November 01, 2007

HousingPANIC Stupid Question of the Day


Is this inflation/deflation, dollar/oil/gold, SIV/CDO/ARM/HELOC stuff all just a bit too confusing for you?

What's your financial strategy today, pure and simple?

85 comments:

DC Williams said...

Only in resource stocks such as oil and agricultural, gold and silver. Nothing in savings/money market accounts as they just drop in value. Have no debt except my home mortgage (w/$300K equity right now) and a cash flow positive vacation rental property mortgage (with $200k equity right now).

g said...

Nothing is really safe in this crack up boom environment. My investment strategy is capital preservation. Hussman's fund, some metals, oil, merk hard currency fund, and bear funds. Also a nice looking risky bet against commercial real estate with SRS, but that is a short term holding as ultimately dollar destruction could prop up CRE prices too.

Mark in San Diego said...

My financial plan seems to change by the day. . .this whole thing is a moving target, and it IS hard to sort out the daily swings.

Some Facts - the sub-prime mess is FAR from over, and banks have only begun to take hits

- Housing prices are still much higher than average incomes in bubble parts of the country

- Housing prices are cheap in Cleveland and Detroit, but the auto layoffs are killing those markets anyway

- Oil may have peaked for a while, but the long term trend is still up - Read today's FT - The head of TOTAL (France's largest oil co) said the world is in a real pinch to increase oil production, and estimates are too high.

- Climate change/drought in wheat producing areas will increase the price of food

- Debt in USA is out of control, and consumers may finally be tapped out

I guess oil and food futures would be a good bet going forward - stay out of consumer product companies, and invest in necessity things - utilities come to mind. . .

jimbonaroni said...

I just pay my cheap mortgage, live on half my income, buy some silver here and there put some into a money market. and stock up on groceries on sale. Other than that...just let it all go on by. also I live in a small town and use 1 tank of gas per month. I can walk to most thing

devestment said...

My past plays.

Pumped and dumped eBay as an IPO.

Made money in the RE run up.

Bought gold at the bottom and have sold on the way up.

My future play.

Bought gold at the bottom and have sold on the way up.

Now trading overvalued chattels for undervalued dollars to prepare for overcompensation in the interest rate market.

Looking forward to lots of time off.

alert sheep said...

Built a fence,
getting a large protective dog,
staying debt free
getting rn designation to ensure I will always have a job that is needed.
Take care of the people I love.
Investments are diversified with decent portion in foreign stocks.
also locked and loaded, just in case. Conceal carry permit has been a thought. Crime is increasing in my area.

area 51 said...

Reduce dollar *CASH* holdings. (because we are not in a deflationary environment, and savings interests rates are declining)

Increase foreign denominated holdings. (because Europe *IS* experiencing a deflationary trend)

Increase purchases of securities, both foreign and domestic. (because we are in a slow growth economic environment. Stocks act as an imperfect hedge against inflation. Non-US holdings take advantage of strong economies and the declining dollar.)

No gold. (we are not in an inflationary environment, gold & oil's recent run-up is due to fear & speculation. The price of gold WRT 2006 US GDP is nowhere near the Jan 1980 high. There is no supply/demand problem with oil. Companies do not have the pricing power to pass on energy costs to the consumer, including refining companies. China is losing pricing power every day the dollar drops)

I look forward to a bright prosperous future, and the eventual return of manufacturing to the US.

Ben & Co. I wuv you.....

Message to China:
So you won't let your currency float? Well how about this stealth nuke then BEEEEAWWWTCH!!!

michael said...

i am in all u.s. dollars. i have more confidence in the dollar than i do:

1. the u.s. stock market.

2. myself with respect to investing in foreign markets.

3. precious metals. the folks that bought at the peak in the early 80's are still screwed.

Anonymous said...

I look at an investment and say to myself, "Does this make sense if the U.S. economy tanks?" and if the answer is yes, I invest in it.

Happy Homedebtor said...

Diversified 401ks (small, mid, large, international), maxed Roths every year in S&P500 funds, no debt that's not 0% for stuff, finishing an MS in August '08 and MBA in August '09, gradually increasing savings in a rainy day fund, buying some land up north w/ my dad.

