[VCJIM]

Sorry, I couldn’t resist.

Should wouldn’t even look at your questions? I think that’s a clever way to build bias into the media…fein ignorance by denying access to true information, or at least questions leading to true information. I HATE the media. HATE HATE HATE. Very few things in this world I truly despise; it’s one of them.

[VCJIM]

“Dude, where did you get that jacket?”

[VCJIM]

I’ve been using that website for a couple of months now, it’s pretty good but the numbers seem to jump around a bit.

[VCJIM]

I understand this statement in terms of margin accounts and the stock market:

“With 20% down, you’re leveraged 5X-to-1. Your gains and losses are magnified 5 times. With a stocks and margin, you’re leveraged 2X to 1. Without margin, it’s a straight 1 to 1.”

I don’t understand how 20% down causes magnification in the housing market (5x). Could you please explain in more detail?

[VCJIM]

Here’s an article on value pricing:

http://www.freep.com/apps/pbcs.dll/article?AID=/20060723/BUSINESS04/607230521/1017

[VCJIM]

I think you’re correct, but it takes time for sentiments to shift…it’s what happens in the interim that becomes the interesting thing to watch. Housing prices stayed relatively level through the mid-late 1990s in LA, because the general sentiment was real estate was a bad investiment after all the losses from the late 80s-1993. So even though pricing may again become affordable if things play out like most of us expect, it will still take time for people to come back in significant numbers.

[VCJIM]

Thanks PS, greatly appreciated. Most of mine is in Money Market, with 10% in the Japanese stock market, which I’ve lost $6,000 so far this year. Can you say dummy? Anyway, I’m as worried about the dollar as you are, I wish we had confidence in some alternatives. That’s why the FDIC foreign CDs caught my attention.

[VCJIM]

Hawk,

If you’ll please excuse my ignorance…what is an FDIC foreign CD? It sounds like an oxymoron! Could you point me to some places to learn about them?

Thanks!

[VCJIM]

You mean Gateway isn’t Gateway anymore?

[VCJIM]

My house is tiny.

[VCJIM]

Agreed too. They were very permissive but set such good examples that there wasn’t reason to do too much damage : )

[VCJIM]

I don’t know if it is that high in other countries. We could Google some different countries and see what we come up with. I doubt any country is as high as the US.

I believe the upcoming crash / recession is seriously going to shake things up. I know many people that are so showy with their “wealth” (real or imagined). While I do not wish them harm, I actually believe a little “grounding” will be good for them and our culture. Free money is not all it’s cracked up to be. Criminals get “free money”, how happy are the criminals you know? (I’m not saying you know any).

I think my values are different for a few reasons:

– My parents were upper middle class but never showed it. They drove crappy cars, didn’t spend a lot on much of anything except those things that were really important to them. We never had money troubles or stress; we could do what we wanted because we lived within our means.

– I started working at a very young age and paid for many things myself. I had friends that were quite ostentatious; they got mugged in Hollywood even though they didn’t have a penny in their pockets! I would walk around with hundreds of dollars (as a teenager), but no one bothered me because I didn’t show it.

– I learned early on that possessions do not bring happiness. The greatest happiness in my life has come from accomplishing my goals; money or possessions have had little to do with it.

– Through my travels I have been able to see many cultures that are not possession-oriented. As you wrote, family values, education, conservation, environment, caring for the elderly are priorities. I hope a little of that rubbed off on me.

And you?

I also have another question: If another culture or country had a similar situation as we have had (I’ll call it free money), do you think the people would have acted similarly or differently compared to what we’ve seen here?

[VCJIM]

HS and I are good; thank you for your interest 🙂

Related to your post here and other threads, what do you think it will take to change the way *many* Americans are? If the housing market tanks (as we expect), and a recession results, (as we expect), I believe those that are most extended (least responsible) will get the worst of it. Do you think that is enough to bring about change? Or will it need to be something of even more significance?

[VCJIM]

I think it’s kind of cute in an ugly sort of way.

Most out of state realtors want to capitalize on California’s huge run up in prices.

[VCJIM]

HS,

Thank you for modifying your statement into “SOME Americans”; with that you and I definitely agree. Even if it was “MANY Americans” we would still agree. I apologize for being so nit-picky, I guess I’m sensitve to any generalization, whether it’s about Americans or any other culture.

Have you seen any good houses for sale?

: )

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