All Forum Posts by: Kevin O'Brien

Personally I think they should of allowed AIG to fail and let the insurers who weren't speculating the ability to pick up their assets for pennies. That's why capitalism works when less regulated. Money should flow to the productive away from less productive

Originally posted by Taz:

As for the stock market in general, you can't really compare the diversification in the asset markets of today with the lack of it in the 1920's leading up to the crash in 1929.

What is "happening" in the markets is more hype than reality. The credit default swap market is the tail wagging this dog at the moment.

Taz,

I did not have the patience to cut and paste all the assertions you made. I believe you may be a little off. The numbers you were quoting about unemployment are completely untrue. You need to look at the change in unemployment rating since the Clinton administration. The pool of unemployed workers was intentionally shrunk to not include those "not looking for work". If you live in an area with no jobs, then the government does not count you, if you do not go to the unemployment office. Does that mean you are still not unemployed?

Let's look at the CPI. Under Greenspan they began twisting CPI. Instead of a steak to steak comparison they said in economic downturns people buy hamburger instead of steak so thus the CPI has gone down or is unchanged. That would not be exactly true now would it? The cost of steak has risen now I am forced to pay more, thus the CPI has changed.

All these takeovers are socialism/nationalism. Call it whatever you want but if it walks and quacks like a Duck.

I think you need to understand that all this money they are creating does nothing but add to inflation. You can't add more of something without diluting the existing. I recommend reading Theory of Money and Credithttp://www.econlib.org/library/mises/msTContents.html or What Has Government done to our money http://mises.org/money.asp

I guess my first question is why has the home appreciated in last 2 1/2 years. He bought it around the peak of prices and now you are paying roughly 8% more than he did and the home needs work? I guess I don't understand the price increase

I would think after the events of the last week that amount may been been raised. I would not be surprised if they asked for 2million in cash. Right now is a tough time for credit. As we are seeing many banks have over lent.

I would have to say: Think and Grow Rich N. Hill is right up there.

The E-Myth Worldwide -From an overall business perspective

I used to dabble with the Forex, now it is mainly trying to find websites to buy and or build. Would like to set up some nice recurring payments using websites but not much luck so far, only 1 turning a profit

Originally posted by Tracy Harmon:

I just did some research on median income vs median home prices. From 1968 til 1995, the median home price was about 2.7 times median income. In 2005, the median home price was 4.85 times median income. Using the historic data which are based on sound lending practices, the median home price right now should be about $135k. The actual median price right now is $206k. Given the fact that lenders have gotten back most of their sanity, prices will be falling for quite some time now. Thinking that "we've hit bottom" based on intuition, or ouija boards or what your Aunt Martha's cousin's realtor said is probably not a great idea.

Tracy that is an excellent comparison. I am with you, I think we are in for a slide for at least next 12 months. Albeit if inflation continues to rise as fast as it has then I will not be shocked if home prices seem to fall less.

Hey Jeremy,

Fellow newbie from NC here also. Good luck with your investing plans