[Uncle Erik]

Yes, lots of good. The past five years, I've mostly stockpiled cash and reinvested dividends in securities.

The real estate market made no sense to me - prices were outstripping income and rent. And stock was still a bit overvalued.

But now, real estate values are approaching normal. And you're finally going to be able to get a decent return in the market. I'm going to put the cash to use once things settle down.

I've always been a "buy and hold" type, so, in a very microecon way, that will add some stability. I like run-down income properties, plan to look for more, and will improve them. That's a much better use of property than people flipping them every 6 months to skim money to flip more. I'll fix them up and rent them to someone who wants a nice place to live. I don't short stocks, I look for long-term value and dividends. Companies that act rationally will get my money.

I'm small potatoes, but I think a lot of other investors will be doing the same. We're just waiting for the market to shake out.

 

[amphead]

Maybe lower gas prices, which is a good and bad thing at the same time. The incentive to create new sources of energy, come more out of necessity than what is the best thing to do in the long run. First time home buyers might have a better chance, as long as jobs and wages don't continue to deteriorate. I would have said cheaper food prices, because fuel prices have dropped, however this appears to be a new period of inflation. Manufacturing goods cheaper in the U.S. , which would stimulate the manufacturing sector, assuming the demand doesn't decline too much. However, demand is likely to slide if inflation gets out of control.

 

[captainobvious]

Hopefully it will make people start to investigate exactly how their financial system operates. If we're really lucky, they'll start by looking at the dumb Federal Reserve.

 

[Laptopia]

I have been periodically checking housing prices where I live (about three miles from Western border of Washington DC), and I think prices still have a long way to go (down) before even approaching affordability for most people.

Even after a modest drop in prices this year, it takes a $100K down payment, perfect credit, and a very stable employment history to get into even a very modest house. Realtors are, unbelievably, still stepping on people trying to use FHA and VA mortgages.

Many sellers remain greedy dreamers, but may come around to reality after their house has been on the market for a year with no credible offers.

 

[Laptopia]

Quote:

Originally Posted by captainobvious /img/forum/go_quote.gif If we're really lucky, they'll start by looking at the dumb Federal Reserve.

This gave me a smile. Please ask one of the candidates about this on live TV, and don't change your wording.

 

[Seaside]

Quote:

Originally Posted by Robert Linthicum /img/forum/go_quote.gif I have been periodically checking housing prices where I live (about three miles from Western border of Washington DC), and I think prices still have a long way to go (down) before even approaching affordability for most people. Even after a modest drop in prices this year, it takes a $100K down payment, perfect credit, and a very stable employment history to get into even a very modest house. Realtors are, unbelievably, still stepping on people trying to use FHA and VA mortgages. Many sellers remain greedy dreamers, but may come around to reality after their house has been on the market for a year with no credible offers.

This exactly is true, at least here in northern virginia.
Maybe, that's why those politics didn't realize what's going on in the other parts of nation?

 

[h4n9m4n]

less money in the economy, value of dollar goes up, prices fall, consumer benefits

 

[demoNMaCHiN3]

Quote:

Originally Posted by h4n9m4n /img/forum/go_quote.gif less money in the economy, value of dollar goes up, prices fall, consumer benefits

except for the $700 billion that was pumped into the economy last week and the other $630 that was pumped the week before that ( Bloomberg.com: Worldwide )

I guess the good side is that stocks are cheaper and oil is at $77.70 a barrel, although this price isn't reflected at the pump (cheapest here is $3.59~ when it should be under $3 :/)

 

[nickdawg]

Worried about retiring?

STOP!

Once the 401Ks go up in smoke and Social Security goes bankrupt, retirement won't even be an option.

I'd like to punch that bank exec in the face as well. For fxcking up everything now and leaving a huge mess for us younger people to clean up.

 

[Zenja]

You guys get stuff cheaper from us in Canada now. The exchange rate went quite "ouch" recently.

 

[Laptopia]

Quote:

Originally Posted by Seaside /img/forum/go_quote.gif This exactly is true, at least here in northern virginia. Maybe, that's why those politics didn't realize what's going on in the other parts of nation?

Yes, the "DC Metro Area" is proven quite insulated from economic downturns in the past, but maybe this time will be different. Even after the dot-com bubble burst, spending and building continued here apace.

The immense cash flow from the defense contracting services infrastructure here keeps the whole house of cards intact, and the unemployment rate miniscule. If a person is clearable and has a pulse, he's employed.

 

[White Mike]

Quote:

Originally Posted by nickdawg /img/forum/go_quote.gif Worried about retiring? For fxcking up everything now and leaving a huge mess for us younger people to clean up.

Would those be the same "younger people" that have record amounts of personal debt, multiple credit cards and think it's perfectly fine to buy everything on credit without paying it all back in the same billing cycle?

 

[F107plus5]

We have a better class of people wandering around our local Wal-Mart now-a-days since many of these folks stopped doing most of their shopping at the Mall. I guess that's one advantage to the downturn; a better class of fellow shoppers. Of course if they start buying their clothes at Wal-Mart, we won't be able to recognize them for long.

I'd really be a lot happier if a lot of the kids TV shows would put the brakes on trying to keep the kids asking us parents for the very latest in expensive consumer products for the kids though. All our kids have their own cell phones now, now they just want their own Plastic!

...on another subject; I also wish the kids shows would stop always making fun of the kids who like Math and Science as being the out-of-touch Geeks with no social skills or personal relationship values or understanding whatsoever. It's like that Commercial that aired a couple years ago about some products designed by Engineers who have more Degrees after their names than they've had Dates!

It's not funny! My kids pointed at me and laughed!

Seriously; I read an article just the other day that pointed this out. That kids; especially Girls, but even Boys, are having a hard time even admitting to their friends that they like Math because it's considered a bad thing and leaves them open to ridicule and consternation due to the aversion to Math presented in the Popular Culture prevalent in the US today and during the past couple of decades.

I'm pretty sure that the problem in TV shows and Movies has more to do with the writers of the shows basically having BA degrees rather than BS degrees and of course having the writers being more interested in the Arts rather than the sciences would have them writing more about what they're familiar with.

But I was glad to see the article. I'd been complaining to my Wife for years that TV shows were really giving us Engineering types a bad name.

She just considered it a lack of "Street Smarts" on my part.

 

[Hardwired]

Quote:

Originally Posted by wavoman /img/forum/go_quote.gif A panic is to the economy what a forest fire is to the forest.

Superb observation. As far out of control as greedy capitalism had become, this was the inevitable and necessary backlash. I just hope it burns deeply enough into the weeds and brush to leave the landscape clean for smart investors. There will still be a few mature trees left to start over with.

 

[MASantos]

Economics

on a side note:

guys lets keep this thread clean so that it doesn't get closed!