That'll take us through end of 2010, after which point we will re-evaluate how/where the economy is, where we are, whether we want kids, etc. And then, we'll layout a plan for the next 2-5 years.

Diversify, diversify, diversify: Tax-advantaged investment accounts, real estate (0-maintenance LAND), and most importantly: invest in ourselves via education. The value of an education, short of being hyper-focused/specialized, never depreciates, and gives you the best ROI long-term, period. Finer details with 529 plans for kids, individual mutual funds, commercial real estate, etc - can all come later. I'm only 30 and the wife is 26, so we've got nothing but time: 15 years before the "ideal" retirement, 25 before realistic, and 35+ before "standard".

JohnnyReb said...

I have GLD, SLV, and just bought some GA on a whim.

Puts on Countrywide, Lowe's, Financial, and Transportation sectors.

Still 50% in cash, what to do......

Anonymous said...

I do not know what to do.

I maximize my 401k and get all the matching. Its in a growth stock fund, a corp. and gov't bond fund.

I have an IRA in growth & Income mutual funds and Int'l/global funds.

I have about 60+k in savings that I want to use as a 20% down payment on a home once housing drops the predicted 10-20% in my area, Metro DC.

Anonymous said...

Just pay off debt, live under means and save. EVERYTHING is bubbles.

6% Is Dead said...

Get out of debt & owe the man as little as possible...plain & simple.

Anonymous said...

not telling

borkafatty said...

like the other poster said, just going to ride it out..and buy more silver...Great reality show it is.

borkafatty said...

By the way how are them shorts playing out today..Short huh.

Anonymous said...

Mark in San Diego said...
'Oil may have peaked for a while, but the long term trend is still up - Read today's FT - The head of TOTAL (France's largest oil co.) said the world is in a real pinch to increase oil production, and estimates are too high.'

1) I would be embarrassed to associate my name with FT (its equivalent to the National Enquirer)
2) I would be embarrassed to associate my name with French anything
3) I would be embarrassed to associate my name with a head of an oil company making prediction on the oil industry,
they benefit if oil goes up.. don't ya think?

Nothing personal, in general i enjoy your comments :-)

See, few things are more disgusting then the fake infomercials from the oil companies talking about 'renewable energy'.

Noodles said...

Sit in a corner with a bottle of vodka...

Lady Di said...

1. Living off 50% of my income and saving the rest.

2. Saving for my 3 kids' college so I can pay their tuition in cash.

3. Planning to use my cash to buy firesale goods in the very near future.

4. Loving the fact that I have always lived below my means, so I can live a relatively stess free life.

5. Watching everyone around me that used their homes as ATM's wake up to the fact that they are in deep doo doo. The looks on their faces are priceless.

6. Planning a trip to Greece this summer. It will be expensive with the Euro, but that is where our extended family lives, and in the end, that is what matters most - the relationships you develop and nuture in this life not the meaningless crap that you buy.

Anonymous said...

Gold and silver through everbank.com

SKF and SRS

Silver and gold miners - GDX, HL, SLW

Commodities - DBA

Oil - USO and DBO

Pounds and Euro

But the house - oh, that's in dollars. I guess I shouls have sold but it's a 100 year old beauty in CA wine country and could never be replaced. So I'll take the hit and treat it as a home as I always have.

I've been told to buy a few hundred solar panels, put them in storga and sell them in a year for twice the price!

Still luv u Keith.

Anonymous said...

My financial plan is simple. Stay out of debt. No mortgage and minimal credit card debt just to cover monthly shortfall but paid off in following months.

I am also keeping a cash reserve of up to two years. I sold my home in 2006 and I am a renter on month to month.

I am diversidied with 40% of my reserve in some stocks, commodities and bonds.

I am in the camp of more natural disasters taking their toll on the economy and homes (ie. Atlanta is in a severe water shortage).

Food and living expenses are going through the roof with every helicopter cash drop.

Bottom line is stay out of debt as much as possible and be ready for any major expense (ie. medical, job loss, vehicle etc).

