Global Meltdown

[Dagabond]

Powerball Jackpots tomorrow night....

[hypnodoc]

So is it a good time to sell my house with the way the world market is today??

I've owned it for 3 years, payed minimum repayments on a 5 year fixed loan term with 2 years to go, paid $330,000 & today it's worth ~390,000, I'm 23, have no kids or partner & a $20,000 loan on my car. I'm sh*tting myself watching the news lately & don't know what I should be doing??

Any help please

For what it's worth 03 stick with it, at least you have one (A HOUSE). I would expect a lot of the equity to evaporate back into the same void it came from, but it sounds like you are in a good position and alot better off than many. Its hard to know what to do exactly, and even harder to listen to all the so called experts, because if they were that clever they would have all seen this coming. I was watching it unfold in London last week, and the best advice I heard was this 'If you investment advisor is under 40 sack them immediately as they havn't seen anything like this before, they have never given long term advice worth anything, and are presently in shell shock.

I think we are only about 20% to the reality of this but its been a long time coming and at least Aus in slightly better position of many countries. Hunker down, enjoy your car, or you could also try Dagg's option of the new "Great Australian Dream" winning lotto or Power Ball. You have to also consider that although all quarters are in denial, like they were for 18 months about the present debacle, if commodity prices don't come back up of which in reality there is little chance in the short to mid term, then the great WA WA land mining boom will sink back into the dust from whence it came.

Eventually it should balance out eventually but stastically we are (the so called global economy) is about 400% worse off than the times of the great depression, so a lot of people are going to go very quickly from the Penthouse to the Sh1thouse, we still havn't felt any real impact in the employment or the mortgage de fault areas as yet. But Krudd and his mod will just buy up or guarantee the valueless mortgages to keep the cash flowing through the banks. They are already hedging their bets. I have had offers of credit card limit increases from ANZ, Commonwealth, and Amex since last friday so they must be trying to shore any good payers. I think we are in for a very interesting 12 months. Can't help wondering what all the investment advisors and stock brokers are going to do when their jobs are gone considering most of them would have been silly enough to believe their own folly. Just be glad your not coming up to 60 and watching your savings, shares, and super go down the poo poo shute.

The first bank going down the gurgler in Aus is going to be something to behold, amazing how bank west halved in value in the last 3 weeks and is being fire sold to the Commonwealth for 2 billion odd dollars when last year they reckoned they were worth around 40 billion. I read an economic opinion 6 months or so ago warning that the proposed merger of Westpac and Suncorp could be best described as 2 staggering drunks trying to prop themselves up. Seems it was true. I have reduced all my Aus cash accounts to 10,000 and stashed the rest in a more safe and accessible place. You have to remember our entire domestic economy is in the hands and at the mercy of the international clowns who either stupidly or intentionally caused this and history will show it is a lot bigger than a simple market correction. It seems you are young and have been wise, so just sit back and watch the show, its good comedy watching wall street kids, political experts and politicians on the news squirming in their own deception. The European markets seemed to bounce back a bit tonight, just as wall street did the other day, then following on the news I saw Krudds financial genius Swan saying he had GRAVE CONCERNS for the Australian economy. Let the games begin

Edited 08/10/08 02:43 PM by hypnodoc

[Guest]

I just don't want to hang on to it if it drops below what I paid for it, then I have to sell for some reason & be thousands out of pocket with nothing to show for it! I've been saying I'm going to ride it out for the past few months while all this has been unfolding but now I think I'm getting cold feet...

If I was a little more established I'd be fine but I've only just started earning decent $$$ so have no savings, hardly anything payed off the house & a new $20k car loan! Might not seem alot to some but it's just a little scary being under it all with no options to bail myself out if it goes sour.

[straughsberry]

If you are going to hang on to it, be prepared to do so for quite a while.

Like Y2K??

Bah, why worry about sh*t you have no control over? Let's just all suck it in, man up and f*cking deal with it!

Pump up the boost and lets go for a cruise cause there ain't nothing we can do about it. Except sell my house. Which BTW is on the market this week. So my maths goes a little like this:

Sell house to liquefy assets = 28psi and 500rwkw

BTW, I'm not selling my house as a knee-jerk reaction to the global economy crisis. I just want more boost...

