patrick.net

At this very moment, Cramer is spewing sewage about a bottom in the housing market. It's painful to watch. "I'm buying the homebuilders, I'm buying the banks" and "Guess what, I'm buying a house!".

Very Entertaining. Herding 'em into the slaughterhouse.

Thanks to all for their sentiments. I will most likely stay with Chase then. They have not been bad, but always on the look out for something better. This is something I don't want to have to think about once the "fun" starts.

The piece of dirt you land on after your mother craps you out doesnt say much about a person.

But the precise time of your birth does.

HelloKitty - It matters more what tribe you're in. You're European, African, Asian, etc. My roots in California go back a hundred years, but you can't tell that, I could have come from somewhere in Europe at age 5, for instance, just in time to not have an English, German, etc accent. We don't get to choose our jerseys in the coming games.....

richcte -- I'm assuming you don't have a lot of money, which is why you're in the military. I'd be back in myself if I were a few years younger, I tried. You might want to consider having your paychecks sent back to your parents, family, something like that, and saved so if your bank collapses your money might be OK. I seem to remember the Army being big on US Savings Bonds, and in my family they were considered the Gold Standard of investment. I've since heard they were never that great, but they were SAFE. Well, in these times SAFE is the name of the game.

Before you leave, come to think of it, if you have the money and time, try to get yourself through Combat Pistol and Combat Rifle courses. Might just save your bacon, ya know?

@ex-sunnyvale, society will eventually collapse into long term anarchy, but it could be 1000 years from now. I for one am not preparing until the mob is outside the door, but thats me. Even during great depression we had a running country and people starved and ate roadkill commonly, so dont get your hopes up waiting for armageddon/race war/left behind/meteor strike/dirty bomb.

however, since i believe in evolution, it only makes sense a certain percentage of every popultion is paranoid and prepared for the end times, because they do happen and these people will survive to father the next generation... but then after 200 years of easy living again the paranoid will become a minority since its not an optimal lifestyle....its like being a 'fraidy cat - or a friendly cat. when famine strikes the villiage all the friendly cats get eaten. but the fraidy cats u cant catch. but when famine is over, the friendly cats multiply since they are better pets... its Darwinian beauty.... so good luck waiting for end of world. Remember according to evolution diversity (that u hate) is the strength of any species to survive long term.

"At this very moment, Cramer is spewing sewage about a bottom in the housing market. It’s painful to watch. “I’m buying the homebuilders, I’m buying the banks” and “Guess what, I’m buying a house!”.

Very Entertaining. Herding ‘em into the slaughterhouse."

I saw the opening of Cramer's Mad Money show as well, and towards the end of his show he read an email asking Cramer whether he should buy a foreclosure in Northen California. Cramer's reply was - No, stay out of the housing market in California and Florida, everything else is up for grabs.

Even Cramer knows to stay out of California's overpriced market.

DinOR Says:
You have a 750+ but you can’t come up w/ closing costs?

I.e. his credit-score is 750. His cash-score is $7.50. :-)

You have a 750+ but you can’t come up w/ closing costs?

I.e. his credit-score is 750. His cash-score is $7.50. :-)

Apply for a mortgage only if you have more cash than your credit score !

BTW, does anyone still have any respect for Bernanke ? ;-) Just asking.

3% to go from ZIRP.

I am wondering if we will already get to 1.5% in the first half 2008.

BTW, does anyone still have any respect for Bernanke ?

I oddly respect the fact that he is willing to give up his historical legacy, to be remembered as one of the lamer Fed chiefs, all in the name of saving Wall Street, the banks, and the Bush administration's popularity rating.

Taking one for the team...

3% to go from ZIRP.

The Fed rate at 3% is in many economists' opinions now already below the current real inflation rate. We've already crossed a major threshold.

HelloKitty - on an energy basis, it won't take 1000 years. I cite the works of Catton, Heinberg, etc and forward you to the sites www.theoildrum.com and www.lifeaftertheoilcrash.net on this topic.

Diversity's all well and fine, but I'll wipe 'em out before they'll wipe me and my people out, and I've lived most of my life with that being the reality.

