Ok so its pretty much a known fact that the US is heading in a recession for at least the first quarter of the year. When money is down someone always benefits. How can we get in on the winning side of the game during the recession and benefit from it economically.

Ok so its pretty much a known fact that the US is heading in a recession for at least the first quarter of the year. When money is down someone always benefits. How can we get in on the winning side of the game during the recession and benefit from it economically.

There will be no recession. W already proposed a plan to stop that.

People should be buying up cheap real estate to rent out and retire on.

There will be no recession. W already proposed a plan to stop that.

People should be buying up cheap real estate to rent out and retire on.

What proposed plan is going to stop the recession from happening? I know the government is preparing a stimulus package but the real problem is because an unequal spread of money. Too many people making too little money. Illegal Immigrants fighting for jobs have lowered the pay for the majority of middle class workers. And that is why we are having so many problems. How will more Government spending fix this sort of problem.

People should be buying up cheap real estate to rent out and retire on.


Where do they get the money to buy this cheap real estate?

Where do they get the money to buy this cheap real estate?

You don't need any money down. With good credit you can get a 100% loan. Bad credit you can get seller financing. Where there's a will there's a way.

There will be no recession. W already proposed a plan to stop that.

People should be buying up cheap real estate to rent out and retire on.

If people didn't try to get rich on stuff other people absolutely need like housing. The world would be in better place.

You don't need any money down

Unless you have outstanding credit lines you won't ever get a house with nothing down.

The "Experts" say we will live through whatever hits us the first quarter of the year. Recession? Possibly. Depression? No.

Unless you have outstanding credit lines you won't ever get a house with nothing down.

Not true. Millions of people got loans with no money down. That's part of this current foreclosure problem. The people had bad credit and should have never been given loans. Many of them got foreclosed on.

Not true. Millions of people got loans with no money down. That's part of this current foreclosure problem. The people had bad credit and should have never been given loans. Many of them got foreclosed on.

And that's why they aren't getting any more loans for those types of low income, non equity people today. They have shut down the flood gates allowing those without equity not to borrow today.

And that's why they aren't getting any more loans for those types of low income, non equity people today. They have shut down the flood gates allowing those without equity not to borrow today.

It's surprising that she doesn't already know this.

Fine. Make excuses. Don't buy any real estate while prices are in the toilet. You want to depend on the government to take care of you when you're old? Your choice. A very bad one...

Fine. Make excuses. Don't buy any real estate while prices are in the toilet. You want to depend on the government to take care of you when you're old? Your choice. A very bad one...

:mad: Who do you think you are?
The only reason you say this is because you have a shit load of comfort room from all your money. I make $10/hr I cant do the same stuff your doing. Imagined if I f*cked up Id be in a hole Id never be able to dig out of.

I'm someone who's done it for years. I bought my first place when I was 18. I wasn't making much money at the time.

You want to do it your way, go ahead.

MOD HAT: (no no one is in trouble) i would just like to remind people that anything said on here should be checked with a finantial planner. Nither the site nor indervidual members are responcable if "You" take advice and screw it up

Opportunities for benefits from a minimal slide in GDP are minimal.

The best strategy is to avoid investing in places where there is minimal growth, while investing in places where there is optimal growth...like China.

Not true. Millions of people got loans with no money down. That's part of this current foreclosure problem. The people had bad credit and should have never been given loans. Many of them got foreclosed on.
No, mortgage lenders lent money to home buyers at a low-interest 'teaser' rate that was only good for a specified length of time. Many of these were young newly-weds that had just graduated from college and entered the work force. The hope was they would be making significantly more money by the time the 'teaser' rate expired. After the specified time expired, the loan rates were re-set to a higher interest rate which increased the amount of the monthly payments. On a 30-year mortgage, a 2% or 3% increase in interest rates can mean several hundreds of dollars a month increase in monthly payments. Many people found that their income hadn't increased enough in the time interval to allow them to afford those higher monthly payments plus meet their living expenses, thus they defaulted. Others were speculators that bought houses hoping to re-sell later at a higher price to make a profit. When the value of their property decreased instead of increased, they also defaulted rather than sell the house at a loss.

