How to win in the recession?

Discussion in 'Business & Economics' started by Islamsmylife, Jan 20, 2008.

  1. Islamsmylife Registered Senior Member

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    168
    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.
     
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  3. sandy Banned Banned

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    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.
     
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  5. Klippymitch Thinker Registered Senior Member

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    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.
     
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  7. cosmictraveler Be kind to yourself always. Valued Senior Member

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    Where do they get the money to buy this cheap real estate?
     
  8. sandy Banned Banned

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    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.
     
  9. Klippymitch Thinker Registered Senior Member

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    699
    If people didn't try to get rich on stuff other people absolutely need like housing. The world would be in better place.
     
  10. cosmictraveler Be kind to yourself always. Valued Senior Member

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

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    87
    The "Experts" say we will live through whatever hits us the first quarter of the year. Recession? Possibly. Depression? No.
     
  12. sandy Banned Banned

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    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.
     
  13. cosmictraveler Be kind to yourself always. Valued Senior Member

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    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.
     
  14. Klippymitch Thinker Registered Senior Member

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    699
    It's surprising that she doesn't already know this.
     
  15. sandy Banned Banned

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    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...
     
  16. Klippymitch Thinker Registered Senior Member

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    699

    Please Register or Log in to view the hidden image!

    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.
     
  17. sandy Banned Banned

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    7,926
    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.
     
  18. Asguard Kiss my dark side Valued Senior Member

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    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
     
  19. Carcano Valued Senior Member

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    6,865
    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.
     
  20. 2inquisitive The Devil is in the details Registered Senior Member

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    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.
     
  21. DubStyle I may be wrong, but I doubt it Registered Senior Member

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    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).
     
  22. cosmictraveler Be kind to yourself always. Valued Senior Member

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

    http://www.brillig.com/debt_clock/
     
  23. Myles Registered Senior Member

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    5,553
    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 ?
     

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