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rb_engineer
Participantbsrsharma,
Its not clear to me that Walmart’s troubles are caused by Walmart or the subprime mess. Their profits are shrinking which could mean that their costs are rising or they messed up with their pricing. Not sure they forecasted their sales. The point is gdp growth globally is >5%, how do you see this changing?
rb_engineer
Participanttangouniform,
Not sure how to respond. I’ll try your last paragraph:
“The bottom line is that while we may be using billions of OPM in Iraq and enslaving our kids, we don’t see the immediate effects. When the credit market and the housing market finally get marked back to rational levels we are going to see the effects first-hand and personally.”
Result of things going on in the credit market will mean just one thing: higher rates. That will hamper demand and cause prices to come down to compensate. This has been happening for the last 3 years and will continue to happen until supply and demand is met. Basically, this is market at work and not very surprising. Not as scary as you think…
rb_engineer
Participanttangouniform,
Not sure how to respond. I’ll try your last paragraph:
“The bottom line is that while we may be using billions of OPM in Iraq and enslaving our kids, we don’t see the immediate effects. When the credit market and the housing market finally get marked back to rational levels we are going to see the effects first-hand and personally.”
Result of things going on in the credit market will mean just one thing: higher rates. That will hamper demand and cause prices to come down to compensate. This has been happening for the last 3 years and will continue to happen until supply and demand is met. Basically, this is market at work and not very surprising. Not as scary as you think…
rb_engineer
Participanttangouniform,
Not sure how to respond. I’ll try your last paragraph:
“The bottom line is that while we may be using billions of OPM in Iraq and enslaving our kids, we don’t see the immediate effects. When the credit market and the housing market finally get marked back to rational levels we are going to see the effects first-hand and personally.”
Result of things going on in the credit market will mean just one thing: higher rates. That will hamper demand and cause prices to come down to compensate. This has been happening for the last 3 years and will continue to happen until supply and demand is met. Basically, this is market at work and not very surprising. Not as scary as you think…
rb_engineer
ParticipantWiley,
I don’t think recession is calculated with gdp growth adjusted for inflation. Correct me if I’m wrong.
rb_engineer
ParticipantWiley,
I don’t think recession is calculated with gdp growth adjusted for inflation. Correct me if I’m wrong.
rb_engineer
ParticipantWiley,
I don’t think recession is calculated with gdp growth adjusted for inflation. Correct me if I’m wrong.
rb_engineer
Participantbsrsharma,
Aren’t you being a little over the top? Recession is 2 quarters of negative gdp growth. We just had about 2.5-3% growth last quarter and prediction is about 2% this quarter.
I think hoping for a correction in housing is very reasonable thing. But your expectations have to be realistic.
rb_engineer
Participantbsrsharma,
Aren’t you being a little over the top? Recession is 2 quarters of negative gdp growth. We just had about 2.5-3% growth last quarter and prediction is about 2% this quarter.
I think hoping for a correction in housing is very reasonable thing. But your expectations have to be realistic.
rb_engineer
Participantbsrsharma,
Aren’t you being a little over the top? Recession is 2 quarters of negative gdp growth. We just had about 2.5-3% growth last quarter and prediction is about 2% this quarter.
I think hoping for a correction in housing is very reasonable thing. But your expectations have to be realistic.
rb_engineer
ParticipantPerryChase,
No, I’m saying it used to be their favorite whipping boy. Now, its not and we hardly hear about it anymore. Now the media is milking subprime story which probably is not as significant as Iraq. Nevertheless its fun!
rb_engineer
ParticipantPerryChase,
No, I’m saying it used to be their favorite whipping boy. Now, its not and we hardly hear about it anymore. Now the media is milking subprime story which probably is not as significant as Iraq. Nevertheless its fun!
rb_engineer
ParticipantPerryChase,
No, I’m saying it used to be their favorite whipping boy. Now, its not and we hardly hear about it anymore. Now the media is milking subprime story which probably is not as significant as Iraq. Nevertheless its fun!
rb_engineer
ParticipantAndy,
Not sure your question is relavant anymore since old lady is NYT…
My point was that the so called dumb investors have long market horizons. They don’t usually plan to use it for mortgage payments. Especially since its tied up in 401K.
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