First of all, remember that while a recession is possible and even probably. You're statement that "just about everyone knows we're going into a recession" foolish. The media has been beating the drum like none other, using their buzz words and making everything think its worth than it is. Its just the same old stuff amplified by a crazier than ever media. There really isnt anything out to the signal the economic downturn/recession will be deep or long.

Second of all, all the goverment stimulus packages that give rebates or foodstamps, or unemployment benefits will be a disaster. The only thing that should be done are reductions on capital gains taxes and/or corporate taxes. Those are things that will actually create some widespread economic stimulus.

Third of all, if you really do believe the markets going to get a low worse, go buy short or ultrashort ETF's. Ride the market down and get out once you think its bottomed. There are millions of places to read about short strategies, and with short ETF's its really easy to execute. I think thats what the OP is looking for.

And like the mod said. This is in no way intended to be financial advice I'm not responsible for any gains/losses from taking such an obvious position (given you are sure we're headed for recession).

Second of all, all the goverment stimulus packages that give rebates or foodstamps, or unemployment benefits will be a disaster. The only thing that should be done are reductions on capital gains taxes and/or corporate taxes. Those are things that will actually create some widespread economic stimulus.


Then where's the taxes that are needed to pay off this?

http://www.brillig.com/debt_clock/

There will be no recession. W already proposed a plan to stop that.

People should be buying up cheap real estate to rent out and retire on.

Sorry to tell you but you are already in recession. Why is Bush give money away and how about the massive write-offs of your banks ?

Theyre write-down, not write offs. As in theyre "writing down" the value of these assets and taking major losses on their balance and off balance sheet items. Theyre not making losses disappear. They're reporting them and taking the hits.

:mad: Who do you think you are?
The only reason you say this is because you have a shit load of comfort room from all your money. I make $10/hr I cant do the same stuff your doing. Imagined if I f*cked up Id be in a hole Id never be able to dig out of.

In the UK the minimum wage is equivalent to $11/ hr. If you have any skills you could earn a lot more.

In the UK the minimum wage is equivalent to $11/ hr. If you have any skills you could earn a lot more.

But they take out over 50 percent for taxes don't they? That doesn't leave much for spending does it?

Theyre write-down, not write offs. As in theyre "writing down" the value of these assets and taking major losses on their balance and off balance sheet items. Theyre not making losses disappear. They're reporting them and taking the hits.

I think it's a matter of terminology. Where I am to write down means to reduce the value of an asset,. To write off is to reduce its value to 0. Bad debts are shown in the books as write-offs because you cannot reduce the value of money you are never going to get. We are talking of trading losses,

But they take out over 50 percent for taxes don't they? That doesn't leave much for spending does it?

Who told you that ? A person on an average wage, about $45/annum is only taxed on about 1/4 of that amount after allowances. The starting rate , and the only rate, in this case is 20%. There is, of course, indirect taxation, but the total paid would be nowhere near 50% of earnings

No, mortgage lenders lent money to home buyers at a low-interest 'teaser' rate....

That was true. But there were plenty of 0% down loans at higher rates for people with bad credit who should have NEVER been given loans. They foreclosed too.

...The media has been beating the drum like none other, using their buzz words and making everything think its worth than it is. Its just the same old stuff amplified by a crazier than ever media. There really isnt anything out to the signal the economic downturn/recession will be deep or long.

The media has been shilling "Housing Bubble Bursts!!" for at least 5 years. It just happened in the past year. Then they tried telling us we failed in Iraq. The Iraqis have control over 75% now. Deaths are way down. Then they told us for the past year we were in a recession. We're not. The media is liberal, hyper, crazed morons who just want drama and sensationalism. And will say ANYTHING to hurt W. :(

Sandy, pjdude1219 please look up at the forum your in. B&E is not the place for another bush good bad thread

If thats all you want to debate i will close the thread

That was true. But there were plenty of 0% down loans at higher rates for people with bad credit who should have NEVER been given loans. They foreclosed too.



