The price appreciation was caused by liar loans and people flipping houses the day they bought them. With the mass marketing of interest only loans people who could never remotely afford a home were blind to the price and were standing in line to compete to buy homes. I live in Florida I know for a fact. I saw it happen. With out the easy money home prices would have gone up the usual 3-6 % per years as they always have.
As far as your underwriting “lesson” that was brushed to the side during the crazyness. Big banks were buying everything they could and all involved ( agents, mortgage brokers, lenders, appraisers )were blinded by greed.

now you’re just being a d*** b/c I disagree. I’m done with you . See yah

Deflation is the major concern, by no stretch of the imagination have we beat deflation yet. That is why all policies are in place right now. Housing for example…We were flooded with supply that now sits off the market in bank books. We have small increase in demand due to cheap money however, place those homes on the the market and POW BOOM BLAT!! Prices will fall like a ton of bricks. that is deflation. Why is a STRONG dollar govt. allowing US dollar to fall? Keeps the cheap money trade alive. US follows their “supposed” policy BOW BOOM CRACK!!! Prices fall like a ton of bricks!! Again deflation. Govt. spending…Cash for clunkers, home buyers credit etc. all examples of combating deflation, or creating a false demand by making products cheaper for the consumer( deflation ) with the use of YOUR tax dollars. Either way, the fight is still against DEFLATION

OK LSUALUM,

[quote=howboutshoeshine]Deflation is the major concern, by no stretch of the imagination have we beat deflation yet. That is why all policies are in place right now. Housing for example…We were flooded with supply that now sits off the market in bank books. We have small increase in demand due to cheap money however, place those homes on the the market and POW BOOM BLAT!! Prices will fall like a ton of bricks. that is deflation. Why is a STRONG dollar govt. allowing US dollar to fall? Keeps the cheap money trade alive. US follows their “supposed” policy BOW BOOM CRACK!!! Prices fall like a ton of bricks!! Again deflation. Govt. spending…Cash for clunkers, home buyers credit etc. all examples of combating deflation, or creating a false demand by making products cheaper for the consumer( deflation ) with the use of YOUR tax dollars. Either way, the fight is still against DEFLATION

To: Shania Twain, Iceco1d, LSUalum, Jebediah, and Morea: the discussion on the mkt allowed you all to use your brains and it was an ok forum. Guess what it’s me MELETIO. I though you losers were not debating with me anymore. Suckers !!!

To: Shania Twain, Iceco1d, LSUalum, Jebediah, and Morea: the discussion on the mkt allowed you all to use your brains and it was an ok forum. Guess what it’s me MELETIO. I though you losers were not debating with me anymore. Suckers !!!

To: Shania Twain, Iceco1d, LSUalum, Jebediah, and Morea: the discussion on the mkt allowed you all to use your brains and it was an ok forum. Guess what it’s me MELETIO. I though you losers were not debating with me anymore. Suckers !!!

TOLD YOU GUYS. IT’S OK, PRETEND MELETIO. I TEXTED EVERYBODY, THEY DECIDED TO KEEP FCUKING WITH YOU.



LET IT RAIN!!!

a week ago.    I love it.

so much cash.   so many missing it.

4% pullback bears start telling us they told you so.

This is really wonderful.

"lurking doubts launch sell off"



bwahahhahaahhahahahahahahahhahahahahah

for six mf days hahahahahahahahahaha



look at the GD picture. a week and new HIGHS   how funny



bric





Lurking doubts launch a sell-off

Weak consumer data deflate stock market by more than 2 percent



After closing above 10,000 this month for the first time in a year, the Dow tumbled 249.85 points Friday. (Richard Drew/associated Press)







By Renae Merle

Washington Post Staff Writer

Saturday, October 31, 2009



Wall Street recorded its sharpest drop in six months Friday as investors, who have been groping for evidence that an economic recovery is gaining steam, responded to renewed signs of weakness calling into question how vigorous the rebound might be.



The stock market was off more than 2 percent after the government reported a significant drop in consumer spending, which has traditionally been the engine of American economic growth. Investors have been looking for consumers to help propel the economy forward once several government programs that have jump-started the economy expire.



Those initiatives, including the popular “Cash for Clunkers” program, were behind the surprisingly strong quarter of growth this summer. After the government reported Thursday that gross domestic product was up 3.5 percent, the stock market soared even as some skeptics warned that it might be difficult to sustain strong economic activity.