Westparker said...

I have been diversifying out of dollar based assets. That said, it's never prudent to put all you eggs in one basket
-30% US large cap stocks, staying away from financials and consumer stocks. Especially like BA here.
-10% gold - Have held for a couple of years, could pull back 10%
-10% short dollar - Through FDPIX.
-10% Short US treasurys through RRPIX. Eventually we'll see inflation...
-10% - Chinese Yuan - Through Everbank - Recent position. I think the election will put increasing pressure on China to let its currentcy float.
-20% - International equity funds (unhedged to the USD)
-10% Money market funds, always need ammo to hunt for the next opportunity.

burn baby burn said...

I but guns and ammo so I can take anything else I might need from people that did not buy guns and ammo.

Rich Dad said...

Bicentennial quarters- with all of these new state quarters, people have also been pulling out the centennial quarters. Hence, less supply, and higher values.

I have nearly two rolls, and I expect that I will fetch a handsome sum of money for them when I am ready t oretire.

Oregonian said...

25% Yen (Everbank)
25% Vanguard Treasury money market
25% European currency (EUR, NOK)
15% Inverse S+P index (RYURX)
10% TIPS (VIPSX)

100% of my MD degree paid off...

Renting and waiting.

Andrew from Russia said...

Believe it or not, I'm about to begin cautiously readmitting greenbacks. Our native, "wooden stanard" rouble seems overfed with inflationary laxatives this year to keep me patriotic about "rouble strenghtening". It was fun to watch USD lose 55% of its power since Feb 2003 but after plummeting about 6% in recent months it looks too cheap. If it's set for a Zimbabwean scenario of exponential print-print-print, then so be it - I'll eagerly wait for that $50000 note (featuring Ben Bernanke of course) just to stow it along with 1 million Yugoslav dinars in my collection.

Needless to say, the Russian MSM greets the news of plummeting dollar deliriously each time! The currency that played a major part in bribes, gangs and shadow economy in now "dead" and "worthless", wheeeee!

W.C. Varones said...

Gold, VWO, VEA, and short CFC.

Anonymous said...

I basically follow Jim Cramer, Kudlow, Cavuto, Paulson, Bernanke, CNBC, Faux News, White House, and GOP. That's my strategy.

Signed, Sheeple

westwest888 said...

OK I've got a new one. I think the Fed knows everything we know, and then some. But when they speak, it's to a world audience so they're tight lipped.

What if Ben Bernanke is using dollar devaluation as a game of chicken with China to try and force them to abandon the currency peg? Exhibit A:

"The authority sold HK$7.828 billion ($1 billion) to defend the currency yesterday, twice as much as two previous interventions since Oct. 23."

How far can we go until they give up on trying to maintain the peg? We're forcing their hand to correct our trade imbalance.

turdly said...

All cash and 5% cd's. Laugh if you like, they just plug along. No worries, no manipulation on my part to countermand manipulations on the part of those stronger/smarter than I.

Just collect a lot of money in interest every month and roll it. No 401k, no IRA, I plan on being in a higher tax bracket when I retire, not a lower one.

Martin Hoffmitz said...

I am kissing my heini goodbye and getting ready to run for the hills.

LauraVella said...

I sold all our gold stocks except NEM, and kept BWP.

Rolled Vanguard money into CD's with a 5.35% interest rate.

Have some FDIC protected MM accounts.

Planning to buy into the miners again when the market corrects.

Bought some 50 balboas for a good price recently, will hold for the long term.

Not much more I can do at this point.

concerned said...

I am into positively geared real estate and cash. Have bit og gold just in case of a war, which I would never sell.

But for me cash is where it is at right now. And If I lived in the US I would be stocking up on USD. The Euro and other currencies are gonna hit the fan, and people will run to the USD like a heroine addict to their dealer.

Anonymous said...

Small town broker says.

The weak dollar trend will continue until the FED tightens rates.

With an election coming up 11/08 I don't see them tightening over the next year.

Weak retail sales and worsening mortgage backed securities issues will most likely cause them to weaken the dollar further.