You don't get to change your jersey, bud.

Now! On a more cheerful note, more BA layoffs may be coming, Ebay's really shot themselves in the foot, at about gut-level, and there's actually a petition going around on-line for Google to start up auctions, so we may see the death of Ebay soon. That means more wonderful $10 an hour techies gotta try to find work at Wal-Mart for $8 an hour. But the waiting line for any $8 an hour job in the BA is going around the block so...... invest in homeless shelters?

What oil crash?

Oil is abundant at $90 a barrel. We just need to silence the environmentalists and ramp up production in Canada.

BTW, does anyone still have any respect for Bernanke ?

Bernanke must save the banking system; it is the foundation of our worldwide economic system. If he does not, we are talking major disruptions to global trade supply chain and economies. I'm not even sure what would happen beyond an inability to get product to market, to move money around. It would be a cataclysm, no? So, he is doing what he can even if it is against my interests relative to real estate, and even if it is tilting at windmills or fools errand at this point. I actually think he was a sound choice for fed chairman given his management and leadership skills, and expertise on economic downcycles. The man was simply handed a lit stick of dynamite.

His priority must be to save the system.....inflation, dollar, and everything else takes a back seat.

His priority must be to save the system…..inflation, dollar, and everything else takes a back seat.

Let's profit from his heroic act!

I will hire techies at $11/hr to clean my house!

PeeterPee -- put up notices in the laundromats or on Craig's List, you'll get 'em.

ptiemann - I'm being hyperbolic, in truth, the most I made as a techie was $11 an hour. I just rounded it down to $10. And a lot work for $10 or less. I was a skilled repair tech, component-level repairs, PCB repairs and rework, and I hated seeing a unit come back, so my re-repair rate was very low. Basically, I had this thing about fixing anything put in front of me, so I fixed all kinds of wierd shit too, like people's printers and stuff. And this earned $11 an hour. The guys out in Shipping And Recieving made more. I really made a mistake not going into Shipping And Recieving. No oscilloscope to play with, but more per hour and get to play with a forklift? Should'a done it.

This is why if I move back to the BA I plan to have both street-artist and street-musician skills firmly in place, since those street performer types make more than techies OR forklift jockies and get to sleep in if they like.

I was going to post earlier agreeing with northernvirginiarenter - that BB has to do what his job calls for, keep the markets stable, save the banks, etc. yadda yadda. I guess it's like being head steward on the Titanic. It's sinking, but the linen WILL be clean!

@stuck

Thanks for the "props" earlier, just noted your note

I am thinking of refinancing my mortgage (to a shorter loan term), the rates for 10 and 15 year loans are the lowest I've seen in awhile. There goes the new BMW :(

How come it is so darn difficult to trade platinum. Is NYMEX futures the only viable choice?

I am thinking of refinancing my mortgage (to a shorter loan term)

Why do you hate freedom? Shorter term? :)

cb,

try to do a 15 year.

I did the WRONG thing looking back, I refinanced to a 10-yr one trying to be fiscally conservative and now I am kicking myself for not extending the period longer, you are essentially paying back worthless papers so why not drag it out longer?

I refinanced in April and my rate is still competitive, so doing a refi again is not worth the points or effort. If for some reason 15-yr FRM goes to 4% or lower, I will definitely refinance to 15 year - and pull equity out as well.

Peter P,

Is that your best eBrubed imitation :) Maybe I'll get a new bimmer afterall.

Realistically, how low will the mortgage rate go, I know they are tied to 10 year treasury, when the Fed left the rate at 1% a few years ago, lowest rate for a 15 year mortgage I found was a little below 5% (of course it depends on points, etc.).

OO

I have a 15 year right now and I am looking at 10 year fixed, like Malcolm said, it is hard to arbitrage and win, at least for me.

But, so far your investment advice's been pretty good, so it probably make sense for you to pull equity and invest to get higher yields.

ex_sunnyvale_renter

In previous post:

their=your

Holding a conversation and typing does not work for me. Obviously.

