house?



Me personally? Nonya biz.


quote

The concept of OPM (Other People's Money) is how you get rich. If you have good credit, good knowledge, and a cool head you do not need to be Nelson Rockfeller to do well.



Right.. the poor man (in this case "OP") buys an overly priced POS house sold by a turd with a junk mortgage then when the poor man (again refered to as "OP") has to sell it at fire sale price because the poor man can no longer make that montly nut which means the wealthy man can buy much more effortlessly regardless of market conditions thus making the poor mans investemnt (or as you refer to as the "M") the it wealthy mans investment (again refered to as "M") when he sells it after the market turns.

The rich man can remain cool under the "harshest" of conditions because he can AFFORD TO. The wealth get wealthier.
The poor man just gets left paying the bill.... and gets poorer.

Again this is not rocket science.
Phranc AUG 11, 01:57 PM

quote
Originally posted by 84Bill:
Me personally? Nonya biz.



In other words you haven't.