The media has been shilling "Housing Bubble Bursts!!" for at least 5 years. It just happened in the past year. Then they tried telling us we failed in Iraq. The Iraqis have control over 75% now. Deaths are way down. Then they told us for the past year we were in a recession. We're not. The media is liberal, hyper, crazed morons who just want drama and sensationalism. And will say ANYTHING to hurt W. :(

I see Bush has commited another few billion to the war in Iraq which he said he had won three years ago. And no, it's not to help the Iraquis re-build their infrastructure. It's becaus you are not winning ,which is hardly a surprise as you went in without having thought through an exit strategy. You are in recession and the worst has yet to come. Denial will not make it go away.

Bush's rescue package does not seem to be working

http://www.bloomberg.com/apps/news?pid=20601087&sid=andsgwooYQPg&refer=home

Treasuries rose for a fifth straight week, pushing two-year note yields to the lowest since 2004, as President George W. Bush's plan to spur consumer spending failed to ease concern that the economy is falling into recession.

Davis says comments by Federal Reserve Chairman Ben Bernanke suggest that the central bank is now more concerned about growing the economy than fighting the inflation. Interest-rate cuts of 50 to 75 basis points by June, Davis writes, might be enough to stave off a serious economic downturn if housing bottoms out before the end of the second quarter as well.

"If the Federal Reserve acts aggressively and housing finds a bottom, we may avoid a recession for now or at least set the stage for a short, mild recession," Davis writes.

http://www.bizjournals.com/triangle/stories/2008/01/14/daily34.html

^^Apparently its all up to the Feds now.

And the war:

Two years ago Nobel Prize-winning economist Joseph Stiglitz estimated that the war may ultimately consume $2 trillion — now much closer to standard projections than the $200 billion estimate the Bush crowd originally scoffed at. Last year the Democratic Congress took up the fight to end the war, but most Democrats, fearing the accusation that they would be "abandoning the troops," shied away from using their power to curb or cut off war spending. This is a shame, since the war continues to drain desperately needed resources. The projected cost of the war for fiscal year 2008 is $156 billion, which, according to the National Priorities Project, is enough to provide healthcare for 44 million Americans (only slightly less than the total number without healthcare); or to build 1.2 million new housing units; or to provide 161 million homes with renewable energy.

If this war drifts out of sharp focus, there will be dire consequences for the next President. The Defense Secretary and the Chairman of the Joint Chiefs of Staff are beating the drum for fat military budgets, even as Iraq's defense minister announced that he expects US troops to play guardian and instructor for Iraqi forces through 2018. Although all the Democratic candidates now reject long-term occupation and have called for withdrawal, among the leading contenders, Barack Obama and Hillary Clinton are unwilling to suggest even modest cuts to our out-of-control military budget. In fact, both call for increasing the size of the military by some 90,000 troops, which would actually increase the budget. John Edwards opposes a troop increase and has called for cutting "wasteful" spending on such programs as missile defense, but he has not called for overall reductions in the military budget.

The economic crisis has so far been approached hesitantly and without the boldness it demands. The stimulus proposals offered by leading Democrats hover around $100 billion. This is too little. Some authorities in academia and on Wall Street warn that it will take $300 billion to $400 billion in emergency spending to alleviate severe suffering and generate real recovery. Losses from Wall Street's folly are likely to total $900 billion, warns the Levy Economics Institute, a respected think tank. That's an Iraq-class disaster.
http://www.cbsnews.com/stories/2008/01/18/opinion/main3728991.shtml

Who told you that ? A person on an average wage, about $45/annum is only taxed on about 1/4 of that amount after allowances. The starting rate , and the only rate, in this case is 20%. There is, of course, indirect taxation, but the total paid would be nowhere near 50% of earnings

Thank you for that information, I stand corrected. :)

Thank you for that information, I stand corrected. :)

Are you looking for a job? I forgot to mention the fringe benefits, in particular a free health service. As a result of reciprocal arrangements with member countries, I can get treatment in any EC country if I happen to fall ill there. Prescriptions are free for anyone of 65 and over.

