Well, "the end of the world", that's how I see it over here in London if his prediction comes true. Gold and Euros, Gold and Euros.
Gross is a smart guy, and he's getting pretty direct now, saying the housing crash is going to spill over into the general economy in a big way. Welcome to reality, welcome to America 2007.
PIMCO's Gross: Rate cuts coming - Bond king says Fed may lower interest rates by as much as 1 percentage point in 2007, warns of further dollar decline.
The Federal Reserve is likely to slash benchmark interest rates by up to one percentage point in 2007 as U.S. economic growth is stung by weakness in the housing market, Bill Gross, chief investment officer of PIMCO, said Monday.
He said that a clear hint from the Fed that rate cuts are on the way could set up further weakness in the dollar. "Once people start to believe that the Fed will have to cut interest rates in the next three to four months, the dollar's decline is going to accelerate," he said.
Gross said that over time, the housing market downturn would exert more downward pressure on the overall U.S. jobs market and consumer spending, potentially pushing up the jobless rate.
It could be another one to two years before the effects of the housing bubble are unwound, he said.
December 12, 2006
PIMCO's Gross predicts the end of the world (for the dollar and US expats) as housing crash continues
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Oh please let me get my tax refund first before the big crash, i am going Oil stock...anyone have any great tips on this? Also we have seen the dollar at 80 before this is nothing new...but if and when the dollar goes 60..40...then we better head for the hills, in the mean time metal is cheap...buy buy buy...and a side arm is always helpfull also.
"one to two years befor the effects of the housing bubble are unwound"
Yeah, that's what the Japanese thought too
Yes... the republicon plan to take the place down from the inside is right on schedule...
Funny everyone thought they made a lot of money off of housing, only to have any money put into the bank in dollars become worthless, and to have any gains on paper disappear.
The only winners will be people who sold at the peak and bought gold
Well we could have Impeachment hearings and maybe slow down the dollar decline, at least the sheep will not notice they will be to busy watching the hearings, when all along their purchasing power is brought down to squat.
80 forclosures in my city alone last month...and now they are talking about raising property taxes, after a hugh increase last year due to values...excuse my Fictional values that is. The system is coming to a halt folks for sure..it can not be sustained.
Hahaha! Panic begets panic, greed begets emptiness. I hope Cheney and pals, with their patriotic money fully converted to Euros, enjoy a painful and ignominious end.
On topic [link].
Is now a good time to buy an AK-47? You know, for when the revolution comes?
*puts on foil hat and sits in corner chair. Waiting. Watching.*
Shoooooot, anytime is a good time to buy an AK-47!
*cums*
Bill Gross isn't beholdin' to anybody, so all of you HP weasels should pay close attention to what he says. The Fed is going to fix this mess by inflating away debts and keeping interest rates artificially low to avert a widespread HP.
Yes interest rates may go up to 9%-12%, but they will be "low" because inflation is going to hit 15%-20%. Buckle your seatbelts and get the hell out of USD assets.
Keith are you smoking again? I think all those who read here should read the link to the article and it isn't apocalyptic. There is no prediction of "the end of the world" It says there is a continued correction and that it may take two years to work out the excess in house market and the expectation is a lower interest rate and a lower dollar.
Your twisting of facts here makes everything you say suspect. You might as well be a Christian fundamentalist who says the bible's two witnesses who are slain were Sadaam's sons and that he is the "beast who was wounded and appeared dead" and then rises again to restore his kingdom in Babylon.
Like i said we have seen the dollar tank before..one just has to look at the historic interest rates of the 1980's, is it really different this time, yes and no...I dont think we will be eating out of trash cans, not yet anyway. My thing is let the global currency bottom out..some have enven said you should by a house as it is an asset, another words your either in or not.
FLAME AWAY!
I suggest buying gold through a trust known as "GLD". I hope Americans buy before China, India, the scavengers in SA, etc.
provided you set up an institution for making sure that gold was stable in terms of commodities. You have to have a stabilization authority in order to make gold stable, but gold would be useful if that occurred."
Translation: Gold will be useful if we control it, just like we controlled the dollar until it was no longer useful.
Honica knows who this is about.
