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Market Meltdown

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You have to see this to believe it. Jim Cramer loses it on CNBC.

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!!!!!!

 

 

Wow man that is rough. He is struggling.

 

I work in the mortgage industry...and in my opinion, people shouldn't have been so greedy. Just like in trading- Pigs get slaughtered. I am not trying to be callous, but hey, if you go and act like these homebuyers did in the trading arena, you are going to get your @$$ handed to you and someone is gonna take your money because you are not using your brain to make educated decisions.

 

The company I work for doesn't do subprime lending and we don't have any issues at all right now. We do not lend on those crazy terms that you see on TV and in the news and every time you log into Yahoo Mail.

 

I see it all day and every day in the lending industry ( Consumer lending and mortgages) it all boils down to people overstepping their means. This has been happening for years and years and years, and now the market is suffering and the country is in chaos because of this debacle.

 

As much as I believe the government should have said something to consumers or prevented the misleading advertising from these mortgage companies. It all boils down to personal responsibility. If you make $45,000 a year, you know damn well you can't afford a $450,000 house. If you have to do stated income and embellish your income levels to get into a house, then you know damn well you can't afford it. It is common sense, and now all these people with a victim mentality want to blame the mean old mortgage companies for their financial woes.

 

Sorry but where I come from, you read contracts before you sign them. Period. Nothing happened to any of these people on their mortgages that was not on the contract and closing docs they signed.

 

Shame on the predatory agencies and the government regulators that fell alseep at the wheel and allowed this to happen, but any way you cut it- no one signed the contracts but the buyers. And now its time to pay the piper.

 

But this is no different than trading the markets- YOU are responsible for your financial decisions. If you want to shoot from the hip and make dumb trades without having a solid basis, then YOU take the loss and its no one else's fault, no matter what the course or book you bought told you to do.

 

Just like in trading- if you blindly follow what someone else tells you, you will get fed to the wolves.

 

It pays to do your own due diligence, whether trading, shopping at WalMart, or buying a house.

 

Sorry if this sounds callous, I don't mean it to sound that way. I just have a unique perspective, as I work in the industry, and I see some major parallels to trading.

 

P.S. I seriously suggest you all check out the movie "Maxed Out" it's a documentary about the credit situation in America and how it is so political and predatory. There are some major eye openers about how the government is mixed in with the lobbyists to set this whole game up. Once again though- No one can make you sign anything but yourself. You have to think to survive in this world.

 

Mods please delete this if it is too offensive, I just feel very strongly on this issue and believe individuals should be educated on credit more than they currently are. The odds are against us, unless we take responsibility and study and fight hard. Just like in trading.

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Guest cooter
P.S. I seriously suggest you all check out the movie "Maxed Out" it's a documentary about the credit situation in America and how it is so political and predatory. There are some major eye openers about how the government is mixed in with the lobbyists to set this whole game up.

 

From the promotional trailer:

 

"Maxed Out takes viewers on a journey deep inside the American style of debt, where things seem fine as long as the minimum monthly payment arrives on time. With coverage that spans from small American towns all the way to the White House, the film shows how the modern financial industry really works, explains the true definition of "preferred customer" and tells us why the poor are getting poorer while the rich keep getting richer. Hilarious, shocking and incisive, Maxed Out paints a picture of a national nightmare which is all too real for most of us. "

You can watch the entire film on this thread:

 

http://www.traderslaboratory.com/forums/f2/maxed-out-2196.html#post16101

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I remember Maggy Thatchers legacy in the UK when the bubble finaly burst late 80's I guess. Coupled with aggressive short selling of the £ and the chancellor raising rates to try and prop it up. Interest rates where double digit (I believe mortgage rates actually hit 17%). There where a whole bunch of people in a huge world of pain. Scotch got me through it and I don't even particularly like Scotch!

 

Really makes you wary of over leveraging in that particular arena.

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Yeah that would have won my vote.

 

Hey reaver i've been doing some investigating on the types of companies that are involved in the sub prime mess. Can you possibly give me a list or tell me where I can find in more detail, NYSE listed companies that are stuck in this mess? Besides the companies themselves are there supporting companies that get slaughtered too?

 

I find alot of the subprime companies are small and listed OTC.

 

That cramer thing is insane. I remember I had the TV on and I heard this distorted screaming coming out of the speaker. The guy looked like he was going to pop a blood vessel. Hillarious.

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\

That cramer thing is insane. I remember I had the TV on and I heard this distorted screaming coming out of the speaker. The guy looked like he was going to pop a blood vessel. Hillarious.

 

Now it's the most viewed video on YouTube this week. Go figure.

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Crap man I don't know off the top of my head, but I believe Countrywide, Washington Mutual, and I think CitiBank or one of their subsidiaries...

 

And then there was American Home Mortgage (I think that was the name) stock dropped like 50% in one day. ouch.

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well he probably had some long positions uhu ? jejeje... he needs to read some threads here at TL and start to take some shorts... thats for shure... jejejej cheers Walter

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yeah something tells me he may have had a couple long positions...;)

 

 

jejeje... he has to go seriously, but very seriously thru my "false break" trade thread... jjejeje... maybe I should add this donation button on my thread...

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jejeje... he has to go seriously, but very seriously thru my "false break" trade thread... jjejeje... maybe I should add this donation button on my thread...

 

 

go for it man. ;)

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You know, Cramer has been around for a long time and he knows a lot of big people and he knows who moves the big money.

 

Jim Cramer doesn't own any stocks for himself, only his charitable trust. The fact that he blows up like that makes me wonder how right he may be. Sure he is emotional, but he has a lot of inside connections that none of us have. He probably lost money, but the amount of money he manages in his charitable trust doesn't even compare to his hedge fund. But whatever, if you don't like him and want to look down on him that's fine. But I have to agree with him that there is a huge problem on the horizon.

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This problem has been on the horizon for a few years now....time to pay the piper...

 

I think it's gonna get ugly. If I didn't already have a house.....I'd look to buy one when the foreclosures go even further and the housing market finally crashes....Houses are popping up for sale left and right in Pensacola, it's nuts....

 

Even if rates skyrocket, just refinance after the storm and be glad you got a great deal on a house......

 

I don't think this thing has even begun to reach critical mass.

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Yea I heard about that major cash injection. Wasn't it like $130b? If they're worried about liquidity then thats not a good sign! 3 years from now is when I'm looking to dip my toes into property, cause our houses here are really over inflated. This is a lot like the Asian financial crisis. We have a lot of unregulated lending to risky debtors, over inflated asset prices, governmental intervention..... thats a bit of a warning sign. Lucky most FX markets are freely (or dirty) floated and not fixed so any meltdown wouldn't be as harsh.

 

The Bank for International Settlements must be having a lot of late nights trying to stabalise things.

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The first was 95Bil euros, 2nd days, 59bil. so it around 150bil so far. All other Central Banks are doing the same. A bit nervous aren't they? This is almost screaming panic here. Not sure if the investors and institutions will show their panic in the markets. We'll see. It's just a bit surprising that most indexes are still in their highs, it hasn't really shown deterioration just yet. It's mostly been news driven move. If this news break the support, then technicals will do their thing and confirm the news.

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Yea fully. To me if they're pumping this much cash into the markets they must be concerned with liquidity, and also trying to prop up their currency.

 

I wonder if all this is in accord with Basel II? Will be interesting to see if the BIS has anything to say about this.

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I never take this rants seriously but when his rants are confirmed by the Fed, have to look into his comments seriously. That's when I pay more attention. Even if he didn't rant about it, the Fed action would be a confirmation of a major problem.

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