Of Oil and Houses

[bearishgurl]

That’s a good point, Eugene. I DO think there is a high percentage of vacancies in very distressed parts of the country, such as Detroit, MI. However, many, many people have vacation homes which are never rented and always left furnished with supplies for family and friends to visit. I believe the bulk of vacation homes nationwide are owned free and clear. Whenever I visit certain lakes in the southwest part of the country in the summer, I see many vacant homes, some with private boathouses and quite a few are over 2500 sf with multiple garages. The lawn is mowed and all is well.

The same is true of homes here in SD county which are owned by persons living in other countries (such as Mexico). Many are “vacant” with an alarm system, pool servicer and gardener and the owners come and enjoy them whenever they are able to :=]

I think this vacancy figure (that needs to be absorbed thru sales) is high but I can’t say by how much.

[SK in CV]

In general, I agree with most of those points. Just a few items to quibble with.

4. “Free” money from the Fed is causing speculation.

It’s probably more appropriate to say that cheap money from the fed is facilitating the speculation. Low interest rates do not make anyone speculate.

5. It’s a way for the Fed to help the banks to make up housing losses.

I’m not sure even what this is referring to. I don’t now what “It’s” is. Low fed rates? If so, probably close enough for government work.

On a related topic that seems to be all over CNBC these days is the gold and silver prices. Item 4 probably contributes to that too. My peeve about the discussion is that many so called experts attempt to differentiate between investors and speculators. There is no difference. Unless you’re a jeweler (or some other industrial user of gold or silver, where it’s a logical hedge), gold and silver are ALWAYS speculative investments. They have no intrinsic value (exceptions noted). They do not pay dividends, no earnings multiples, no earnings growth. They do not “produce” profits. It is a pure speculative play on future prices. Arguing any differently is either disengenuous or idiotic.

[SK in CV]

In general, I agree with most of those points. Just a few items to quibble with.

4. “Free” money from the Fed is causing speculation.

It’s probably more appropriate to say that cheap money from the fed is facilitating the speculation. Low interest rates do not make anyone speculate.

5. It’s a way for the Fed to help the banks to make up housing losses.

I’m not sure even what this is referring to. I don’t now what “It’s” is. Low fed rates? If so, probably close enough for government work.

On a related topic that seems to be all over CNBC these days is the gold and silver prices. Item 4 probably contributes to that too. My peeve about the discussion is that many so called experts attempt to differentiate between investors and speculators. There is no difference. Unless you’re a jeweler (or some other industrial user of gold or silver, where it’s a logical hedge), gold and silver are ALWAYS speculative investments. They have no intrinsic value (exceptions noted). They do not pay dividends, no earnings multiples, no earnings growth. They do not “produce” profits. It is a pure speculative play on future prices. Arguing any differently is either disengenuous or idiotic.

[SK in CV]

In general, I agree with most of those points. Just a few items to quibble with.

4. “Free” money from the Fed is causing speculation.

It’s probably more appropriate to say that cheap money from the fed is facilitating the speculation. Low interest rates do not make anyone speculate.

5. It’s a way for the Fed to help the banks to make up housing losses.

I’m not sure even what this is referring to. I don’t now what “It’s” is. Low fed rates? If so, probably close enough for government work.

On a related topic that seems to be all over CNBC these days is the gold and silver prices. Item 4 probably contributes to that too. My peeve about the discussion is that many so called experts attempt to differentiate between investors and speculators. There is no difference. Unless you’re a jeweler (or some other industrial user of gold or silver, where it’s a logical hedge), gold and silver are ALWAYS speculative investments. They have no intrinsic value (exceptions noted). They do not pay dividends, no earnings multiples, no earnings growth. They do not “produce” profits. It is a pure speculative play on future prices. Arguing any differently is either disengenuous or idiotic.

[SK in CV]

In general, I agree with most of those points. Just a few items to quibble with.

4. “Free” money from the Fed is causing speculation.

It’s probably more appropriate to say that cheap money from the fed is facilitating the speculation. Low interest rates do not make anyone speculate.

5. It’s a way for the Fed to help the banks to make up housing losses.

I’m not sure even what this is referring to. I don’t now what “It’s” is. Low fed rates? If so, probably close enough for government work.

On a related topic that seems to be all over CNBC these days is the gold and silver prices. Item 4 probably contributes to that too. My peeve about the discussion is that many so called experts attempt to differentiate between investors and speculators. There is no difference. Unless you’re a jeweler (or some other industrial user of gold or silver, where it’s a logical hedge), gold and silver are ALWAYS speculative investments. They have no intrinsic value (exceptions noted). They do not pay dividends, no earnings multiples, no earnings growth. They do not “produce” profits. It is a pure speculative play on future prices. Arguing any differently is either disengenuous or idiotic.

[SK in CV]

In general, I agree with most of those points. Just a few items to quibble with.

4. “Free” money from the Fed is causing speculation.

It’s probably more appropriate to say that cheap money from the fed is facilitating the speculation. Low interest rates do not make anyone speculate.

5. It’s a way for the Fed to help the banks to make up housing losses.

I’m not sure even what this is referring to. I don’t now what “It’s” is. Low fed rates? If so, probably close enough for government work.

On a related topic that seems to be all over CNBC these days is the gold and silver prices. Item 4 probably contributes to that too. My peeve about the discussion is that many so called experts attempt to differentiate between investors and speculators. There is no difference. Unless you’re a jeweler (or some other industrial user of gold or silver, where it’s a logical hedge), gold and silver are ALWAYS speculative investments. They have no intrinsic value (exceptions noted). They do not pay dividends, no earnings multiples, no earnings growth. They do not “produce” profits. It is a pure speculative play on future prices. Arguing any differently is either disengenuous or idiotic.

[scaredyclassic]

No intrinsic value? What does have “intrinsic” value, if not gold. It’s a nice thing.

[scaredyclassic]

No intrinsic value? What does have “intrinsic” value, if not gold. It’s a nice thing.

[scaredyclassic]

No intrinsic value? What does have “intrinsic” value, if not gold. It’s a nice thing.

[scaredyclassic]

No intrinsic value? What does have “intrinsic” value, if not gold. It’s a nice thing.

[scaredyclassic]

No intrinsic value? What does have “intrinsic” value, if not gold. It’s a nice thing.

[Arraya]

[quote=walterwhite]No intrinsic value? What does have “intrinsic” value, if not gold. [/quote]

Oil – other natural resources – but energy is the king

[Arraya]

[quote=walterwhite]No intrinsic value? What does have “intrinsic” value, if not gold. [/quote]

Oil – other natural resources – but energy is the king

[Arraya]

[quote=walterwhite]No intrinsic value? What does have “intrinsic” value, if not gold. [/quote]

Oil – other natural resources – but energy is the king

[Arraya]

[quote=walterwhite]No intrinsic value? What does have “intrinsic” value, if not gold. [/quote]

Oil – other natural resources – but energy is the king

[Author]

Posts