Market Bottom is Realized, I Think
CAPITALISM TODAY
by author of SmartPeopleSmartMoney.com
Today's capitalism still has opportunity at all sides.
Today's capitalism you cannot see coming, but once you hear the news of its arrival, what will determine your success will be your ability to recognize the opportunity; your financial education.
You can "capitalize" on said opportunity only if preparedness ( yours ) is ready to act on the new information.
Real world example:
Yesterday I'm on a quasi date with a lovely younger woman, and I stop by the real estate kiosk at the mall ( she isn't that young, we were getting her eye glasses repaired ).
I'm perusing home prices in certain areas and sure enough, they have plummeted over 50% considering the median, and come to find out, a bulk purchase from the bank would constitute quite a discount: up to 85%!
This is unbelievable.
As for capitalism, it works with the above scenario.
There is a method allowed to buying at these low prices: in bulk. The catch is: you need to bring cash. No bank financing. But, if you want to buy a single house, your discount or "market" value will be a 20-40% discount from top of recent market, and this will be financed by the bank at today's interest rate, which has jumped almost one percent recently from 4.6 to 5.3 or something like that. The bank will be happy to lend on a singe home, no down, just sign and promise to pay in 30 days ( on excellent credit of course ).
So there you have it folks, capitalism for the consumer and investor.
This type of capitalism which pays you is not for the slow to act on new information, it is for the prepared and fearless investor.
This type of capitalism which lends to you ( if you have a job or other money making routine you need to be present to perform ) looks like economic slavery and the method or vehicle upon which the machine works ( debt service its properly called ).
So you see here the market being set by the balancing act of the FED and their interest rate financial weapon, the banks and their money lending programs targeted to certain market players and consumers, and the price, which has been deflated to get more borrowers into the web of debt or money machine... your new working class: recent immigrant / non educated folks just dropped out of high school, or folks who are not on a career or business path or other path.
Have cash will have more, and in debt will continue further in debt.
Any thoughts?
by author of SmartPeopleSmartMoney.com
Today's capitalism still has opportunity at all sides.
Today's capitalism you cannot see coming, but once you hear the news of its arrival, what will determine your success will be your ability to recognize the opportunity; your financial education.
You can "capitalize" on said opportunity only if preparedness ( yours ) is ready to act on the new information.
Real world example:
Yesterday I'm on a quasi date with a lovely younger woman, and I stop by the real estate kiosk at the mall ( she isn't that young, we were getting her eye glasses repaired ).
I'm perusing home prices in certain areas and sure enough, they have plummeted over 50% considering the median, and come to find out, a bulk purchase from the bank would constitute quite a discount: up to 85%!
This is unbelievable.
As for capitalism, it works with the above scenario.
There is a method allowed to buying at these low prices: in bulk. The catch is: you need to bring cash. No bank financing. But, if you want to buy a single house, your discount or "market" value will be a 20-40% discount from top of recent market, and this will be financed by the bank at today's interest rate, which has jumped almost one percent recently from 4.6 to 5.3 or something like that. The bank will be happy to lend on a singe home, no down, just sign and promise to pay in 30 days ( on excellent credit of course ).
So there you have it folks, capitalism for the consumer and investor.
This type of capitalism which pays you is not for the slow to act on new information, it is for the prepared and fearless investor.
This type of capitalism which lends to you ( if you have a job or other money making routine you need to be present to perform ) looks like economic slavery and the method or vehicle upon which the machine works ( debt service its properly called ).
So you see here the market being set by the balancing act of the FED and their interest rate financial weapon, the banks and their money lending programs targeted to certain market players and consumers, and the price, which has been deflated to get more borrowers into the web of debt or money machine... your new working class: recent immigrant / non educated folks just dropped out of high school, or folks who are not on a career or business path or other path.
Have cash will have more, and in debt will continue further in debt.
Any thoughts?
Comments
I would add that 'day trading' is surely NOT for novices... perhaps a simple account with a brokerage of the minimal amount could start someone 'swing trading' using several techniques while they read-up on why their money is either increasing or decreasing ;) I think Scottrade offers a virtual account to trade with to speed up the learning curve. Folks need to know how what they work for is used as the funny money it is.. and how fast it can be made and lost when not 'working for it,' per say.
Instead of a savings account holding money, I'd suggest doing secured micro loans to folks locally and use that money instead of sit on it. Others could surely use it, and if you do it right, you build community, value and wealth right at home.
Then all parties involved can learn about contracts between private parties and NOT banksters, and how to keep and protect what you worked to increase, not just save and let be sift by inflation and bad monetary policy chicanery.
Not all are savvy, but I think all need to start somewhere, not just watch or follow the herd.