San Diego Housing Bubble News and Analysis

JWM in SD

Yep, we've gone down the rabbit hole at this point and a lot people are still clueless about it although that is changing rather quickly.

Folks, here is the deal. We (RE bubble bloggers, savers, financially prudent) are all engaged in a game of Economic Chicken. Yeah, I know, it's a very elementary and pedantic way of putting it, but I think it is appropriate. The other side of this is the The Powers That Be (Risk Loves, Uber Wealthy, Politicians, Clueless Masses). In their corner, they have power over policy and we have logic and faith in economic theory that has borne out over many hundreds of years surrounding fundamentally sound monetary policies and investment theory....I.E., the belief that at some point the fundamentals have to take hold in this whole mess with the primary question surrounding the fall out and degree of collateral damage (job losses, lack of purchasing power, all of the above). No one is going to emerge unscathed from this unfortunately.

We need to consolidate our knowledge in a more concerted effort to determine the best way to mitigate the inevitable damage that will done regardless of who wins the game of chicken.

What are your thoughts?????

Huh ?

WHat ?

Sorry I fell asleep exactly one year ago today (3/19/07) and just woke up. The Dow closed at 12296 that day. Where are stock prices now ? I see, the Dow closed at 12,392. What are you talking about ?

Stocks fluctuate.

Fed injected 200 billion dollars last Tuesday. The stock went up few hundred points. By Friday, one of the largest investment bank went pretty much belly up. Now, Fed cut the key interest rate to 2.25%. You shouldn't be mad. You should ask who is next :)? Btw, personally, I believe the big down turn will be at least after April or May. So what's the hurry.

When bears lose money in a bear market, it's a nice object lesson for the future.

They're running out of band-aids. The illness with the economy goes too deep.......... and sooner (not later), there's going to be a huge drop in the Dow Jones. Will Bernanke cut the rate all the way to zero? That may delay the crash a little longer but it will eventually crash........BIG!

JWM, you asked what are our thoughts?

My thoughts:

Be aware of the current economic reality, but do not react to it. Instead, remember that I am the creator of my reality and that I can manifest whatever I wish.

Slow down and listen, really listen to the truth of what is happening in the drama that is unfolding. Be an observer of that drama but not a participant.

Enjoy my life. Be in nature as much as possible, connected to the rhythm of this planet. Be with those I love.

Shine a light for those who wish to see and awaken as well.

Celebrate the shift.

Engage the stupids and profit off them. Hey I'll admit I got burned some today, but then again I said I wasn't greedy, so I sold off a lot of my shorts/puts yesterday.

My thought is to wait till this 1-2 week upswing has played out then load back up for the ride down. Each time being careful not to be too greedy.

My goal is to make money while others are losing it. Primarily as proof that I wasn't crazy, but also because I'm probably going to end up losing my job and I'd better have a cash bulwark.

Josh

Ex-SD or someone needs to explain how Bernanke cutting the rate is going to help. Didn't Japan go through this very same thing in the not too distant pass? I am surprised by the stocks today and sold some, even though ended up closing higher. I ended up breaking even from the downslide. The overall picture still doesn't look good. Can't imagine this recent rally b/c of rate cuts be anything that will be long-lasting.

OT- 7 arrests today 20 million in bait and switch scam in realtor mortgage fraud in L.A.

Engage the stupids and profit off them. Hey I'll admit I got burned some today, but then again I said I wasn't greedy, so I sold off a lot of my shorts/puts yesterday.

My thought is to wait till this 1-2 week upswing has played out then load back up for the ride down. Each time being careful not to be too greedy.

Now there's a sensible bear. One whose paws have been burned in the past (I can sympathize, FWIW.)

As a short idea (or maybe another paw-scorching idea,) I think the much beloved "big cap industrials" will soon see an earnings squeeze, thanks to the actions of the Fed in providing a nice tailwind to the current inferno in PPI prices. That's probably an idea for next quarter's earnings, though.

Some other things I have thought about while out and about today.

Play nicely with others. If someone needs to pull out ahead of me, well I let them. If someone looks at me, I smile and say "hi". If I notice someone needs something I offer to help in whatever way I am able.

Be generous with your time, love, money, belongings. What you put out there very definitely returns.

Shop small and local. I bought produce today from a sweet, little produce shop. I shop at the farmer's markets.

Everything above takes time, I know. But when you slow down and start to live from a place of joy, you find you have all the time in the world.

One other thing, well for now at least. And yes I know that I am talking to myself.

Is anyone here watching "Jericho" on tv? It is a fascinating and intense tale of the corporate take over of America. I think many people are watching thinking that the show portrays what could happen here, I think there are few watching who understand the show is portraying much of what has already happened here.

It's really sad when the responsible people in this country are punished. The government simply doesn't want us to save. Spend, spend, spend. Makes me sick to see the direction this once great country is headed. Someone tell me, how can one single person in government (Bernanke) have so much power to do essentially anything he wants? I try to act responsibly, save as much as I can, yet all my money is being eaten away by raging inflation which the government denies. Add to that the dollar going in the toilet, and what do you have? Stock market rally! Shameful.

The stock market rally is indicative of the amount of delusion permeating the masses. Obviously it will be short lived.

"It's really sad when the responsible people in this country are punished."

The punishment is an unintended or intended consequence of the marriage of government and corporations. This systemic problem, that is only getting worse, seems to have accelerated in recent years. The corruption is so overt at this point that most of us accept it as normal or write is off as stupidity. One of these days we will learn that the people we elect to office, on either side of the aisle, are not working for our best interest but the interest of a select few. Unfortunately, I think all of our nations wealth will be sucked dry before we realize what happened. It's a parasitic economic-political model that is bound leave us impoverished.

During the housing bubble run up, every institution, including the fed, media and government were encouraging and praising the poor behavior. Mass delusion, or sinister plan?

Put another way, the global decision makers, international planners, financial institutions, political parties, media conglomerates, corporations, banks, a hegemonic, accumulative bloc working in concert to coordinate the extraction of wealth from first and third world alike. A series of privately held international institutions to which and from which money can be moved to leverage nations and populations according to their needs is probably gonna do just that because they can.

Anyway, put me in the ranks of the babbling paranoid until I see evidence to the contrary.

I'm responsible and I'm being rewarded at the moment.

It all depends on your POV and where you decide to store your assets. For example, I don't consider saving US dollars as very responsible.

What is up with the Nikkei?

All I can see on Bloomberg and CNN is yesterday's trading.

The Nikkei is open on the 20th already, right?

Am I missing something?