The feds are going to cut the interest rate again within the next 10 days--possibly by as much as a half-point.

Once the liberals decide they are happy with W's economic plan and pass it, things will brighten up even more.

I'm not worried. There will be no recession for me. :)

The feds are going to cut the interest rate again within the next 10 days--possibly by as much as a half-point.

Once the liberals decide they are happy with W's economic plan and pass it, things will brighten up even more.

I'm not worried. There will be no recession for me. :)

but people like you are not the life blood of the economy the middle class is and there probably will be a recession there

Then I will just have to spend more to make up for them. :D

Then I will just have to spend more to make up for them. :D

its not the amount that matters it is where it is coming from and how it flows through the economy is what makes middle class spending so important from what i have gathered from your posts your upper class. what the upper class spends money on is kind of isolated it doesn't provide as much of flow through out the economy.

Are you looking for a job? I forgot to mention the fringe benefits, in particular a free health service. As a result of reciprocal arrangements with member countries, I can get treatment in any EC country if I happen to fall ill there. Prescriptions are free for anyone of 65 and over.

I'm retired but thanks for the invitation.;)

Things look bleak in Latvia too. Our inflation for the second year has been very high, 14% in 2007, but in reality the every day commodity (foodstuffs, electricity, gas, heating) prices have risen by 40-50%.
So I'm spending as little as possible to create a buffer sum (in Euros) till this goes ever with the exception of some stuff I buy for filmmaking through a friend in the USA (USA prices are 1/2 to 1/3 cheaper).

Imo the USA strategy to give money to people in order for them to spend it is madness, consumer madness. Imo it would only make things worse.

People should be buying up cheap real estate to rent out and retire on.

That's his big plan !? :roflmao:

Who is going to rent if all are supposed to buy?

Who is going to rent if all are supposed to buy?

There's always a market for renters--especially when they tighten up credit.

I'm someone who's done it for years. I bought my first place when I was 18. I wasn't making much money at the time.

You want to do it your way, go ahead.

i'm from the UK and here people buy houses and rent them out, for a lot more than theyre mortgage payments, the goverment should out a cap on the lvl of prices people could charge to let properties. My friend lives in a 4 bed house, and she pays £750 a month rent, and the mortgage payments on the house is just £400 a month now that i extortion

Asian and European stock markets plunged Monday following declines on Wall Street last week amid investor pessimism over the U.S. government's stimulus plan to prevent a recession.

India's benchmark stock index tumbled 7.4 percent, while Hong Kong's blue-chip Hang Seng index plummeted 5.5 percent to 23,818.86, its biggest percentage drop since the Sept. 11, 2001, terror attacks.

Investors dumped shares because they were skeptical that an economic stimulus plan President Bush announced Friday would shore up the economy, which has been battered by housing and credit problems. The plan, which requires approval by Congress, calls for about $145 billion worth of tax relief to encourage consumer spending.

the australian stock market has had its biggest losing streak in a row, pitty i dont have any spare cash or i would be investing right now, or maybe next week. Some really good bargins there right now

Part of the problem is that we need W's plan now. Not in 10 years when the pathetic democrats finally get it their way. They want to give tax breaks to people who DON'T PAY TAXES. :mad:

the australian stock market has had its biggest losing streak in a row, pitty i dont have any spare cash or i would be investing right now, or maybe next week. Some really good bargins there right now

A bargain may turn out a dud stock. If the bargain is because of market volatility, then that is good. If it is because the company is a loser to the Chinese, then it is bad. Intel stock went down, but that is the numero uno chip company...it will come back up when people buy more computers. So that may be a safe bet.

