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  • March 15, 2007 at 9:32 AM #8606
    LostCat
    Participant

    Talked to Chris yesterday and Chris said that WMC (GE Money) a subprime lender is going to lay even more people off. Chris found out that his/her job will be demoted.

    Chris told me that things are looking so ugly and the general public has no clue as to what is about to hit them.

    Chris explained that one of the companies executives explained to her/him the other day that he’d been through the 80’s, 90’s but nothing can even come close in to comparison to what is taking place right now and what he things is going to happen.

    WMC executives will have a new release today to discuss the state of the market (very very bad).. Short short short…

    March 15, 2007 at 9:58 AM #47732
    GoUSC
    Participant

    Yeah things are going to get a whole lot worse before better. There is absolutely no fiscal responsibility out there. I am worried because I work in RE Development (Retail). Obviously we are nervous in the short term (although our big projects are 2-4 years out before construction even begins). Regardless, there needs to be a come to jesus moment for this country so people can get back to a policy on fiscal responsibility. I am a Republican and don’t like big government but both Credit Card companies and mortgage lending companies have become so greedy and unethical that I believe there needs to be a serious look at how much the Government regulates these companies. Not to send the general public is not guilty here…they are just as much to blame. Sorry you can’t make $65k/yr and have a $700k home, BMW, Ford F350, Motorcycles, Boats, plasma’s, desert toys. It just doesn’t work.

    March 15, 2007 at 10:03 AM #47734
    kev374
    Participant

    well, all the corporate executives already made their millions now the common guy has to pay! This upcoming recession is going to be extremely painful. People will be walking away from their homes in droves, due to the zero down mortgages people have very little incentive to save their homes.

    March 15, 2007 at 10:09 AM #47735
    LostCat
    Participant

    Yeah, crazy times ahead. Does anyone think/believe that the coming years could resemble that of the great depression years?

    to me, it seems like things could get even worse. Now instead of just the stock market crash, we have energy problems, global war, no manufacturing jobs left in this country, limited resource, and a white house that has their head up their ass and thinks apologizing for their mistakes every two weeks is the way to get around their incompetence.

    My poor kids.

    March 15, 2007 at 10:12 AM #47736
    GoUSC
    Participant

    That’s the worst part…all the assh($es who headed companies like New Century, etc. knew what they were doing. At the end of the day they sold their stock options and walked away leaving the stock holders & the government (Fannie Mae & Freddie Mac) aka TAXPAYERS holding the bag.

    It really really pisses me off.

    March 15, 2007 at 10:15 AM #47737
    blahblahblah
    Participant

    I just finished reading this presentation by a Russian expat comparing the differences between the collapse of the Soviet Union and the (in his opinion, anyway) inevitable collapse of the US. For such a grim subject, it’s actually pretty entertaining reading and quite funny at times. He compares both systems, side by side — my favorite bit is the political comparison. The Soviet Union had the Communist Party. We have the Capitalist Party and The Other Capitalist Party. Not sure if I agree that we’re setting up for a complete collapse, but I do think we’re in for a few lean years before things start to improve…

    March 15, 2007 at 10:15 AM #47738
    GoUSC
    Participant

    LostCat,

    I don’t think the situation is that dire. Yes be have a completely incompetent president, yes we have lost manufacturing jobs, but I disagree on limited resources among other things. We are still a very very strong economy and even though China is growing at an amazing pace, 1.) it still pales in comparison to ours, 2.) it is so closely tied to us that if we slow down they will as well. True I think times might get tight over the next few years but we need that to correct the mistakes of past. I only hope that some fiscal responsibility is instilled on the part of the general populace and government.

    If it isn’t…my girlfriend and I are moving to Switzerland.

    March 15, 2007 at 10:40 AM #47741
    SHILOH
    Participant

    “That’s the worst part…all the assh($es who headed companies like New Century, etc. knew what they were doing. At the end of the day they sold their stock options and walked away leaving the stock holders & the government (Fannie Mae & Freddie Mac) aka TAXPAYERS holding the bag.”

    Agree – no one could be blindsighted by this –if they were an exec.

    May the various State AGs can find a way to prosecute them under some consumer protection or trade laws.

    March 15, 2007 at 10:43 AM #47742
    blahblahblah
    Participant

    If it isn’t…my girlfriend and I are moving to Switzerland.

    Is she Swiss or are you? If not, are one or both of you very wealthy? They don’t take kindly to auslanders there, unless they bring lots of money with them.

    March 15, 2007 at 10:58 AM #47745
    GoUSC
    Participant

    I’m an EU citizen, speak German, her mom is a big woopie-doo at UBS. And it was more a joke than anything… 🙂

    March 15, 2007 at 4:45 PM #47768
    kewp
    Participant

    Yeah, it will be terrible. All of us that spent our time getting educated and building stable careers will be able to buy cheap housing from bankrupt flippers and other equity chasers. Maybe if they clean up the house nice and give it a fresh coat of paint I’ll let them mow my lawn for minimum wage.

    March 15, 2007 at 7:10 PM #47771
    barnaby33
    Participant

    That is to say kewp, if you have a job.

    Josh

    March 15, 2007 at 7:43 PM #47773
    kewp
    Participant

    I’m a ward of the state, Josh!

    I lose my job and it means the state government is bankrupt. I’ll gladly leave California if that is ever the case.

    March 15, 2007 at 11:14 PM #47786
    garysears
    Participant

    Lostcat,

    I would love to short a subprime lender that is in trouble (actually buy puts) but I’m too late I think. There have been several big collapses already that I should have been in on but didn’t have the money ready. As far as I know, if you want to short WMC, you have to short GE as a company, which I don’t know about. Are there any remaining sole or mostly subprime lenders you can buy puts on directly?

    March 16, 2007 at 8:33 AM #47798
    LostCat
    Participant

    Garysears,

    Good question. I am not sure I would short GE, just yet. They do own everything and some areas I am sure are taking profits. Just the subprime company they bought, WMC, a year ago, is faultering. But word is they want to become an A lender. Not sure if that matters. However, when this subprime flounder starts to trickle into our economy, I am sure GE will take a hit because no one will be able to buy thier products.

    I was thinking of looking up HomeDepot products and start shorting evertyhing they sell. lol

    But then again, I am not financial consultant. So what the hell do I know. I just like reading the others input. And do believe that there will be meltdown far beyond that of just the housing market.

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