Your thoughts on the economy?

[funat50]

The GT Forum by the nature of the cost of entry seems to be made up of a group of fairly successful individuals.These individuals come from diverse parts of of the business and professional world and have experienced multiple economic rollercoasters.
Given the nature of the current markets and uncertainty among the masses what is you current take on things?
Are you investing in the market or holding cash?
Still considering a nicer home or staying put?
Continuing to spend on hobbies and leisure activities or staying put?
Still shopping for that 2nd GT? (Those with 2 need not reply.)
Are you concerned about a downturn in your life style?

 

[B O N Y]

The only folks that sold last week where fools.... Idiots that bought high and sold low... The secret is to be in the market and be diversified.... Won't be buying foreclosures for another year or two... There are buying opportunities on the marketplace now.

It was interesting to watch the auctions in Monterey... The big high dollars cars sold, the bottom seems to be dropping out of poorly restored cars, and American cars. Anybody with half a brain could forecast this. What would the Mona Lisa be worth if 1999 where produced. The guys that where using credit to buy toys are pulling back. Plain and simple.

Off on vacation tomorrow to play in Ireland and go to Goodwood.... life is grand

 

[PL510*Jeff]

The Economy

The only thing really wrong with the American economy is the poor judgment and nearly total lack economic/business/finance knowledge the TV Talking Heads show when "reporting" on it.

just my $ .02

 

[dbk]

The Fed's rate move the other day stopped the psychological tidal wave of panic, but will do nothing to address the underlying issues.

I'm not ready to say strap in for the ride, but Greenspan played the "Everybody buy a house! It's the best idea ever!" bit to a fault, we started giving away money for nothing to people who could never pay it in the first place, and we're paying the price. Everybody has seen the foreclosures, the market has been a rollercoaster...but where there is uncertainty there is opportunity.

 

[Neilda]

Cash, land and property.

The difficulties in the US sub-prime market will have (have had) a ripple effect over here and will continue to do so as the debt gets circulated in various financial instruments. However I've never played the markets and almost prefer to keep my cash where I can see it on the basis that once you have an adequate amount to see you through, why take risks?

Old fashioned, risk averse maybe.... but no worries either! :cheers

 

[B O N Y]

Subprime market was amazing.... let's see, lets loan money to people that have no credit, don't pay their bills, lets let them suck out any equity out of the house to buy cars, vacations, pay off interest only to prevent foreclosure, lets hope their property appreciates, sell off the notes to the bloody French and then lets be in shock when the house of cards takes a dump.... Sounds like a business plan to me.

 

[cmoody32]

Trade the markets! If you buy stocks on fundamentals and the tide is going out....all ships will go down. Active management is much more Conservative than passive. You may not make as much on the way up but you miss the down side. Also remember you can short stocks as well.

The fed's move on Friday was a band aide that in itself will not fix the problem that took 5 years to build. There will be more adjustment.

I live in Florida (the real estate bubble state). It will only get worse here and many other places around the country. Talk to the local banks....they are down on their deposits. Furniture stores going out of business, tradesmen fighting for work, people taking 2nd or third jobs to pay bills, foreclosures up over 100%, banks taking 70 cents on the dollar for their bad loans...etc.

Right now the consumer is still pushing this economy. This will slow, earnings will start to decline. We are just in a cycle and that is OK. We will not go into a depression (thanks to the week dollar) but is there anything wrong with a recession once in a while? It just makes for opportunity. If everything was Rosy all the time live would be boring.

I am not all gloom and doom, I am just not going to leave anything to chance. Could we be out of the woods, yes but we could be in for a lot more.

Relax and have a beer. Be thankful for the love of your family and friends. Enjoy your GT.:cheers

 

[Empty Pockets]

:thumbsup:thumbsup:thumbsup :cheers

 

[Cobrar]

Missing Opportunity

"Traders' not investors make money over the swings in the market. If you tend to support the 'trading' approach/side and want to own a stock, buy GS, otherwise borrow money from bank of Japan at 1% and buy Apple. :wink

 

[isaakgt]

Cash, land and property.

The difficulties in the US sub-prime market will have (have had) a ripple effect over here and will continue to do so as the debt gets circulated in various financial instruments. However I've never played the markets and almost prefer to keep my cash where I can see it on the basis that once you have an adequate amount to see you through, why take risks?

Old fashioned, risk averse maybe.... but no worries either! :cheers

Exactly the way I am. I don't buy paper, just dirt & metals of all kinds. :wink

 

[Fubar]

In my business a downturn in the econmy is a good thing. All I need is another Clinton in office and I'll be ready to retire. :willy

 

[S592R]

What I am concerned about most is perception. In middle America people measure their life in how much it costs to buy a gallon of milk, a loaf of bread, and an occasional pound of hamburger. When people see a multiple effect of those costs due to the cost of gasoline or whatever speculation... they react in very adverse ways. That gets the politicians chiming and promising .. then everything goes to hell in a hand basket.

Too much of a hands-off policy in the past on the cost of gas is something that has this republic majority based area starting to root for the democrats. That total 180 degree opposite reaction has me looking over my shoulder... and wondering if hell is freezing. Since I see my tax bill about to jump by another double digit percentage.

The basics of the economy is as simple as someone has to lose money for someone to make it. Or more over someone loses an opportunity for someone else to exploit one. The housing issue was insane. But then we live in a debtor society... its been marketed that way for decades .."you can have this for X easy payments of $xx.xx a month". So people have been trained to think in those increments.

Savings in this country has been dropping for the last three decades and use of credit has been on the rise. When you over spend what happens when the money is gone? you file bankruptcy and do it all over again is an answer that I heard one day. :ack

Most of us here don't really care if our grocery bill is 15% higher this week than last. But when people don't have an extra 2% ... you have a dangerous situation... and the problem is much more than just simply economic ... its also educational.

my two cents .. pure and simple.

 

[avant]

ford stock

Bony,
Whats your bet on Ford Stock?

 

[S592R]

In my business a downturn in the econmy is a good thing. All I need is another Clinton in office and I'll be ready to retire. :willy

If another Clinton is in office I'll need your services.

 

[californiacuda]

"The sky is falling, the sky is falling". Chicken little.

 

[B O N Y]

Bony,
Whats your bet on Ford Stock?

Hold and Sell at $15 if you so inclined.

 

[Kingman]

In my business a downturn in the econmy is a good thing. All I need is another Clinton in office and I'll be ready to retire. :willy

What line of business could that be? Welfare disbursements? :biggrin
...all in good fun now.

 

[S592R]

What line of business could that be? Welfare disbursements? :biggrin
...all in good fun now.

Fubar is a bail bondsman. :biggrin and a damn nice guy I might add.

 

[Fubar]

What line of business could that be? Welfare disbursements? :biggrin
...all in good fun now.

Welfare collections is a bit closer to the mark.

 

[Kingman]

Welfare collections is a bit closer to the mark.

:wink I see the correlation. I wasn't too far off the mark.