I haven't been in the money section in a while. Some good stuff to review in here.

But read this (http://blogs.marketwatch.com/fundmastery/2010/09/25/homes-a-pig-in-a-python/).

In spite of any commentary to the contrary, we're not out of the woods yet. All y'all, keep reading the finance sections of the paper or whatever online money news service you can and learn as much as you can. This way, you can see it for yourselves.

In other words, give yourself an education. You don't have to go to school to do it and you don't have to pay any serious money to do it. All ya gotta do is turn off your WoW, FB and GDC for a while and do some serious reading. Get online. Buy a couple of books. Learn how to insulate yourselves from the coming problems.

You'll be glad you did.

--Wag--

I like that in order to understand the title of the post, I had to read the article, very nice

Whatever works! :D

--Wag--

Knowledge is power! That chart really puts things in perspective.

It's regrettable that so many people really don't understand their own personal finances.

--Wag--

Don't believe everything you read about how bad the foreclosure "crisis" is:

http://www.trulia.com/blog/katie/2009/03/concentration_of_foreclo

Foreclosure statistics have not improved since this article was written, but they are still very localized.

I was hoping you poke your head in here, DF. You always have the most intelligent things to say.

True that the foreclosure crisis has not improved and worse, it is going to get worse. It's a certainty.

I read just yesterday the Fannie and Freddie are dumping foreclosed houses on the market for as much as 30% off and with very little down payment required. Of course, that will have the effect of depressing prices in any neighborhood in which they dump a few houses.

At least people need to qualify better but still, it's going to have an effect.

--Wag--

I agree that it's going to get worse. But my point was that it never got that bad in the first place, except in a select few counties. Vegas, L.A., Phoenix, Southern Florida, Michigan - take those gross offenders out and there's nothing unusual going on at all. And with the exception of Phoenix, there's not much hope that it's going to get better, simply because homes don't get sold because of the birth rate (population growth). They get sold because people are moving to an area from somewhere else due to economic advantages associated with doing so. Maybe people are waking up to how stupid going to a casino is, I dunno, but Vegas is on it's butt. Michigan is a prime example of what an economy looks like 20 years after you let liberals run it. South Florida had an economy seemingly based on an assumption of endless real estate appreciation - a HUGE percentage of their foreclosures are second homes and investment properties. Los Angeles started hemorrhaging it's smart, talented, high-producing citizens decades ago, leaving the listless, indolent, and unskilled behind to deal with crushing taxes, insane environmental rules, poor schools and the rest.

The rest of us took as hit - a normal corrective hit. Those communities are in for a long, tough, road which is to be travelled with a road map drawn by monkeys flinging their poo.

While it did start out localized in the areas you mentioned, it also spread out over a short period of time. Perhaps it was a local correction in some areas.

But still the kind of thing to pay attention to. If unemployment continues to be the problem it is, housing is going to take plenty more hits.

--Wag--

The story never ends.

http://blogs.wsj.com/developments/2010/10/05/housing-inventory-climbs-again-in-september/

If in fact the housing decline didn't hit every locale, it's about to.

--Wag--

Hyperinflation is on the way.

LBvCwuT0tBU

What is amazing to me at the moment are all the people who are starting to dump money into bonds. Are they stupid? You would have to believe that interest rates are going to be stable for the long term in order to start investing so heavily into bonds.

Because we KNOW interest rates are going to climb. They have no more downward room. We joke about negative interest but if that happens, load your guns and stay close to your food storage.

So, once interest rates start to climb, and we know that they will, bond values will drop like a stone. Money will be lost in a big way. AGAIN. Jeez.

The gamble here, though, is how long do people believe that A) interest rates are going to remain low and B) how long before the stock market really does take a shit?

Have any of these idiots ever heard of stop loss orders?

Holy Krist.

--Wag--

Well, you said it before, hard assets people, I think that's key to securing your future. However what I don't like ,if I'm not mistaken,what was buried in the ObamaCare legislation, Section 9006 (http://democrats.senate.gov/reform/patient-protection-affordable-care-act-as-passed.pdf) of the 2,409-page Patient Protection and Affordable Care Act. It becomes a law on November 2, 2010, is the new, absurd reporting requirement that businesses must file a 1099 tax form identifying anyone to whom they pay $600 or more for any product or service — INCLUDING GOLD.