Just a day later, the big gains were wiped away after a new batch of data underscored those lingering concerns, showing that consumer spending fell 0.5 percent in September. Although some kinds of consumer spending showed new signs of life, overall it was the biggest decline in nine months. The spending accounts for more than two-thirds of economy and has not shown convincing evidence of a comeback as unemployment rises.



Overlaid on those worries about the broader economy are gnawing doubts regarding the tremendous run up in stocks over recent months. The market has jumped more than 50 percent since reaching a low point in March, but now investors are questioning whether stocks have raced too far ahead.



Fear has crept back into the market. The Chicago Board Options Exchange’s Volatility Index, which measures how much investors expect stocks to swing, soared 24 percent Friday to its highest level since July.



Stocks were down in all major sectors Friday, including all 30 companies in the blue-chip Dow Jones industrial average, which suffered its largest point drop since April. The Dow reached a milestone earlier this month when it closed above 10,000 for the first in more than a year. But it fell 2.51 percent or 249.85 points Friday to close at 9712.73, nearly where it started the month.



The Standard & Poor’s 500-stock index fell nearly 3 percent Friday, leaving it down on monthly basis for the first time since February. The S&P was off 29.93 points to close at 1036.18, while the tech-heavy Nasdaq composite index slid 2.50 percent or 52.44 points to 2045.11. The Nasdaq was down 3.6 percent this month.



The sell off on Wall Street weighed on European markets, which lost steam Friday afternoon. London’s FTSE fell nearly 2 percent, while the Dax in Germany tumbled more than 3 percent.





“A lot of professional traders have made their bonuses already. Why would they want to take on additional risk at this time especially when they have serious questions about the fundamentals of the economy,” said Matt McCormick, portfolio manager and banking analyst at Bahl & Gaynor Investment Counsel, an investment management firm.



After rallying for months on expectations that the economy would improve, investors are now taking a critical look at the evidence. Of particular concern is what will drive the economy next year as economic stimulus measures wind down, analysts said.



“Investors are trying to look past that, the stimulus, to see what is it we’re ultimately going to be left with after the government isn’t there to prod spending through,” said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.



Instead of continuing to drop, stocks might level off, Ablin said, and then "tread water while we wait for incremental improvement in the economy and [corporate] profits. Investors are looking for organic growth in the economy."



While analysts had expected spending on autos to slow once the Cash for Clunkers program concluded, the slump in this sector still highlighted how anemic the consumer economy remains.



“The government handed the ball off to the consumer and the consumer fell on it,” said Robert G. Smith, chairman of Smith Affiliated Capital in New York. "This is a function of there being no jobs and wages going lower."



The sell-off on the stock market also reflected a report released Friday showing a decline in consumer sentiment this month, analysts said. The Reuters/University of Michigan consumer sentiment index fell to 70.6 in October, compared with 73.5 in September.



Some of the decline in stock prices could also reflect short-term profit taking after Thursday’s gains, analysts said.



Many high-quality stocks are still cheap, according to Sacha Millstone, senior vice president of investments at Millstone Evans Group of Raymond James & Associates.



“Before, the market started to rally because there were signs of an economic recovery. We realized it wasn’t going to be Armageddon after all, but people questioned whether the recovery” would materialize, she said. "Now we are in an economic recovery and we’re questioning whether it is really going to be a strong recovery, what is it going to look like?"







After closing above 10,000 this month for the first time in a year, the Dow tumbled 249.85 points Friday. (Richard Drew/associated Press)

“Many high-quality stocks are still cheap”, according to Sacha Millstone, senior vice president of investments at Millstone Evans Group of Raymond James & Associates.

fritz? my man



have you come from the dark side?

[quote=howboutshoeshine]OK LSUALUM,

Anybody curious as to what time the market is going to tank today?

Anybody curious as to what time the market is going to tank today?

[quote=Moraen]Anybody curious as to what time the market is going to tank today?

My crystal ball says reduce equities to the lower end of your clients asset allocation models.

My crystal ball says reduce equities to the lower end of your clients asset allocation models.

I called s&p500 to 1000 by year end at the end of February. I was actively moving overweight equities. In the last month we have begun to take our profits both for protection of clients portfolios and to give them a chance to feel good about making some money and cashing it in. It may not be bold, I believe it is the right course of action.

I called s&p500 to 1000 by year end at the end of February. I was actively moving overweight equities. In the last month we have begun to take our profits both for protection of clients portfolios and to give them a chance to feel good about making some money and cashing it in. It may not be bold, I believe it is the right course of action.