Second, I will have plenty of weapons quals on everything from the pistol to .50 Ma Deuce. Big thing is fire and movement now. I am in the Navy but we are taking up Army slack in the sandbox. Don't know if I will be doing any door kicking yet.

My thing was to be safe with my money, hence the CD. I will take a look a Chase's offerings and other banks. Is their a site that has the CD rates for the various banks ranked by return?

I have turned more than a few people on the this site and tell them the real action is in the comments since you can learn much from people smarter than yourself in various areas of real estate, finance, etc. I really appreciate the folks on here. Teaches me something.

their=there. Yowza, me no able to type tonight!

cb,

there's really no reason to hasten payment if you are already on a 15-yr loan, unless you want to lower rates.

Let's face it, even before we pay off our debt in 10 years, we will start to lose the tax shield advantage very soon in the 6th or 7th year because the interest amount starts to wind down rapidly in the amortization table. Essentially what you are opting to do, is to put more of your financial cash flow into your house - a depreciating asset, while losing tax shield at the same time.

If you pay it off over a longer period of time, you have to flexibility of putting your money elsewhere, which doesn't necessarily mean higher return, but it helps diversification away from a USD-denominated, depreciating asset.

If one is choosing between 30 years and 15 years, then there is substantial interest savings for the 15-yr loan. If it is only 5 years, you'd probably be better off sticking with a longer time schedule.

I am sure you can run a spreadsheet in determining what % of USD depreciation will justify paying extra USD interest expense (adjusted for tax) for the additional 5 years, or perhaps estimate what the breakeven % of depreciation is.

FAB,

>I’ll consider someone a “Californian” as soon as they stop saying “out here” and are not talking >about somewhere besides California when they say “back home”…

How about the ones that say "back east", but did not even come from there. That always baffled me.

There is no housing bubble in SF. Look, even this 4/4 is asking for close to $100M!

http://www.movoto.com/real-estate/homes-for-sale/CA/San-Francisco/955-Excelsior-Ave-110_336367.htm

Only multi-billionaires can afford to live here. :(

Well, as a Calfornian, let me put it this way: I was out in St. Louis and those people didn't seem to know they're Back East, even after I told them so!

Back East, to a Californian, is anything east of the Mississippi. Which St. Louis, is, just.

His priority must be to save the system…..inflation, dollar, and everything else takes a back seat.

That's what his priority SHOULD be. But he is idiotically trying to judge the health of the system from stock market fluctuations. Last week he became a joke for reducing the interest rates due to market actions that could have been triggered by a rogue trader.

So how many stock market crashes he is going to react to by cutting interest rates by 75bp ? At that rate he can "save" say 4 crashes. And after that ?

The guy is a PR disaster. He may have a Ph.D. in economics, but he hasn't even attended pre-K for communications. As I have said before, Greenspan was at least evil, this guy is plain stupid.

DinOR,

I looked up ETY EXG QQQX AGC on yahoo finance and there is no mention of yield, plus the value is dropping. What;s the deal? DO I need to go look at investopedia again?
:-)

I bought my safe yesterday!

Two observatioons:

1) A safe is very heavy and requires two people and/or a dolly to lift it.

2) Home Depot is very empty - I believe there were more employees than customers at the store where I bought the safe.

Cheers!

observatioons = observations

I watched one of those reality shows where ex-con professional home burgles hit a house that the home owners believed was very well protected a while back. The owners had 3 safes. 2 installed, one of those custom built into a cinder-block wall. And one portable safe that weighed something like 600lbs.

Needless to say, the pros emptied the 2 permanent safes in about 15 minutes and the loaded the other one up on a cart and rolled it out the door.

They said the best bet would have been to stuff all those safes full of "not that valuable" valuable stuff, because if they find a safe they always open/take it. They said you're best to put stuff you care about in a hole under the doghouse, or better yet, in a bank's safety deposit box.

Bap33,

not sure about your local market, but $130K for a house with 1.2 acres sure sounds good to me.

Except one thing, how will a semi-rural area fare in a $100+ oil environment? As long as you are comfortable commuting with $5 or more gas, then go for it.