The new law doesn’t cover only business-to-business transactions. It also applies to individuals who buy cars, appliances, and yes, even guns and gold coins. Sound like a semi-confiscation scheme? Confiscating, or taxing more of everyone’s wealth?

My favorite is the idea of the "flight to safety", where you get spooked by the scary, scary stock market and go running into municipal bonds or Treasury notes. Yeah, I know when I think "Competent Money Management", I always think first of government bureaucrats.

Everybody always does everything backwards in money. Right now people are spooked so they're heading for bonds, evidently oblivious to the meaning of the phrase "debt crisis". Why in the world someone would consider even muni bonds to be safe right now with the news literally awash in stories of states, cities, and municipalities that can't pay their bills is beyond me.

Well, you said it before, hard assets people, I think that's key to securing your future. However what I don't like ,if I'm not mistaken,what was buried in the ObamaCare legislation, Section 9006 (http://democrats.senate.gov/reform/patient-protection-affordable-care-act-as-passed.pdf) of the 2,409-page Patient Protection and Affordable Care Act. It becomes a law on November 2, 2010, is the new, absurd reporting requirement that businesses must file a 1099 tax form identifying anyone to whom they pay $600 or more for any product or service — INCLUDING GOLD.

The new law doesn’t cover only business-to-business transactions. It also applies to individuals who buy cars, appliances, and yes, even guns and gold coins. Sound like a semi-confiscation scheme? Confiscating, or taxing more of everyone’s wealth?

That is, indeed, a problem. To me, it sounds like a de facto registration system. If you bought a lot of precious metals and the gub'mint needs to know where it all is so they can confiscate it all, then this system provides a way to make that possible.

Remember the gold confiscation that happened way back in FDR's day? Yup. That kind of thing.

My favorite is the idea of the "flight to safety", where you get spooked by the scary, scary stock market and go running into municipal bonds or Treasury notes. Yeah, I know when I think "Competent Money Management", I always think first of government bureaucrats.

Everybody always does everything backwards in money. Right now people are spooked so they're heading for bonds, evidently oblivious to the meaning of the phrase "debt crisis". Why in the world someone would consider even muni bonds to be safe right now with the news literally awash in stories of states, cities, and municipalities that can't pay their bills is beyond me.

Hell, even the rapid runup of gold and silver is an issue. If you buy, buy carefully. If you buy gold and silver ETF's, set stop losses. I'm thinking in terms of the old adage, "When everyone else is buying, sell. When everyone else is selling, buy." Well, folks. People are buying right now. Be selling or be ready to sell at the least provocation.

--Wag--

A big risk, no absolute safety
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^haha

I'm actually looking into purchasing a nice large house with in the next 9 months. Hopefully I will have some people that i know hook me up with a great price on a home that has been siting on the market for a lil while.

Even though i do feel slightly wrong for benefiting from somones loss!

but anyhow... i hope to find a great deal bc I have not had the best luck in the world in the past.

^haha

I'm actually looking into purchasing a nice large house with in the next 9 months. Hopefully I will have some people that i know hook me up with a great price on a home that has been siting on the market for a lil while.

Even though i do feel slightly wrong for benefiting from somones loss!

but anyhow... i hope to find a great deal bc I have not had the best luck in the world in the past.

Um, that's what capitalism is all about! When someone does something stupid, take advantage of their stupidity.

:D

Sorry, couldn't resist.

Actually, blatant exploitation is not exactly cool, however, when some deal pops up, take it.

Above all, do your homework. There are a ton of things to watch for.

Mold. Chinese drywall. Problems with foreclosed homes. People trying to hide problems from you. Finance moguls trying to screw you for another point in interest or up front fees.

Git 'r' done, though.

Good luck. It's a good time to buy, in my never-to-be-humble opinion and you probably have some time but keep a close eye on interest rates. They could drop a bit more but they could also start heading up if the Fed starts to dick with it again.

--Wag--

Anyone else see this? http://www.marketwatch.com/story/fed-buys-519-billion-in-treasurys-2010-10-05

Who's "money" did they "buy" them with?

It's a (loan) Fed bailout of the U.S. government because of their hunger for more cash. Note that just because it's called the "Federal Reserve" does not mean it has anything to do with the federal government. It does not. The Federal Reserve is a private bank with a ton of money which they then loan to the U.S. government (that's us) with interest charges attached.

