I Find It Extremely Comical

Discussion in 'Economics' started by Comanche, Sep 9, 2007.

  1. I find it extremely comical that many investors are waiting with baited breath for the Fed policy meeting, as if Ben and his crew are knights in shining armour. I think many an investor need to realize why we are in this predicament to begin with.

    Low rates for an excessive period of time will always create an assett bubble, period. Call it what you want, argue that valuation is so cheap, yada yada yada.

    Throwing money at people that do not qualify for the debts that have been given them is a recipe for disaster, every time. This is my biggest argument that the rate cut, 25 or 50, hell even 100 basis points will not re-create the loose lending standards that is bringing down the house (pun intended). Banks and other lending institutions cannot and will not give money away like before. No more paperless loans.

    Do you think a rate cut of even 100 points is going to halt all the foreclosures coming from the biggest wave of ARM resets? LMFAO!! The majority of these people can barely afford the teaser rates. Many took on these phuked up mortgages to flip the house for a profit and are now caught with no way out.

    And credit card companies are not as loose either, so if your looking for a big relief from a rate cut here, be honest with yourself, don't get blinded by your book.

    The only way to get through this period is to allow it to happen. Be wise, assess your risk profile and forget about valuations, they can drop like a prom dress, nothing is static.
  2. looks like the new abpi thread is gone too.
  3. gnome


    I should have gone to the prom... (heavy sigh :( )
  4. Only is is.
  5. ??