Tuesday, September 30, 2008

Find the bottom

Lucky for us the $700 billion bailout did not pass. Had it passed you would have seen a rally in the market. Stocks would have risen for a few months. Following that they would have then plummeted hard and fast.

You see injecting $700 billion into the stock market, buying up the very most worthless securities to be found would artificially inflate all stocks by a large amount. But it will all be fake. It would just be another bubble. This one 100% manufactured.

Now, with the gov't out of the way (if they'll stay out), we are finally clear to find the bottom of the market. From now on, when a rally starts, with a good follow-through day, you can have much more confidence in the market going up. We now have a chance of getting back into a strong market much earlier than if the fed had meddled...more.

EDIT: If you have any interest in the economy at all, you need to be reading what this guy says.

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Friday, September 26, 2008

You are a mortgage lender

This post inspired by a comment in my previous post regarding mortgage ads. I don't know if this is going to go anywhere meaningful, so don't expect much.

Those with power don't like to share full and truthful information with the public. They're afraid we might do something about it. So this is based off of information that we are being fed.

Pretend for a moment with me that you work for a mortgage lender.

You have almost no money (or so we're being told). No capital. No cash.

Your whole existence is based around giving cash to other people to buy property with. You then collect cash from those people over time.

The average mortgage lasts around 7 years. Mortgage's do not go for the full term, due to properties being sold or refinanced.

Over the life of the mortgage you collect regular installments of cash. But at the end of the loan (typically around 7 years down the road), you get almost all of your original cash back. So everything you get payed during the regular payments is gravy (read: interest).

Right now a high percentage of people you loaned money to are not paying you back. So your getting less and less cash.

In some cases you give up on getting cash back and just take the property back. Your hope is to be able to sell the property and get you original cash back. The problem there is that it's very very hard to sell any property right now, and if you do, it will likely be for less than you originally loaned out for the property. So your cash is further dwindling.

I can see how there is a tailspin of less and less cash available to lend.

You need to get back on track of getting cash back from people. In order to do that you have to lend some out. In order to get more people to lend cash out to...you might want to advertise.

Tuesday, September 23, 2008

Is it really as bad as all this?

If the financial sector is in such dire circumstances, why do I keep hearing mortgage commercials on the radio? I keep hearing advertisements say stuff like "We'll finance anybody." I'm currently in the process of refinancing my own mortgage. No problems with finding someone willing to lend out money.

If the housing "crisis" is so bad, why do I see vacancy signs at most apartment complexes? There are plenty of places to call home for those being foreclosed on. It may not be as roomy, but they can actually afford it, instead of me paying their mortgage with my taxes.

I'm hoping you don't need any background in this comic to "get it".

Friday, September 12, 2008

Capn Libertarian

Please go read this.

The one thing I disagree with in there is the thought that people want to make their own choices. The problem we really have is that most people are lazy and want to be instructed on every last thing. Which is why the Fascist and Socialist parties continue to rule this nation.


Friday, September 05, 2008

Party Hypocrits!

This kind of cake-hole spewing rubbish is why we can't have nice things.

Democrat: We need change! No more electing of corrupted DC insiders!
Republican: We need experience! We need someone who knows WTF goes on in DC!

Obama: I choose for a VP one of the most corrupted DC insiders!
McCain: I choose for a VP one of the most inexperienced nobodies I can find!

Obama: Vote for me because I'm black!
McCain: Vote for me because I have a woman as a running mate!

By the way Heather (linked above) is essentially a parasite in my own community. Normally she drones on about how she can't imagine any better place than Utah and it's communities to raise a child, then in the next breath hating on the people who make Utah communities so desirable. I read her stuff only because when she's not being a tool, she writes some funny stuff...I guess she's kind of like Wil Weaten in that regard.

Every now and then she plugs her fingers in her ears and rants about the global warming farce or trotting out extreme cases of people who really do need help and holding them up as a norm. As if lots of people below the "poverty line" don't have dish TV! Oh the travesty!

Speaking of Palin for a second. I'd like a multi-deminsional viewing apparatus. I'd like to peek in on the deminsion where the republican ticket is flipped around. Palin as president and McCain as VP.

Barr for President!