GLD, SLV, FXA, FXC, FXE, USO.

EWZ, EWA, FXI for speculation.

Deflation? Hmmm, I really should have a contingency plan.

Suggestions?

Mark in San Diego said...

To West888 - now THAT is some new thinking, and why I like to read the blogs. . ."that the Fed is trying to get China to abandon its USD currency peg.". . . .very interesting. . .

To Anon: "FT is the National Enquirer". . .hey! Where do you think I get great financial information - that's right, reading the National Enquirer at the 7/11 every morning.

Anonymous said...

I'm sticking with cash. I have both eyes open for a business niche to invest it all in. If the currency is going to crap and the FED is gonna print paper at light speeds then people are gonna have money to buy more stuff.

Anonymous said...

As an Undocumented (okay, Illegal Alien) call me what you want, my plan is to continue to receive free schooling for my children in the public schools, use hospital emergency rooms whenever I need medical care, receive food stamps and WIC vouchers for all the food we want for our familia. We also pull together four other families living with us so we can pay the mortgage of $2600.(its not too bad, between three hard-working men and four women, and 11 children, we can easily make ends meet. I drive an Escalade with spinning rims and spit on your lawns when I cut your gringo grass.

Anways adios

long termer said...

The dollar is a cheap now; no one can predict the bottom.
I am saving up as many greenbacks as I can get my hands on.

I do have gold and a well-diversified portfolio which is doing very good so far this year.

I am extremely bearish on Europe; the entire EU is one gigantic stretched bubble,
to me it’s as clear as the housing bubble was back in 03 –06.
There have been no major changes on the European continent, like the discovery of large fossil fuel fields, or any kind of economic transformation, or any kind of political transformation for the better etc. lately
The x commie countries are in reality still in the dumps and don’t see that changing in the near future.
The herd seems to be running to London and doing American business remotely.

So just like housing this whole Euro / Pound story has an upside down P/E.

Budvar said...

I have a few grand in pound notes, I also have a few ounces of PMs, I looked into the selling the highs and buying the dips, but by the time you've f*cked around with the spreads and taxes, it aint worth bothering with.

Just scrape together a few 100 quid and buy on the dips, and stash it with the rest.
As for the "Ya cant eat gold", ask those who bought gold in 72 for $35 and sold in 80 for $800, Gold 27 years later hasn't quite reached $800 yet, but gold is in a bubble???

If you're going to buy PMs, buy the real stuff, ETFs etc are nothing but promises to pay with further promises.
To those who say "But the gov will confiscate it", get real, this is 2007 not 1930, a trip to Europe is a $200 5hr flight away, not a 3mth wage 6 week boat ride away.

resisting husband said...

Absolutely zero in savings. $14k in an IRA, but i have no idea how this financial stuff works....I did get on there recently and dump all the ones that said "mortgage backed security" and USA, and moved them to the ones that say "World" and "Asia". Other than that i have no clue about investing.

I will keep dumping all my USD into rare records. check out popsike.com for an idea of the vinyl bubble, there is money to be made!!!!

Anonymous said...

Small and micro cap N. America oil and NG companies that are growing production by 30+%/year. I don't want just capital preservation, I want growth too. Been invested in this segment for 4 years now have made some very good coin.

Anonymous said...

The only strategy that will work is to shoot straight and keep your powder dry.

Ha, Ha, Ha!

Erstwhile Anon said...

How about "long on the future", where "the future" is sustainable technology, nanotech, etc.? We're going to go through a rough patch, but when we come out of it, we're going to go Green in a big way. Hang tight, everyone.

Anonymous said...

From one undocumenetd alien to another -
You send your children to school? I have mine working in the fields. All twelve of them. Make mucho dinero. Very good children. Oldest is thirteen. Youngest is nine. Oldest can even read a little. Very proud of him. Very Good boy.
Adios

FORECLOSUREBOY said...

beanie babies are ripe for a comeback.


they arent making any more stuffed animals!!!

Anonymous said...

I'm invested in a 2.5 inverse fund of the russell 2000. It went up 10% today. It's a roller coaster, but I know which way the roller coaster is going!

bottom feeder in philly said...

