[powayseller]

I don’t understand how Schiffer is implying that rising interest rates will cause the dollar to fall.
That’s NOT what he said. He said that the falling dollar will put upward pressue on interest rates. Whenever the Fed is done, we get a stock market rally and the dollar falls, because investors in the dollar think they can get a better return elsewhere.

equalizer, the Chinese and Russian economists have been quoted all year about their concerns of the falling dollar and their need to diversify out of the US dollar. Japan propped up the dollar a few years ago with the yen carry trade, which injected $300 billion into US Treasuries. Global central banks are tightening now, so a liquidity injection to buy dollars would go counter to their current monetary moves, and I think they cannot do it. How do you think those countries could save the dollar?

[powayseller]

I googled it, and kiki and I were right. It WAS Sony that closed its TV factory in Rancho Bernardo and laid off 400 employees. U-T link

It seems to me that more companies are laying off large numbers of people, than are hiring large numbers. The Sonys and Nokias are not balanced by large scale hiring anywhere.

[powayseller]

A health care technician earning probably $60K/year is paying interest only on a $500K mortgage, and nobody sees a problem? He’s at 5x income and not even paying any principal. How will he start paying the principal? Will he be forced into I/O loans his entire life? Even if his wife works and they earn $120K together, he is in over his head with that mortgage, IMO. I also think it’s amusing that he lives in a $1.1 mil house, because some from out-of-state think that you have to be rich to have a $1.1 mil house, and obviously he is not.

So he could refinance now with another I/O loan? He would pay $20K for the privilege of negatively amortizing his loan for another 10 years? Well, it doesn’t seem financially prudent to me, but at least he would be able to keep his house.

The question is: if he got his I/O loan in 2004 when the rates were 4%, and they are 6% now, that would be a 50% increase in his payments and can he qualify for that?

Most people won’t be able to refinance with a funny money loan, because they can’t swing payments at today’s higher interest rates.

KingKong, welcome back to the forums. He seems like he doesn’t want to sell, because he can’t stomach “losing” the equity that he had one year ago. He hopes that interest rates will be low in 3 years, so he can refinance at the same or lower rate he had in 2004. For all I know, he could incur penalties for refinancing early, and he could have some HELOCs.

[powayseller]

Thanks, sdrealtor for the correction. An employee who has to pay his own insurance, would not get the tax deduction though. In any case, I would venture that health insurance makes up at least 5% of the median worker’s expenses, and its weighting at .1% is inaccurate of a person’s actual costs.

This is why I stand by my assertion that it is useless, because its mission, to track the price changes of a consumer’s basket of goods, is not fulfilled by the manner in which they do it. We have to agree to disagree. I will not respond to any further debates on this, unless someone brings in a meaningful argument about how the CPI tracks the expenses that a typical American incurs.

[powayseller]

Here’s another example for Ms. Diane Wedner and Alan Gin. But of course they would respond by saying that one story doesn’t make a trend. Gee… perhaps somebody on this board would like to mail a list of houses sold at a loss, to the media.

[powayseller]

Do these realtors have other jobs lined up? What will they do? Leave San Diego? Well, that just leaves more business for you, sdr.

I spoke with my old realtor the other day, and they said the hardest job they have now is convincing sellers to list their house right.

[powayseller]

This is a serious concern. I think the city of San Diego could face bankruptcy, and we will see more budget cuts in Sacramento.

[powayseller]

More proof that the profit come from our own domestic oil.

The U-T story said”
Profits climbed 65 percent increase from the $3.14 billion profit during the same period a year earlier, while revenue rose 12.6 percent to $47.1 billion.
END U-T

Now we are all informed, about WHY the oil companies make so much money. It is NOT because the futures market is trading so much higher, but because they can sell their cheap domestic oil at futures market prices, so their profits rise 3X as much as revenue.

I wish I could claim credit for figuring this out. It was my brother who told me.

[powayseller]

PIMCO has been wrong for a year now. I don’t follow him any more, since he’s been wrong too many times. What I do like about McCulley is that he admits he’s been wrong. Maybe his business sways his outlook.

[powayseller]

I assume she isn’t friends with Ms. “Don’t-hurt-the-seller’s-feelings-by-offering-too-low”?

[powayseller]

Daniel, I already explained why the CPI, and thus the core CPI are useless. One is useless, the other is more useless because it excludes food and energy. Neither does proper weighting and neither is an accurate indicator of what is my cost of living.

[powayseller]

“I don’t know.” “I never touched THAT woman”.

Sound familiar?

[powayseller]

Bugs said It is the people who cite their experience rather than address the substance of the question whose work is most suspect. Bugs, that is exactly what this financial planner is doing about the Yuma deal. Telling me he doesn’t want to debate this anymore, but he’s been doing well at this a long time.

bob007, Nokia is laying off 1000 people. It will be announced the first week in August. In April 07, they will lay off the rest of the people. Sony is staying, right?

[powayseller]

speaker, how are things at Isis?

mrquoi, where in the Labor Market report are these jobs? I’ve studied the Excel file closely, and the number of new engineers every month is counted by the fingers, whereas construction and retail jobs is in the hundreds and usually over a thousand per month. my concerns about the economy came only AFTER I studied the jobs numbers. A few anecdoes you might have are certainly interestnig, but the non-farm payrolls data is quite concerning.

[powayseller]

The land is actually 40 miles OUTSIDE of Yuma, 4 miles away from that refinery.

Here is his lastest reply:
“I will send you more info on both the Arizona and Nevada land investments in the mail. I do have a list on the past land investment we’ve done. I’ll include them in the mailing.

We’ve been buying and selling land since the 1960’s, and we’ve had only two properties that did not make money.

Have a great week-end.”

Well, I will give him the benefit of the doubt. Let’s see what comes in the mail.

[Author]

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