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  • February 27, 2008 at 10:50 AM #161199
    kewp
    Participant

    Uh, gold is supposed to be about the most conservative investment there is and its gone up 300% since 2000.

    Using extreme leverage is *always* very risky. And yes, if you make a good play you can multiply your earnings many-fold. But consider that every foreclosure or bankruptcy is an example of leverage going the other way.

    In a deflationary environment, people with cash/income, no debt and no assets will be rewarded.

    Crashing home prices, banks failing, AAA bonds becoming worthless, this is all game changing.

    February 27, 2008 at 11:38 AM #160832
    barnaby33
    Participant

    coop, Helicopter Boy can only lower rates 3 more basis points; I think you meant 300 basis points, or 3%. The FED doesn’t set interest rates. It follows credit demand. All Bernanke is saying is that nobody has any collateral that banks will lend against at this point.

    Rustico, there are lots of reasons why thats a dangerous ploy. For one CC rates aren’t fixed and can be changed at any time for almost any reason. Two high interest rates on loans and lower prices are a win for first time buyers and those with large down payments (savers). The FED can lower interest rates all it wants at this point, mortgage rates will go up to compensate for risk past and future. Long term obligations should if possible be financed with long term debt. If not you are playing arbitrage, which is just a fancy word for gambling.

    Ultimately JWM has it right. House prices are going to continue to decline for the next few years and if you buy now, even at a low interest rate, you are a sucker.

    Josh

    February 27, 2008 at 11:38 AM #161125
    barnaby33
    Participant

    coop, Helicopter Boy can only lower rates 3 more basis points; I think you meant 300 basis points, or 3%. The FED doesn’t set interest rates. It follows credit demand. All Bernanke is saying is that nobody has any collateral that banks will lend against at this point.

    Rustico, there are lots of reasons why thats a dangerous ploy. For one CC rates aren’t fixed and can be changed at any time for almost any reason. Two high interest rates on loans and lower prices are a win for first time buyers and those with large down payments (savers). The FED can lower interest rates all it wants at this point, mortgage rates will go up to compensate for risk past and future. Long term obligations should if possible be financed with long term debt. If not you are playing arbitrage, which is just a fancy word for gambling.

    Ultimately JWM has it right. House prices are going to continue to decline for the next few years and if you buy now, even at a low interest rate, you are a sucker.

    Josh

    February 27, 2008 at 11:38 AM #161142
    barnaby33
    Participant

    coop, Helicopter Boy can only lower rates 3 more basis points; I think you meant 300 basis points, or 3%. The FED doesn’t set interest rates. It follows credit demand. All Bernanke is saying is that nobody has any collateral that banks will lend against at this point.

    Rustico, there are lots of reasons why thats a dangerous ploy. For one CC rates aren’t fixed and can be changed at any time for almost any reason. Two high interest rates on loans and lower prices are a win for first time buyers and those with large down payments (savers). The FED can lower interest rates all it wants at this point, mortgage rates will go up to compensate for risk past and future. Long term obligations should if possible be financed with long term debt. If not you are playing arbitrage, which is just a fancy word for gambling.

    Ultimately JWM has it right. House prices are going to continue to decline for the next few years and if you buy now, even at a low interest rate, you are a sucker.

    Josh

    February 27, 2008 at 11:38 AM #161160
    barnaby33
    Participant

    coop, Helicopter Boy can only lower rates 3 more basis points; I think you meant 300 basis points, or 3%. The FED doesn’t set interest rates. It follows credit demand. All Bernanke is saying is that nobody has any collateral that banks will lend against at this point.

    Rustico, there are lots of reasons why thats a dangerous ploy. For one CC rates aren’t fixed and can be changed at any time for almost any reason. Two high interest rates on loans and lower prices are a win for first time buyers and those with large down payments (savers). The FED can lower interest rates all it wants at this point, mortgage rates will go up to compensate for risk past and future. Long term obligations should if possible be financed with long term debt. If not you are playing arbitrage, which is just a fancy word for gambling.

    Ultimately JWM has it right. House prices are going to continue to decline for the next few years and if you buy now, even at a low interest rate, you are a sucker.

    Josh

    February 27, 2008 at 11:38 AM #161229
    barnaby33
    Participant

    coop, Helicopter Boy can only lower rates 3 more basis points; I think you meant 300 basis points, or 3%. The FED doesn’t set interest rates. It follows credit demand. All Bernanke is saying is that nobody has any collateral that banks will lend against at this point.

    Rustico, there are lots of reasons why thats a dangerous ploy. For one CC rates aren’t fixed and can be changed at any time for almost any reason. Two high interest rates on loans and lower prices are a win for first time buyers and those with large down payments (savers). The FED can lower interest rates all it wants at this point, mortgage rates will go up to compensate for risk past and future. Long term obligations should if possible be financed with long term debt. If not you are playing arbitrage, which is just a fancy word for gambling.

    Ultimately JWM has it right. House prices are going to continue to decline for the next few years and if you buy now, even at a low interest rate, you are a sucker.

    Josh

    February 27, 2008 at 12:01 PM #160847
    NotCranky
    Participant

    “Rustico, there are lots of reasons why thats a dangerous ploy.”

    You must really miss me Josh? I was not even on the thread up until now.LOL. Now I am off…Have a nice day you all!

    February 27, 2008 at 12:01 PM #161140
    NotCranky
    Participant

    “Rustico, there are lots of reasons why thats a dangerous ploy.”

    You must really miss me Josh? I was not even on the thread up until now.LOL. Now I am off…Have a nice day you all!

    February 27, 2008 at 12:01 PM #161157
    NotCranky
    Participant

    “Rustico, there are lots of reasons why thats a dangerous ploy.”

    You must really miss me Josh? I was not even on the thread up until now.LOL. Now I am off…Have a nice day you all!

    February 27, 2008 at 12:01 PM #161175
    NotCranky
    Participant

    “Rustico, there are lots of reasons why thats a dangerous ploy.”

    You must really miss me Josh? I was not even on the thread up until now.LOL. Now I am off…Have a nice day you all!

    February 27, 2008 at 12:01 PM #161244
    NotCranky
    Participant

    “Rustico, there are lots of reasons why thats a dangerous ploy.”

    You must really miss me Josh? I was not even on the thread up until now.LOL. Now I am off…Have a nice day you all!

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