My plan,
1)Keep my rentals full and paying(so far so good 96% occupancy and 90% current on rent.)2) Sell as many cheap used cars as I can.(I am a used car dealer as well as a realtwhore, and landlord, no scumbag jokes please) I will keep pricing low and be happy with modest profits.3) Do some Real estate wholesaling. There will be tons of deals available(more than I can buy) sell off my short sale contracts to other investors for a quick 5 to 10g. Hopefully I can do 1 a month starting next year.4) Grow my property management co. There are going to be a lot of people forced to rent unwanted properties.5) Buy 5 million dollars worth of distressed Real estate towards the bottom of the market.(lease options will be a great strategy towards the bottom of the curve) Plan on being a cash flow landlord the next 12 to 15 years. 6) Sell off everything in 2020 during the next market upturn(except 1 car lot and my best cash flow buildings) and retire with a 10million net worth at 50years old.7) Pray it all works out. 8) keep reading housing panic, study and learn more about the economics cycles so I can best capitalize on what is happening. There is a fortune to be made in all this mess.
Bottom Feeder in Philly

Anonymous said...

I make $180K a year and live on 1/2 that. The other 1/2 is invested in a roughly even mix of s&p500 index funds, precious metals funds, FDIC insured CDs, corporate bonds. I have averaged 15% return a year over the past 5 years. I have no debt.

I'm 33 and plan on retiring by 40 to a small sunny island somewhere.

As long as the world doesn't completely blow up in the next 7 years I don't really give a fuck what happens.

Anonymous said...

inflation/deflation all depends on supply demand

there is an oversupply of houses, therefore prices will go down

there is a shortage of oil and food, therefore prices will go up

Anonymous said...

I am in the camp of more natural disasters taking their toll on the economy and homes (ie. Atlanta is in a severe water shortage).

===============
Dude I live in Atlanta and believe me this drought has had zero impact on anyone. OK so I can't wash my car anymore. Aside from that it's a non-issue around here. There is plenty of water. It's just being diverted right now so some mussel on the endangered species list doesn't get hurt. That shit will end PDQ and we'll all have water again. Even the craziest of enviro idiots realize you can't deny water to 5 million people in order to save a mussel.

This is an MSM made non-event. The fact CNN is based here has a lot to do with it.

Meltdown Man said...

Just bought the rights from a guy to his condo currently under construction in south Florida. He had waited in line for the right to buy it and I was lucky enough that I only had to give him a 15% premium on his deposit! Boy is this gonna be easy money when I flip it!.... ;-)

Reality
GLD,GDX,SLV,FXA,EWY,PBR,PTR

Bill in AZ said...

OK I've got a new one. I think the Fed knows everything we know, and then some.

It's scary that so many people think that the drivel they spatter on web logs all day long is actually some kind of deep and revealing wisdom.

Of course they know what you know. Most of these guys:

a) have IQ's above 150
b) have doctorate degrees from very expensive Universities
c) have immeasurable amounts of experience in the field
d) have written books on economics
e) have also read internet blogs written by laymen

Sure, there are always going to be some of these guys with their heads completely in their asses. Just because one is a doctor doesn't mean he can't be a dumbass. But in general, you've got a surprise coming if you think guys like Bernanke & company have no idea what's going on. The real issue is (and has been) their motivations, which are the same as everyone else's: look out for number 1.

Oh, they know what's going on. If you recall, they are the ones who caused most of the problems, remember?

bubbleglum said...

I'm feeding the wild turkeys and deer that wander into my yard and stocking up on canning jars and lids. Mucho ammo already horded. Loaded up on firewood. I'm also heavily invested in my orchard, half acre of asparagus, and fish ponds. And, of course, my still.

Can't eat greenbacks or yen. I've heard that by the end of WWII, the germans were eating wallpaper soup to stay alive.

Stuck in So Pa said...

Like the head gremlin in "Gremlins II" said:

"We're advising everyone on this end to invest in can goods and shotguns"!

Anonymous said...

