- Thread starter Dolores1
- Start date
Possible US crash implications for DR
You'd be buying gold at the top of that market. If you're into investing, best to buy on the way down, and wait for the rebound. That means opportunities in foreclosures, or depressed health care, energy, or solid tech.
Most of all, I'd encourage you to not panic. Remember, up until relatively recently, stocks were meant to be held for years or decades, and day trading was limited to full time investing professionals, which most of us are not. We've had other financial crises before ('29, '46, early 60s, '74, '80, '87, '92, '01, to name a few), and they all worked themselves out. And every time, somebody said "this one is different, I don't think the economy will recover from this one."
Also, keep in mind few if any people make money buying high, which is what the story had been for several years. People were just seeking means to artificially keep the credit and housing bubbles inflated, and time has run out. Fine, let it happen and allow the suckers to do panic sells. You don't have a "loss" until you sell. Meanwhile, sit tight and let all of this work itself out. There is, after all, an incentive as wall street's own money is on the line now.
Personally, I'm looking forward to refinancing a few properties after the rate cuts make their way to the mortgage market.
Most of all, I'd encourage you to not panic. Remember, up until relatively recently, stocks were meant to be held for years or decades, and day trading was limited to full time investing professionals, which most of us are not. We've had other financial crises before ('29, '46, early 60s, '74, '80, '87, '92, '01, to name a few), and they all worked themselves out. And every time, somebody said "this one is different, I don't think the economy will recover from this one."
Also, keep in mind few if any people make money buying high, which is what the story had been for several years. People were just seeking means to artificially keep the credit and housing bubbles inflated, and time has run out. Fine, let it happen and allow the suckers to do panic sells. You don't have a "loss" until you sell. Meanwhile, sit tight and let all of this work itself out. There is, after all, an incentive as wall street's own money is on the line now.
Personally, I'm looking forward to refinancing a few properties after the rate cuts make their way to the mortgage market.
I NEVER suggested buying Gold up here, I am long from low $900s and I am well hedged with options. Any sell off is certainly a buying opportunity. I do not see the USD coming off much in the next few months to afford this opportunity. USDJPY below 100 is pretty scary. Are we headed to 1995 levels?
gold prediction!
Check out this stunning 2002 prediction on the price of gold....
http://www.dr1.com/forums/86373-post104.html
Check out this stunning 2002 prediction on the price of gold....
http://www.dr1.com/forums/86373-post104.html
Thanks for the insight...
Mondongo:
I specifically remember that post, as I was also long ABX at the time.
Additionally, you had some great exchanges, links and insight regarding everything from Central Bank Certificates, Peso/Dollar rates and the IMF.
My point is (slightly off topic), there is an invaluable amount of "real gold" nuggets in the DR1 archives, contributed by the many posters who have helped make this sight a must read on all things Dominican.
Respectfully,
Playacaribe2
Mondongo:
I specifically remember that post, as I was also long ABX at the time.
Additionally, you had some great exchanges, links and insight regarding everything from Central Bank Certificates, Peso/Dollar rates and the IMF.
My point is (slightly off topic), there is an invaluable amount of "real gold" nuggets in the DR1 archives, contributed by the many posters who have helped make this sight a must read on all things Dominican.
Respectfully,
Playacaribe2
Check out this stunning 2002 prediction on the price of gold....
http://www.dr1.com/forums/86373-post104.html
I don't think a collapse has come (Far from it) but there is gonna be some bad time for a bit, no hay cualto en la calle lol
I think that we will see some rather dramatic steps taken by the Fed and by the Congress in the near term.
I am reminded of the steps taken by FDR in the 30's when Wall Street had a meltdown at that time.
The "Hands-off" policies of the Bush Administration have led us into this financial mess with their view of the economy through "rose-colored" glasses.
While I am NOT in favor of a complete lack of regulation of the financial market, it becomes necessary from time to time to place restrictions on an unfettered scenario of the greed of some financiers and the various methods they use to "make a buck".
The focus on the "bottom line", the outsourcing of the US industrial basees, coupled with the ever increasing demands of the trade unions with regard to "rights" has led us into the current economic situation. This, along with unregulated trade with other countries has left a trade imbalance which is overwhelming. I would almost believe that "Merchantilism" has again become the economic model of the day.
I sometimes wonder just what the "Wharton School of Economics" makes of all these effects with their "Globalization" theories. That has most certainly been the driving force behind economic policy for a considerable period of time.
High labor costs, coupled with very poor personal financial management is at the root of the housing and credit market meltdown.
This business of people spending "next year's wages" through the use of high interest Credit Cards is finally coming home to roost.
