- This topic has 137 replies, 23 voices, and was last updated 16 years, 4 months ago by
latesummer2008.
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May 19, 2007 at 7:18 AM #9123May 19, 2007 at 8:24 AM #53798
NeetaT
ParticipantI have no debt and I am sitting on cash, so how will I benefit?
May 19, 2007 at 8:24 AM #53809ParticipantI have no debt and I am sitting on cash, so how will I benefit?
May 19, 2007 at 8:31 AM #53802latesummer2008
ParticipantYou will be holding all the cards, when this credit debacle finally hits bottom. Banks will be drooling over you, compared to the pool of clients, they have to work worth.
Result:
1) Best Interest Rate
2) Strongest Bargaining Power
3) CHOICE of Discounted PropertiesDiamond in the Rough, Keep your nose clean and you will be rewarded… (Late Summer 2008…)
May 19, 2007 at 8:31 AM #53813ParticipantYou will be holding all the cards, when this credit debacle finally hits bottom. Banks will be drooling over you, compared to the pool of clients, they have to work worth.
Result:
1) Best Interest Rate
2) Strongest Bargaining Power
3) CHOICE of Discounted PropertiesDiamond in the Rough, Keep your nose clean and you will be rewarded… (Late Summer 2008…)
May 19, 2007 at 8:54 AM #53806Raybyrnes
ParticipantGreat Credit will benefit because banks base portfolios and reserves on the average credit of the overall portfolio. They are willing to give money away to people with great credit so that they can make riskier and more profitable loasn to those with more marginal credit. This is one of the reasons that credit card companies benefit from the 0% client. 1 they make money from the merchant procesing fees but 2 they are able to offer higher interest rate cards to borrowers while maintaining a respectable avaerage risk for their portfolio. Some have compared this strategy to a barbell.
May 19, 2007 at 8:54 AM #53817ParticipantGreat Credit will benefit because banks base portfolios and reserves on the average credit of the overall portfolio. They are willing to give money away to people with great credit so that they can make riskier and more profitable loasn to those with more marginal credit. This is one of the reasons that credit card companies benefit from the 0% client. 1 they make money from the merchant procesing fees but 2 they are able to offer higher interest rate cards to borrowers while maintaining a respectable avaerage risk for their portfolio. Some have compared this strategy to a barbell.
May 19, 2007 at 11:09 AM #53826ParticipantDon’t forget, Cash is King. Always is, Always has, Always will be. Save as much as you can, while everyone else is spinning their wheels, trying to service their debt.
When the buying opportunity presents itself, you will be sitting in the catbird seat.
May 19, 2007 at 11:09 AM #53837ParticipantDon’t forget, Cash is King. Always is, Always has, Always will be. Save as much as you can, while everyone else is spinning their wheels, trying to service their debt.
When the buying opportunity presents itself, you will be sitting in the catbird seat.
May 19, 2007 at 11:25 AM #53832bayparkwatcher
ParticipantI am more frightened by the stock market. I know there’s been some discussion on here about how wacky it is compared to the declining housing market. I am the trustee for a relative whose stock portfolio has zoomed to over $500K in recent months. I think it’s too risky and I want out. But capital gains taxes will be HUGE. Any advice gratefully accepted,
May 19, 2007 at 11:25 AM #53843ParticipantI am more frightened by the stock market. I know there’s been some discussion on here about how wacky it is compared to the declining housing market. I am the trustee for a relative whose stock portfolio has zoomed to over $500K in recent months. I think it’s too risky and I want out. But capital gains taxes will be HUGE. Any advice gratefully accepted,
May 19, 2007 at 11:50 AM #53836LA_Renter
ParticipantYou can always lay some puts on the stocks they are invested in. In the event of a downturn this will hedge any losses. That way you don’t have to sell the stocks and take a tax hit. Keep in mind these will also be a drag on that portfolio in the event they go higher but it does act as an insurance policy. There are also some bear market funds you can play that are attached to the Dow, S&P and Nasdaq. I have to admit the market is tricky right now. There is a lot of momentum to the upside and at the same time we are in a housing bust and a lot of concrete evidence the economy is slowing down. One main reason for this is that the Global market is strong and that is playing well with US Companies with strong international business. This is only way to look at it. Some people like to play Bonds as a hedge.
May 19, 2007 at 11:50 AM #53847ParticipantYou can always lay some puts on the stocks they are invested in. In the event of a downturn this will hedge any losses. That way you don’t have to sell the stocks and take a tax hit. Keep in mind these will also be a drag on that portfolio in the event they go higher but it does act as an insurance policy. There are also some bear market funds you can play that are attached to the Dow, S&P and Nasdaq. I have to admit the market is tricky right now. There is a lot of momentum to the upside and at the same time we are in a housing bust and a lot of concrete evidence the economy is slowing down. One main reason for this is that the Global market is strong and that is playing well with US Companies with strong international business. This is only way to look at it. Some people like to play Bonds as a hedge.
May 19, 2007 at 11:55 AM #53838ParticipantL.A. renter–thanks for the good advice.
It’s hindsight, of course, but I should have sold it all back in 2000, when I became trustee, and bought an investment property. 🙁
May 19, 2007 at 11:55 AM #53849ParticipantL.A. renter–thanks for the good advice.
It’s hindsight, of course, but I should have sold it all back in 2000, when I became trustee, and bought an investment property. 🙁
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