Physical silver (and some gold). It's an "armageddon play". Should explode as the financial system implodes. Could still be a few years off.

Roccman said...

Financial strategy...??

Watch 6 Billion die and emerge as king.

Smoove D said...

Shorting like a mofo. Puts and straight up old school borrowing and selling. I've got stops on the stock shorts so if it goes to hell, I'd lose about what I would buying puts that go to zero. I'm using the shorts where I don't like the premium on puts (i.e. the premium is higher than I think it should be). So far, I'm smokin' M3 like it ain't no thang, but who knows - this is some risky sh1t and I ain't betting the rent money.

Anonymous said...

Maxing 401k with domestic value and mid cap, 40% international growth . Maxing IRA with oil and gas stocks and I'm buying anything to do with renewable energy, solar, wind, etc. Microcaps like Satcon technologies, (SATC), that make circuits for wind turbines and Vestas since renewables are going to be the next big oils and big oil will fall as their fields where they are making big profits are increasingly nationalized. Buying silver (gold too pricey) and paying off debts as fast as I can.

The Wonkster said...

Keith,

You still haven't explained how hyperinflation is going to happen if wages remain stagnant.

Still lov ya but I'm not a "Keith Sheeple."

Anonymous said...

Spending my cash on hookers, hookers have not inflated prices as of yet so take advantage while you can.

I keep looking for a prostitution ETF but cannot find one, I figure that would be the safest investment in volitile times on the planet.

Anonymous said...

Keith-

After reading these two articles, I'm no longer convinced that Bernanke is the devil we made him out to be.

By Ben B. Himself:
http://tinyurl.com/3d7ex4

By Dam Amerman, over at Safehaven
http://tinyurl.com/3c247d


Before you dismiss me totally, consider:

The greatest harm that will be done to the young generations is the legally binding entitlements that the boomers have promised themselves.

Inflating away the cost of those obligations will help the young tremendously.

High inflation will reduce the cost of mortgage debt, student loans, and future entitlement payments, that those young people never even had a chance to vote on.

Who gets hurt by inflation: Debt holders (banks, pension funds, etc.)

We are now at a point where the whole world knows the dollar is going down. But future generations are SHORT the dollar right now - they don't have any!

I think Ben B. is a very different animal than Easy Al.

I also think that devaluing the dollar - which he is doing in broad daylight - is going to be to their benefit. Besides, anyone who has dollars and knows what is going on has multiple easy options for getting out of the dollar. Think about it - China can't get out of the dollar tomorrow, but you or I can easily, since we have so few of them relatively speaking.

So who gets reamed? China, Japan, the big gov't pension scam, etc.

Inflation is great for the young people of America - read the articles.

Thanks for listening,

Brian

Anonymous said...

I have some gold and silver, but not too much. 900 is possible but it's getting expensive. House flippers got in trouble busting budgets to get into the next big thing. Gold might be there pretty soon!

The Dow is a sham. Once the Baby Boomer pull out you better be gone already.

The dollar will be back once the Americans take their bitter medicine. Probably 12/2009 - 03/2010 once Hillary finds out JUST how bad it really is. Assuming she is not just another globalist/neo-con in a donkey suit.

Around that time RE will be good buys.

The only thing that I am sure will increase is TAXES!

Anonymous said...

...oh! and lottery sales tickets!!!

Anonymous said...

concerned said...
I am into positively geared real estate and cash. Have bit og gold just in case of a war, which I would never sell.
----

Unless you are a big gold player like the GIM guys, buy and hold. IF things REALLY sh!t out, you will kick your self for selling at $900.

Anonymous said...

"burn baby burn said...
I bought guns and ammo so I can take anything else I might need from people that did not buy guns and ammo."

So bbb, what's your plan for taking what you need from others who also bought guns and ammo? How will you know who has guns and ammo? They might be letting you know VERY LOUDLY.
Hey, you just reminded me....I'll need a shovel.

They think in isolation said...

