Jim Cramer says housing market is in armegedon

[Nitro Express]

Originally posted by Ellyllions
Nitro, no disrespect, but that kind of complete freak out doesn't appeal to me. Guess I'm different. My ears shut down and I'm done.

So the Chinese are beginning the dump of the dollar. I'd heard that it was coming, especially after I heard that Iran was doing it.

I've also heard that when the Chinese dumps the dollar completely, we go into economic turmoil....

Nobody is sure how much debt the US has. Some firm estimates $72 Trillion if you count in all the unaccounted for govt. pensions, medicare liabilites and such. We as tax payers can either pay it or foriegn investors can make the minimum payment for us and we just pass the problem on. We've been playing this game since the early 1970's. It worked because the US had the reputation of being the most powerful and richest nation on earth. You saw suitcases of dollars in movies and television shows. The illusion became real. In truth, the dollar is backed by nothing but image.

As soon as the image tarnishes people invest in something else. The problem for the Chinese is they are awash in dollars. They have enough cash to buy all the commercial, agricultural, and residential real estate in the US! We would get hurt if there was a major run on the dollar. Since we are their biggest customer, I doubt the Chinese are going to dump all the dollars but they are converting some into gold and Euros. Why? The dollar is losing value and gold is holding it's own and probably will go up in the future.

[Nitro Express]

Originally posted by scamper
I hope he's worth more than that. If our economy goes to crap it will be because people don't know how to manage their money. It's all about credit and hoping they will hit the lotto. It's easy just don't spend more than you have, pay cash, do a 15 year mortgage on a house you can afford.

That's part of it but it also means parking your savings where inflation won't eat them up. The only place you really can do that effectively is in stocks. In the past you could just invest in a S&P 500 fund and reap the growth but you would have lost your shirt if you stayed in around the turn of the century.

It's a different game now. You just can't park your money in a bank and beat inflation. You have to be aggressive but that also means more risk. It's a no brainer China is where the new growth is happening but how do you invest and do you want to?

We live in the world where the economic growth is happening in a communist country we can't afford to trust. That makes an interesting paradigm shift. We can't invest like our parents did. It's a differnt game. It's more complicated now.

[Blackflag]

Originally posted by Nitro Express
In the past you could just invest in a S&P 500 fund and reap the growth but you would have lost your shirt if you stayed in around the turn of the century.

And then gotten your shirt back a few years later. But that's always been the story with stocks. I don't think a whole lot has changed, you just need to diversify more now.

[Nitro Express]

Originally posted by Blackflag
A low dollar is a good thing. Not sure what people don't get about that. A high dollar only benefits wealthy people, that's why they have you thinking the opposite.

It's a good thing if you have raw resources, but the US has closed down steel mills and mineral production. We have some of the largest phosphate reserves in the world but Monsanto and FMC have closed shop here to exploit Indonesia and Morrocco.

When you have to pay the Belgians Euros to get the steel you need to fabricate your made in USA stuff a low dollar hurts. We fucking have to import raw materials because our mines, steel mills, chemical plants, and mineral production are gone. The factories have been torn down and the steel sold off. The mines are flooded.

[Eddie's Booze]

Originally posted by Nitro Express
The Chinese are starting to dump the dollar for Euros and gold. Both Russian and China are building up a gold reserve. The Euro has it's own long-term problems but right now is a better currency than the dollar.

The Fed jacking rates and tightening the money supply trying to hedge inflation but it's too late. That should have been done in the mid 1990's before real estate got too out of hand. Greenspan got us in this mess. The thing is the rich guys don't want to lose their dollar worth so they are keeping rates higher but they didn't buy a variable rate mortgage either. It's onlt going to get worse and whoever is in office now will get the blame. George W. Bush will go down in history as the worst US president, who not only got us stuck in Iraq but caused a major economic downturn.

Euro.....

No this is the WAY....



:D

[Blackflag]

Originally posted by Nitro Express
It's a good thing if you have raw resources, but the US has closed down steel mills and mineral production. We have some of the largest phosphate reserves in the world but Monsanto and FMC have closed shop here to exploit Indonesia and Morrocco.

When you have to pay the Belgians Euros to get the steel you need to fabricate your made in USA stuff a low dollar hurts. We fucking have to import raw materials because our mines, steel mills, chemical plants, and mineral production are gone. The factories have been torn down and the steel sold off. The mines are flooded.

That's true...but that's true regardless of where the dollar is at. A low dollar makes it easier to sell whatever your selling...even if it's accounting services, or whatever.

In fact, a low dollar would make it less profitable for companies like Monsanto to buy things from overseas - maybe they'd bring some of that back.

Bottom line...high dollar only helps the people with big investment income.

[steve]

This easy credit problem and housing bubble is not only in "The States" folks, housing prices in Great Britain have gone through the roof in much the same manner.I'm not saying the US doesn't have fundemental problems in terms of losing our manufacturing base, etc, but this housing bubble is about to hit Europe as well.

The whole world economy is tied together, and the US is still the biggest lynchpin. Other nations, China in particular (since we buy most of the shit they make), have no reason to see our economy fail - in fact quite the opposite.

We are now in a recession, but the whole world economy is going to pause with us. I think there may be a short "run" on the Euro and Gold, but once this recession starts spreading folks will come back to dollars because they will be comparitively cheap.

Of course, this is all best case scenario - but you know, I'm just an optimist like that.

[ROTHisGOD]

OMG!

[Nitro Express]

I have a few after dinner martinis in me now and all I see is that chick Jim Cramer is crying to.

All I'm thinking about is bending her over the desk and driving one home.

Alcohol tends to knock one's intellectualism down and elevate one's basic needs. LOL!

[BITEYOASS]

Originally posted by Nitro Express
All I'm thinking about is bending her over the desk and driving one home.

Alcohol tends to knock one's intellectualism down and elevate one's basic needs. LOL!

While your at it, yell at Cramer: you have no idea what it's like hittin this poon tang, NONE!