FinancialAdvisor's College Class (FACC)

[FinancialAdvisor]

Patience may be in store, we have not seen home prices drop this rapidly ever, and the fact that last year was the first year where median home & condo prices across the country dropped year over year since the Great Depression should ring a few alarms.

The recent boom was built on banks giving out excessive amounts of loans to first-time home-buyers, speculative home-buyers, etc. People tapped into this equity, bank employees profiting off of these loans saw $$$. Now some loans are going bad, people got taken advantage of with ARM loans they had no idea of the consequences. These are all go sour in due time. If rates rise up now, they crush the housing market, if rates don't rise up now, they crush the dollar. If they attempt to bail out homeowners, the dollar is crushed, China refuses to finance our greed.

It's too early to talk about buying distressed companies. We are looking at the greatest financial crisis of our times. I think 200K would best be spent elsewhere at this time.