The ultimate question is, have we crossed the tipping point? The straw that broke the camel's back? If the biggest consumer nation, America can not consume higher profit items, then there is no profit and stocks nosedive. The way to take up the slack is for the Chinese, Indians and Australians to start consuming for the next 6 months - then everything will balance out.

i was thinking about companies like BHP, or woolworths

The stock will be down for 2-3 weeks. The institutional investors will jump at the chance to readjust their portfolios. So, this is a good time to buy. Just look at the fundamentals of the company you plan to buy, you will be OK.

The stocks will be doing yo-yo for the whole year. People will look at quarterly earnings, readjust their buy/sell and again wait for the next quarter. This will be an interesting year.

I've read this thread and find it interesting. I'd say the most reasonable conclusion is that currently the USA is following a financial model that is failing. There can't continue to be cuts in taxes when these have little effect on the over-all situation. Everytime something happens they cut taxes thinking it will help but in reality it does nothing, that's because corporate america is not regulated, they're greedy and don't work for the good of the state. As long as that's the case there will be failures in the economy here and eventually through outsourcing there will be no jobs left, not ones you can support yourselves on anyway. That's the future America is heading towards (if it hasn't already achieved this) and the quality of life here is falling too. Eventually society in America will be like a third world country and the other nations will laugh at us for being so ignorant of why.

Oh well

Unlike Japan, the corporations in USA do not work for the good of the state is because of our me-me culture. You would think that the big "Think Tanks" that advise both the political parties, influence proper decision making. But that does not happen, because it is the poor that pay the price. In the long run ( about 4 years), the country becomes a third world country like Argentina where 60% are poor and severe unemployment.

Until there is large scale demonstrations on the street or collge campuses, it is all downhill.

Part of the problem is that we need W's plan now. Not in 10 years when the pathetic democrats finally get it their way. They want to give tax breaks to people who DON'T PAY TAXES. :mad:

I'm sorry but didn't [and I'm not attemping to debate you on Bush] the Republican plan get us in this mess in the first place? Didn't the Republican Plan get us into a war? So we should wait for more Bush/Republican plans?

Let me pose this as a Jepardy Question:
Doing the same thing over and over again and expecting different results.

The Answer is: What is Insanity.

In reply to the OP- Islamsmylife: "How can we get in on the winning side of the game during the recession and benefit from it economically."

I'm focusing my next round of education and training on the maturing technologies that enable personally-managed sustainable power production and conversion. Creative and distributed manipulaton of energy will be central to the restructuring ahead. Like those who had the foresight to apply themselves to becoming experts in the early Digital Age, those who lead the way in enabling new energy alternatives will soon be in unusually high demand.

Some of the technology is here, connecting the technology, investors and managers have been very difficult. For example:

1. Solar Cells in a continuous process - One guy developed it in mid eighties but could not find an investor....so that is dead

2. More research on Polymer batteries - very slow going

3. Wind Power - It is just a generator and a lot of metal, does not have super high technology, yet the demand is very slow

4. Bio-diesel - we are doing better, but not fast enough

5. Hot Fusion Power - There is no mandate by the president like putting man on the Moon.

6. Work from home in this digital age and save millions of gallons of gas - No Leadership

7. Read Alvin Toffler's books and use them - no body does.

8. Grow your own food - we buy food from China

9. Africa, grow food to export to USA. - Some idiot told them to sew clothes to export competing with China.

Oh well....

Part of the problem is that we need W's plan now. Not in 10 years when the pathetic democrats finally get it their way. They want to give tax breaks to people who DON'T PAY TAXES. :mad:

Ummm....first of all, you are wrong. Secondly, the democrats want to provide tax breaks to the middle and lower class and for people who CANT PAY TAXES.

I dont think the Bush administration makes any sense in providing tax breaks for the rich, unless they want the rich to stay rich, the middle to stay middle, and the poor to stay poor.

Ummm....first of all, you are wrong. Secondly, the democrats want to provide tax breaks to the middle and lower class and for people who CANT PAY TAXES.

I dont think the Bush administration makes any sense in providing tax breaks for the rich, unless they want the rich to stay rich, the middle to stay middle, and the poor to stay poor.

Thats exactly what they want