Where would you invest if you had extra money
Jump to Page:
< Previous [ 1 ] [ 2 ] [ 3 ] [ 4 ] [ 5 ] [ 6 ] [ 7 ] [ 8 ] [ 9 ]
Posted on: 25-11-08 20:28:17
jonava, this is great and make sense. I heard something similar long ago form a cholay wala.
Regarding the US dollar, why it has to be USD though? Isn't the US going into recession and so does other countries I guess too. It is a bit confusing but maybe the US agriculture is stronger than other countries and at least can feed its people if no luxury is available. Not sure, just guessing at this time. Any economist, real economist not the one's who guess using regression Linear not even multipple) and always make predictions based on trends of curve.
Quote:That is not the reason.
Originally posted by bc2on
Regarding the US dollar, why it has to be USD though? Isn't the US going into recession and so does other countries I guess too. It is a bit confusing but maybe the US agriculture is stronger than other countries and at least can feed its people if no luxury is available.
US agricultural production cannot feed its own people - they import most of the food anyway, including basic fruits, vegetables and grains.
I believe the USD is not spiralling down because large institutions and other countries keep buying it.
China holds several trillion of USD debt, and so does Japan.
Middle East oil-producing countries are the same.
And all these recent bailouts since Sep are being sold off as US treasury debts to other countries, who are only too happy to buy it.
The recession is the creation of US, but it is everybody else's problem.
If the US goes down, it will take almost everybody else down.
If the USD spirals downward, all the debt holders may dump their USD debts into the market, triggering a gigantic collapse, which can essentially end the modern economic system, taking us back into the feudal days.
Trust me, much as we hate and detest the US for putting us into this situation, it is in everyone's benefit for their economy to recover and for their consumerism to continue.
-----------------------------------------------------------------
"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
PROBLEM: At this point no-one know how govt. can stop housing price going down and keep people inside their home so they can pay their mortgages?
Bail out is not going to work why.. No-one is talking real problem and punishing them who created this problem.
People used houses as banks, banks used houses as a default swaps, default swaps are now worthless. Most of the people are living paycheck to paycheck than what VASULI dept. ( Bhai/banks) can do to these people. These people have nothing to loose as everything is financed by banks or credit card like home, lcd, car, vacation. 80% people are just nothing but walking debt or credit card with negative value.
As long as housing keeps falling, things will get worse and bailouts continue. Again, the consumer is the economy. The economy is in trouble.
Biggest problem to govt.:
Q: Why would people pay mortgage when their mortgages are more than house value?
Q: Why would people pay mortgage when they can get govt. assistant if they stop paying the mortgage?
Q: Why would people buy new/used home when price are falling everyday?
We will be in same shoes very soon. 40-50% price down.. YES it can happen. We already had 20% hit.
Quote:
Originally posted by pratickm
Quote:
Originally posted by bc2on
The recession is the creation of US, but it is everybody else's problem.
If the US goes down, it will take almost everybody else down.
Trust me, much as we hate and detest the US for putting us into this situation, it is in everyone's benefit for their economy to recover and for their consumerism to continue.
these are good questions and I have some answers rather opinion, please see below:
Biggest problem to govt.:
Q: Why would people pay mortgage when their mortgages are more than house value?
A: Some people care about their credit for the future since credit is worth more than we think. Also they may just like their house.
Q: Why would people pay mortgage when they can get govt. assistant if they stop paying the mortgage?
A: This is absolutely right and I am against specific help because it also unfair to those who never bought. However, one house owners may need some relief with interest rates. Those interest rates were ridiculously higher. Some credit cards companies should be put in jail.
Q: Why would people buy new/used home when price are falling everyday?
A: One can live in a house even if the price drop what would one do with stocks, especially when the company goes bankrupt you got nothing. You are the CEO of your property and can handle it the way you want it to.
We may see a drop but soon it will come back up since the new construction will get hit the most and will stop, the influx of new immigrants will however, continue which will help stabilize, I believe.
Under the new circumstances I opted fo precious metal, mining, energy and equity mutual funds. Most of them are doing pretty good. I also invested heavily in oil exploration after the dip like AXC.to and ngd.to and is giving me a very nice return. So thank you every one and I will keep u all posted. Hopefully, it goes well in the future
Advertise Contact Us Privacy Policy and Terms of Usage FAQ Canadian Desi © 2001 Marg eSolutions Site designed, developed and maintained by Marg eSolutions Inc. |