Edited 08/10/08 04:26 PM by straughsberry

[hypnodoc]

Buy is an interesting situation at the moment, as I am sure all can see. On one side you have the media, politions and masses who have been fed propoganda that any money invested in the sharemarket will be lost. But this is not the case. The majority of mum and dad investors invest under poor advice or on a hunch, a tip from a neighbour or raw emotion. This is like a lottery yes. But Warren Buffet, the most successful trader ever, has always stood by the idea tht you should invest in what you know and understand. Did he buy in the dot.com boomno, he didnt understand how companies with no assets were worth millions of dollars, that all came crashing down, caused largely by uneducated investors looking to make fast money in companies which they have no idea about, in the long run it is proven that this doesent work. This becomes like the lottery. And the same people wwre putting outdooms day senarios then, but hey we survived. Look at just this week, buffet is back into the market, and buying up.3bn in ge this week, and others. This is significant, as people take notice. I think this may lead to more investment next week as people follow his lead. I will agree that the global economy has been poorly managed and dued to greed and excessive levels of debt we are in trouble, but seriously why do people listen and believe everything they learn in the media. I personally believe that what happens in asia is far more important now, and that that the markets wont be the same for some time, But dooms days senarios etc are enough to make you laugh, and I think that in the long term, you will see the cycle continue and the economy will be in the same state it was before, it is just simple economics. Just dont look at your super accounts, and enjoy the last rate cut and watch from a far as we cant change what happens no matter how much we want to.

Well you obviously have a really good grasp of the situation bart 'NOT" Simple economics prooved about 2 years ago that the entire joint was rooted, now they proove its rooted beyond redemption for about 80% of the population. The artificial build up was all based on lies and greed as are the present desperate band aid lies and deceptions

If Warren Buffet told you to jump off the roof WOULD YOU?

Edited 08/10/08 11:21 PM by hypnodoc

[tab]

Probably would actually....being the richest bloke in the world and all he probably knows a thing or two about money!

[hypnodoc]

2nd richest TAB, and that's only in the western world, and before he threw his 8 billion into the Abys (if that's how you spell it)

[TUFXRT6]

Bart I personally think Warren buffet is a smart investor and definetly has the runs on the board to PROVE he is one of the MOST SUCCESSFUL INVESTORS IN THE WORLD.

It is interesting that about 24 months lead up prior to the current situations Mr Buffet moved to become cashed up for any "ideal" buying situations.

The assets Mr Buffet is buying is deaply discounted & if large investors have the money it will be great buying going forward.

As much as I dont like Governments influencing markets I do however thank them at the moment for stoppping short selling otherwise the equity markets would probably be much worse.

I am a buy low, sell high kind of person. So selling a house at the moment is not a big issue as long as you think property markets going forward may deteriate lower.

Regards

TUFXRT6

Edited 09/10/08 01:27 AM by TUFXRT6

[harvyk]

Well you obviously have a really good grasp of the situation bart 'NOT" Simple economics prooved about 2 years ago that the entire joint was rooted, now they proove its rooted beyond redemption for about 80% of the population. The artificial build up was all based on lies and greed as are the present desperate band aid lies and deceptions

If Warren Buffet told you to jump off the roof WOULD YOU?

Not quite, the current market is built up on easy credit. People have invested money which they didn't have, having $100,000 sitting on the stock market is going to give you a much higher return on your money than $20,000. And this is all and fine when the stocks are up. But now the market has fallen a lot of people have been left with one of two options, place more of their own money in to ensure that loan ratios stay within the banks limits (which unless you have lots of lose cash sitting around you can't really do), or sell their shares and unfortunately, now is not the time to sell your shares.

Investing in such a manner does not give you a solid foundation to grow on. Like with gambling you should never invest what you can't afford to lose, however somewhere along the way gov'ts have allowed the banks and other credit providers to act more like loan sharks. Proof of this is the fact that credit providers have issued NINJA loans (No Income No Job and no Assets), and have given large loans in the form of low or even no doc loans. (Yes I earn that much, honest. These types of loans have been called liar loans in the US).

So why did credit providers take such risks? Loans like any other "investment" can be brought or sold, so it's fairly easy to hide bad debt amongst a sale of good debt. This means that bad debt could be passed onto some other sucker, and the credit providers knew it. Plus the US is known for bailing out companies and bad debts, it's done it before (this is where Freddie Mac and Fannie Mae come from), and it's obviously done it again.