I love those posters who say they have 100k or 800k of equity in their homes, have savings, and a "good job". Yes but of course as there is a serious recession and the consequences of the financial bubbles come to pass your "equity" and "savings" and "good job" may well be compromised. Don't be smug its not as simple as "I own" I will be o.k. or the renters are stupid by saving at 5% (yeah and the debt holders are brilliant for hanging on to a depreciating house). News flash: you will all be affected. Yes, all will be affected.

Anonymous said...

Jan RTH puts because consumer is tapped out.

Anonymous said...

First American in mortgage fraud probe

A major US real estate appraisal company was accused on Thursday of conspiring with one of the country’s biggest banks to inflate home prices in a scheme that New York state officials said helped fuel the mortgage crisis.

Andrew Cuomo, New York attorney-general, filed a lawsuit against First American saying its eAppraiseIT subsidiary gave in to pressure from Washington Mutual, the biggest savings and loans group in the US, to use a preferred list of appraisers who allegedly provided inflated values for homes.

EDITOR’S CHOICE
US could be heading for a slowdown - Nov-01

US tops global competitiveness index - Oct-31

Data add to gloom on US economy - Oct-30

View of the day: US dollar - Oct-30

Lawrence Summers: How America must handle the falling dollar - Oct-28

Clive Crook: Settle down for some budget theatre - Oct-28

WaMu allegedly profited from the scheme because it allowed the lender to close more home loans at greater values. eAppraiseIT in turn became WaMu’s biggest client, according to the lawsuit. “We tend to look for cases that are emblematic of systemic industry-wide fraud and we believe this case does that,” Mr Cuomo told a news conference.

pwnd

downSide said...

2008 puts on mortgage banks (If there is a deflationary crash)

Double Long Latin American mutual funds (for all the flood of dollars flying out the trade deficit if they can keep the inflation going)

GLD (Only U.S kooks by gold. The market is really moved by Arabs buying gold, price of oil going up means gold goes up.)

GIM (For the dividend return)

wiserenter said...

I've gone back to living like a hippie or college student. I was much better off and much happier than when I had credit and pursued the "American Dream." Any trolls think I'm a loser or un-American. Kiss my ass!

Anonymous said...

Sometimes the combination of the "Right way", "Wrong way" and "Same way" is the best way.

Anonymous said...

sold my biz, and have diversified my bucks amongs foreign dividend paying stocks (www.europac.net), CanRoys (mostly oil/gas/energy), some shippers, some US CD's and still trying to figure out what else to buy...

Some good suggestions here.

BTW, Canada's CanRoys are becoming ripe picking for some of the SWF's looking for good energy assets.

Anonymous said...

All one big scam, and they're trying to keep a lid on it


Merrill Lynch in deals to delay mortgage losses: report

LONDON (MarketWatch) -- Merrill Lynch has engaged in deals with hedge funds to delay when it had to record losses on risky mortgage-backed securities, and the Securities and Exchange Commission has started a probe looking at how Wall Street is valuing mortgage securities, The Wall Street Journal reported Friday, citing people close to the situation. In one deal, a hedge fund bought $1 billion in commercial paper issued by a Merrill-related entity containing mortgages, the newspaper said. In exchange, the hedge fund had the right to sell back the commercial paper to Merrill itself after one year for a guaranteed minimum return, it added, citing an anonymous source. In recent weeks, Merrill has been scrambling to line up hedge funds to take as much as $5 billion in mortgage-related securities, people close to the situation said, the report added

Anonymous said...

Clearing my mortgage before I need to renegotiate my term, where I certainly won't get 4.5% fixed.
Keeping cash in an interest only account, waiting until the markets really drop.
Existing investments are in high-dividend paying blue chips. Even if/when they drop, they still have a strong history of payouts, and most of those companies have been around long enough and had enough success to weather the upcoming storm.

Budvar said...

"burn baby burn said...
I bought guns and ammo so I can take anything else I might need from people that did not buy guns and ammo."

So bbb, what's your plan for taking what you need from others who also bought guns and ammo? How will you know who has guns and ammo? They might be letting you know VERY LOUDLY.
Hey, you just reminded me....I'll need a shovel.



Oh yes, and body armour, don't forget body armour. You need type 3a or 4 with the plates, It doesn't half give you an edge when you're up against someone who couldn't hit a cows arse with a banjo!!