Borkafatty is correct. For those of us who have seen the currency cycle before, it is necessary and good, if not painful to those who want to buy IMPORTS.
Imagine the revival in manufacturing when our dollar is worth less than the Chinese Yuan. And Airbus? How can they compete with a cheap dollar and Boeing? And European goods? In Euros they've already almost doubled in price from the Euro's low. Trade balances ebb and flow.
Still, can anyone comment about the article? I went and read it and it doesn't say what Keith has posted, "Pimco's Gross prdicts the end of the world."
Foxwood it's called satire you idiot
"PIMCO's Gross predicts the end of the world (for the dollar and US expats) as housing crash continues"
"Shoooooot, anytime is a good time to buy an AK-47!"
Or AK-48 OR AK-49, whatever it takes!
Right now you can walk into any bank and get a 5% rate on savings. Yet you choose to invest your money at 0% at the IRS instead. Good god man, you haven't mastered the basic art of savings, how can you possibly have a clue about dollar deflation or housing markets?
Anyone else here expecting a refund this year? Keith?
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borkafatty said...
Oh please let me get my tax refund first before the big crash, i am going Oil stock...anyone have any great tips on this? Also we have seen the dollar at 80 before this is nothing new...but if and when the dollar goes 60..40...then we better head for the hills, in the mean time metal is cheap...buy buy buy...and a side arm is always helpfull also.
borkafatty said...
Oh please let me get my tax refund first before the big crash, i am going Oil stock...anyone have any great tips on this? Also we have seen the dollar at 80 before this is nothing new...but if and when the dollar goes 60..40...then we better head for the hills, in the mean time metal is cheap...buy buy buy...and a side arm is always helpfull also.
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I was being a smart ass dont take life to serious Chauncy... sheesh! i keep my money close trust me!
Was reading about Tokyo's bubble back in 1989 and since people here love to compare the current bubble to Japan, here is a quote I read to give HPers some food for thought:
"Prices were highest in Tokyo's Ginza district in 1989, with some fetching over US$1.5 million per square meter ($139,000 per square foot), and only slightly less in other areas of Tokyo. By 2004, prime "A" property in Tokyo's financial districts were less than 1/100th of their peak, and Tokyo's residential homes were 1/10th of their peak, but still managed to be listed as the most expensive real estate in the world. Some US$20 trillion (1999 dollars) was wiped out with the combined collapse of the real estate market and the Tokyo stock market.
Adjusted for inflation that would be $216, 633 per sq ft.
This on top of their Stock bubble. The article said that Japan lost some 20 trillion in real estate as a result of that bubble pop.
How does that compare with the USA where I imagine nationwide the average home costs around $100 a sq ft except in some bubble areas where $200-400 is high and those extreme markets where maybe $1,000 a sq ft?
Not to mention the ignored posts about the current price appreciation in Europe, South Africa, Australia and NZ where their home prices have risen even higher-recall those posts where in 10 years prices rose on average 100% or 10% a year here and in some places like South Africa over 300% or Ireland and Britain some 200%.
What do we think is a reasonable price? Does the market dictate that or do buyers? Is it the cost to build or replace? Is it just a buy/rent ration only?
7. In our day the power which has replaced that of the rulers who were liberal is the power of Gold. Time was when Faith ruled. The idea of freedom is impossible of realization because no one knows how to use it with moderation. It is enough to hand over a people to self-government for a certain length of time for that people to be turned into a disorganized mob. From that moment on we get internecine strife which soon develops into battles between classes, in the midst of which States burn down and their importance is reduced to that of a heap of ashes.
8. Whether a State exhausts itself in its own convulsions, whether its internal discord brings it under the power of external foes - in any case it can be accounted irretrievably lost: IT IS IN OUR POWER. The despotism of Capital, which is entirely in our hands, reaches out to it a straw that the State, willy-nilly, must take hold of: if not - it goes to the bottom.
the truth is out there:
http://www.youtube.com/watch?v=GbPetrK_6Lc
I'm amused at the posters here who think that owning gold will protect their "wealth". True wealth is control over the means of production. Farmers, landlords, industrialists can be wealthy. People sitting in rented apartments looking at bank statements on a computer screen are not wealthy, and they never will be.
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