It’s never paid to bet against America
Warren Buffett was interviewed on Dateline NBC last night and described the current state of the economy as an "economic Pearl Harbor" that is not as bad as the Great Depression or World War II, but still is very significant. The Oracle of Omaha said that fear is permeating the American psyche, "which leads to people not wanting to spend and not wanting to make investments, and that leads to more fear. We'll break out of it. It takes time." Buffett didn't wish to guess when the crisis would end, but he did leave with one piece of powerful advice: "It's never paid to bet against America…We come through things, but it's not always a smooth ride." San Diego real estateBush Speak … A Disturbing Trend
Bush: “I’ve abandoned free market principles to save the free market system”
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This use of language where a leader states that he/she must “destroy or limit” something in order to perserve it is yet another disturbing global trend. San Diego real estate
100,000 File For Bankruptcy
In October more than 100,000 consumers filed for bankruptcy protection, a 40% increase from the year before. Total filings for the year are on track to exceed 1.1 million, according to Sam Gerdano, the president of the American Bankruptcy Institute.
Exceeding the 1 million benchmark is significant because it was that level of filings that prompted lenders to start lobbying for the bankruptcy changes that went into effect in October 2005.
Prior related posts:
New Relief Program For Homeowners at Risk of Foreclosure
U.S. National Debt Clock
Real Estate – An Innovative Way of Not Filing Bankruptcy
Second Home Foreclosure Tax Penalty
Home Mortgage Foreclosure Scams
Business bankruptcies spike
CONSUMER CONFIDENCE HITS ALL-TIME LOW
™ hit an all-time low in October. Lynn Franco, director of The Conference Board's Consumer Research Center said: "Looking ahead, consumers are extremely pessimistic, and a significantly larger proportion than last month foresees business and labor market conditions worsening. Their earnings outlook, as well as inflation outlook, is also more pessimistic, and this news does not bode well for retailers who are already bracing for what is shaping up to be a very challenging holiday season."Greenspan … Wrong On Regulation
"I made a mistake," Greenspan said, "in presuming that the self-interests of organizations, specifically banks and others, were such as that they were best capable of protecting their own shareholders and their equity in the firms."
"The Federal Reserve had as good an economic organization as exists," Greenspan said. "If all those extraordinarily capable people were unable to foresee the development of this critical problem . . . we have to ask ourselves: Why is that? And the answer is that we're not smart enough as people. We just cannot see events that far in advance."
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"We have to recognize that this is almost surely a once-in-a-century phenomenon," Greenspan said, "and in that regard, to realize the types of regulation that would prevent this from happening in the future are so onerous as to basically suppress the growth rate in the economy and . . . the standards of living of the American people."
Prior related posts:
Cramer Calls the Bottom in Real Estate Market
Greenspan … Housing Bottom In Sight
Greenspan … We Are In A Recession
30% chance the U.S. economy falls into recession in 2008
Fed Cuts .25% From Interest Rates To Help Housing Market
Former Fed Chief … Would Not Be Surprised If The Housind Drop Was “in double digits.”
Greenspan on The Housing Bust
Employment Report Negative Surprise . . . for Some
4 Sure Signs of A Real Estate Market Top
Greenspan – Possible Recession This Year!
Cramer Says SELL Stocks This Week!
This morning on The Today Show, Jim Cramer said if you own stocks and will need cash from those investments within the next five years, you should sell those investments this week! Why say this on national TV? Obviously, he expects stocks to fall an additional 20% from today's level.
Keep in mind that as of Friday's close, 80% of stocks in the Russell 3,000 are down year-to-date, and a whopping 17% are down more than 50%. Jim Cramer is the host of CNBC's "Mad Money" and co-founder of TheStreet.com.
A few prior posts on stocks & the economy:
Govt. Take Over Of Fannie Mae and Freddie Mac Could Cost Billions
Stocks of Housing Giants Suffer Huge Losses
Former Fed Chief … Would Not Be Surprised If The Housind Drop Was “in double digits.”
Stock Market tumbles 146 points . . . The Perfect Bull Trap on Sub-Prime Woes
Bicoastal Housing Recession Forecast By UCSD Economist
Real Estate vs. Stocks – Which is the Better Investment?