However, the U.S. government (that's us) has to pay interest on that loan.

Quote from one of the comments:

This makes me feel sick to my stomach. They want to drive the dollar into zero - and the average citizen is oblivious. In about a week the Fed will own more Treasuries than China will (check the numbers). The amazing thing is this fraud is going on right in front of everyone's noses. Only choice now is precious metals. --Chaps

It's not the Fed that's in debt. It's the U.S. government (that's us) that is in debt to the Fed. They own our asses already and most of the people in the country don't even know it.

Buy hard assets, people. Even raw land. Precious metals are critical too.

--Wag--

Exactly, it's the "PRIVATE" Federal Reserve. END THE FED!!! So all those who doubt the Fed has an impact on stocks, today is the day the Fed will likely overtake Japan as the second largest holder of US Treasurys.

http://img683.imageshack.us/img683/1258/bankonit20852323.jpg

http://www.bloomberg.com/news/2010-10-06/jpmorgan-bank-of-america-face-hydra-of-state-foreclosure-investigations.html And http://www.reuters.com/article/idUSTRE6955YX20101006?pageNumber=1 I found this interesting....

If this whole mess is really pursued, it's going to get ugly, because I have no doubt if the mortgages are challenged, there will be a ton of mortgages that will be found to not have been transfered legally, and thus the servicer trying to foreclose will lose the note altogether.

The upside is that alot of homeowners will end up with a home with no mortgage and clear title that thought they were going to lose their house.

If this whole mess is really pursued, it's going to get ugly, because I have no doubt if the mortgages are challenged, there will be a ton of mortgages that will be found to not have been transfered legally, and thus the servicer trying to foreclose will lose the note altogether.

The upside is that alot of homeowners will end up with a home with no mortgage and clear title that thought they were going to lose their house.

There have been plenty of mortgages challenged in exactly this way. The lender can't produce the paperwork so they can't foreclose. Even going to the country recorder often shows only the original paperwork, not the 15 times the loan got bundled, securitized and resold so: No paperwork.

I'm not sure how the "clear title" would pass to the borrower, however. Most likely, future title searches would show an encumbrance or impairment of some kind and the homeowner won't be able to sell the house. Eventually, it will catch up to the homeowner.

--Wag--

There have been plenty of mortgages challenged in exactly this way. The lender can't produce the paperwork so they can't foreclose. Even going to the country recorder often shows only the original paperwork, not the 15 times the loan got bundled, securitized and resold so: No paperwork.


I'm not sure how the "clear title" would pass to the borrower, however. Most likely, future title searches would show an encumbrance or impairment of some kind and the homeowner won't be able to sell the house. Eventually, it will catch up to the homeowner.

--Wag--

Your prolly right.:dunno

I don't know about you but I am noticing lately a lot of troubling financial movements . It seems the world economy is actually decoupling (http://www.bloomberg.com/news/2010-10-03/world-economy-decoupling-from-u-s-in-slowdown-returns-as-wall-street-view.html)from the U.S. thus fleeing the sinking ship if you will.

Back on october 1st we see some unusually high option volume which shows an unusual .15 yield on treasury bonds.here (http://www.schaeffersresearch.com/streetools/market_tools/unusually_high_option_volume.aspx)

The S&P traders have jumped on board as well here's the video showing massive put options on the S&P for October.

London is also looking like they're on the cusp of a second banking failure (http://news.sky.com/skynews/Home/Business/Banks-Facing-Second-Credit-Crunch-New-Economics-Foundation-Report-Says-Banking-System-Set-To-Fail/Article/201010115750551?lpos=Business_First_UK_News_Articl e_Teaser_Region_0&lid=ARTICLE_15750551_Banks_Facing_Second_Credit_Cr unch%3A_New_Economics_Foundation_Report_Says_Banki ng_System_Set_To_Fail).

I'm not sure if all these are the start of something big happening or not but I feel it can only be bad. :dunno but does anyone else see a major stock market crash taking place soon?

Sorry if it's a little unrelated to your original post, I just figured I would put it here instead of starting a new thread.

If you really think that, sell your motorcycle(s) and buy guns.

--Wag--