Texas Bill
I am reminded of the steps taken by FDR in the 30's when Wall Street had a meltdown at that time.
The "Hands-off" policies of the Bush Administration have led us into this financial mess with their view of the economy through "rose-colored" glasses.
While I am NOT in favor of a complete lack of regulation of the financial market, it becomes necessary from time to time to place restrictions on an unfettered scenario of the greed of some financiers and the various methods they use to "make a buck".
The focus on the "bottom line", the outsourcing of the US industrial basees, coupled with the ever increasing demands of the trade unions with regard to "rights" has led us into the current economic situation. This, along with unregulated trade with other countries has left a trade imbalance which is overwhelming. I would almost believe that "Merchantilism" has again become the economic model of the day.
I sometimes wonder just what the "Wharton School of Economics" makes of all these effects with their "Globalization" theories. That has most certainly been the driving force behind economic policy for a considerable period of time.
High labor costs, coupled with very poor personal financial management is at the root of the housing and credit market meltdown.
This business of people spending "next year's wages" through the use of high interest Credit Cards is finally coming home to roost.
Texas Bill
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"The bubble cycle has replaced the business cycle"
This article argues that boom and bust cycles have become the norm:
"The next bubble: Priming the markets for tomorrow's big crash" by Eric Janszen (Harper's Magazine)
aranoid::hurt:
This article argues that boom and bust cycles have become the norm:
"The next bubble: Priming the markets for tomorrow's big crash" by Eric Janszen (Harper's Magazine)
aranoid::hurt:No crash, only conspiracy theories-
The US will never crash. They learned their lesson from The Great Depression. They'll to continue re-inflate ad infinitum. They loan, loan, loan even if the currency suffers. As long as the deflation is orderly and The Fed is on top of the game, at worst the US will suffer a protracted Japanese style recession, something on the order of 20 years. Bear Stearns is just the beginning. Wamu has just sought 7 billion in loans to continue operating. I was talking to a Citibank exec about a month ago who told me all the US banks are in default. Just that the system is so interconnected that no one bank can fail. As a result The Fed and the US gov't will ensure that none do.
The US will never crash. They learned their lesson from The Great Depression. They'll to continue re-inflate ad infinitum. They loan, loan, loan even if the currency suffers. As long as the deflation is orderly and The Fed is on top of the game, at worst the US will suffer a protracted Japanese style recession, something on the order of 20 years. Bear Stearns is just the beginning. Wamu has just sought 7 billion in loans to continue operating. I was talking to a Citibank exec about a month ago who told me all the US banks are in default. Just that the system is so interconnected that no one bank can fail. As a result The Fed and the US gov't will ensure that none do.
Until US Citizens learn NOT to spend NEXT YEAR'S income through Credit Card pruchases, the US Economy will be in danger of the recession deepening.
That element and the ever increasing "Outsourcing" of jobs and companies to foreign countries, thereby reducing the productive capability of US Industry, the US will continue to be in trouble.
The "outsourcing" is a direct result of the ever increasing demands that the Unions have made in higher wages, full coverage health insurance and retirement. Business has just rebeled against that element and went elsewhere for the required labor needed andleft the US Labor force holding the bag.
Texas Bill
That element and the ever increasing "Outsourcing" of jobs and companies to foreign countries, thereby reducing the productive capability of US Industry, the US will continue to be in trouble.
The "outsourcing" is a direct result of the ever increasing demands that the Unions have made in higher wages, full coverage health insurance and retirement. Business has just rebeled against that element and went elsewhere for the required labor needed andleft the US Labor force holding the bag.
Texas Bill
This is a very simplistic view of a complex situation, and one-sided at that.
Companies have not "rebelled" against unions-they are by their very nature practicing predatory capitalism with the help of the federal government to gain unfair advantages in the marketplace. Regardless of your political ideology this cannot be argued.
Tax breaks, tax shelters and corporate welfare givebacks that add up to billions of dollars a year, while all of those jobs are flying out the window to countries with comprehensive histories of human rights abuses(China, just to name one), cheap labor and no benefits whatsoever.
The pimp-prostitute relationship that corporate America has with Congress and the Senate.
It seems too much to ask that the Federal Government provide affordable healthcare to our citizens(keeping in mind the ironic notion that it is OUR MONEY they would be spending) but it is OK and business as usual for over 1,200 corporations to be exempt from paying federal taxes in the very country in which they are reaping their profits.
Before you ask all of that, one has to wonder...do they know who collects their taxes? Do they know ( the gringos ) that their taxes are being collected by an "Inc." domiciled in Puerto Rico ?