Happy Homedebtor said...

To Turdly:

1. You do know that a ROTH IRA is never taxed once the money goes in, right, since contributions are taxed before they go in? ;) Man, you guys actually know less about financials than I do...sad.

2. You do know that, assuming you work for "the man" and not yourself, the only way to get the free money from an employer with matching is to contribute to your 401k, right? So that's a 50-100% return on 3-10% of your salary (I've got a couple friends who've found deals at the high-end) instantly, guaranteed, free.

3. You do know that you can roll a 401K over to a Roth, right? Yeah - in a year or 2, you can do a direct-rollover, right now it's a bit trickier. You just pay some taxes on the conversion obviously - but since you're going to be in a higher tax bracket later...

In short: my GOD, you people have no financial savvy at all, you're just shooting in the dark with a gun you didn't even read the manual for!

I forgot: after 2010, we're going to shift EVERYTHING we can into Roths...earlier if the Dems push through tax increases. For the few - if any of you - who really do make gobs of money and want to not get screwed with 70% tax brackets to prop up social security, I suggest Roths all the way. :)

Rich said...

Hookers and blow, Keith. Hookers and blow.

Anonymous said...

For the few - if any of you - who really do make gobs of money and want to not get screwed with 70% tax brackets to prop up social security, I suggest Roths all the way.
---------------------------------

Uh, sorry, they already thought of that one. I make too much (more than 160k AGI) to contribute to a Roth IRA.

freedom fighter said...

Buying gold, commodity and oil stocks now is like buying NASDAQ in 1999. You may catch the end of the rise, but will most likely get caught in the crash.
The US dollar will return in strength.

Anonymous said...

>> I've gone back to living like a hippie or college student. I was much better off and much happier than when I had credit and pursued the "American Dream." Any trolls think I'm a loser or un-American. Kiss my ass!

Why, you un-American Hippie Loser!

Anonymous said...

GOLD TO DA MOON ALICE!!!!!!

Anonymous said...

My financial strategy is simple. Hold nothing in USD except the change in my pocket. Hold liquid gold (GLD ETF), short the housing market (SRS) and get my popcorn ready once China finally decides to let us know what inflation REALLY looks like.

Anonymous said...

Happy Homedebtor said...

To Turdly:

1. You do know that a ROTH IRA is never taxed once the money goes in, right, since contributions are taxed before they go in? ;) Man, you guys actually know less about financials than I do...sad.

2. You do know that, assuming you work for "the man" and not yourself, the only way to get the free money from an employer with matching is to contribute to your 401k, right? So that's a 50-100% return on 3-10% of your salary (I've got a couple friends who've found deals at the high-end) instantly, guaranteed, free.

3. You do know that you can roll a 401K over to a Roth, right? Yeah - in a year or 2, you can do a direct-rollover, right now it's a bit trickier. You just pay some taxes on the conversion obviously - but since you're going to be in a higher tax bracket later...

In short: my GOD, you people have no financial savvy at all, you're just shooting in the dark with a gun you didn't even read the manual for!

I forgot: after 2010, we're going to shift EVERYTHING we can into Roths...earlier if the Dems push through tax increases. For the few - if any of you - who really do make gobs of money and want to not get screwed with 70% tax brackets to prop up social security, I suggest Roths all the way. :)

November 02, 2007 1:57 PM


Just remember, THE RULES CAN BE CHANGED. Just because under current law Roth's aren't taxed, doesn't mean that when push comes to shove it will be left alone. Gold was legal until FDR stole it from Americans and repriced it. All bets are off when things go to hell.

charlatan said...

us shares 1.5%
bonds (some foreign) 0.3%
uk shares 12.5%

remainder in cash earning around 6% pa on average.

had a spread bet (long) on gold as a hedge w/about another 15% recently, but bottled out of it for a very small profit because it wasn't working well psychologically as a hedge.

possibly not very rational but what good is a strategy supposed to increase financial security if it affects one's sleep (and therefore one's work: where pay is most definitely performance related)!