The Golden Truth: Happy Halloween! Here's Some Spooky Quotes From Smart Investors:

Friday, October 30, 2009

Happy Halloween! Here's Some Spooky Quotes From Smart Investors:

From Bloomberg News today:

Billionaire investor Wilbur Ross Sees ‘Huge’ Commercial Real Estate Crash and billionaire investor George Soros said “bloodletting” may be coming for leveraged buyouts and commercial real estate. Soros also said “The American consumer will no longer be able to serve as the motor for the world economy.” Here's the article link: Ross and Soros on real estate

What I would suggest is that anyone thinking about buying this "dip" in real estate might want to wait for a bit - like several years. And anyone riding REIT stocks because their Raymond James or Wells Fargo advisor said, "hey man, they're good value and pay awesome dividends," might consider taking the gift of this rally since March and sell.

With apartment rental vacancies hitting a new record high in October, the housing market ready to turn back down after the summer's taxpayer financed homebuying orgy, foreclosure inventory ready to flood the market and persistently rising delinquency/default rates permeating the massive prime-rated mortgage sector, Dave In Denver says, "get ready for the next big cliff dive in the housing market."

HAPPY HALLOWEEN EVERYONE - DON'T GET SPOOKED BY

YOUR NET WORTH: STAY FROM STOCKS AND REAL ESTATE!

3 comments:

EconomicDisconnectFriday, 30 October, 2009
Dave,
Mish has a great piece up tnight about european currencies and what their issues mean for gold, pretty good read.

Halloweem horror film contest up tonight, prize will be available for the winner (s).
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U6Friday, 30 October, 2009
SRS: double short real estate.
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Dave in DenverSaturday, 31 October, 2009
Hey U6. I agree the SRS is a great way to play the real estate collapse. The problem with the leveraged ETF's, especially the double and triple leveraged ones is they use derivatives and you pay for the premiums attached to the derivatives, so you have to fairly precise on your timing or you get eaten live from premium decay.
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.