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Greencake

08/11/07 2:01 AM

#8 RE: Slojab #7

Slojab,

Honesty Sir, I really don't think that the problem is that major, in the sub-prime that is...(first define it sub-prime: exactly what that is, below prime....)the regulations on the second rate loans needed to be "fixed" anyway.(so they get what they had coming to them essentially)

(second) So far defaults on loans have gone from the standard 11% on forclosures to the last two quarter at around 13%...(not a huge increase by anyones standards)

(third) OVERREACTION...need I say more....these days the U.S. stock markets almost move like the Chinese markets(as in 10% in one day at 20,000)(still the U.S. only moves at 3% at the most)

(fourth) the economy IS strong = good numbers forgive investor sentiment and eventually visa versa( buy the deals when you see them, who need a broker to tell you which stocks to buy...

(fifth)This is precisely what the central banking system (CBS) is here for: regulating liquidity.(since there was to much out there anyway) Putting money into the system when it is being pulled out...and who in there right mind isn't taking profits from the big boards since they have seen record highs 4 years consecutively(if not more like 10)("you can't hit a record high everyday" ~Cramer)So, since private investment/foreign investment dollars pull back slighty from the circulating economy and then influx of the CBS capital effectively keeps rates low so good Americans like you and I can borrow money at a lower rates...

(sixth) (relates to five), 150, 85 Billion, those numbers are jokes these days...less than four years ago the CBS pumped more than that in and that was stupid recession rumors(a recession that never happened, I might add)... 30 Trillion exchanges hands everyday in America. THIRTY TRILLION EVERYDAY


(this next number is just speculation but I bet the government makes 100 billion a day, seriously)....

(reminds me of a quote from IHUB) A billion here, a billion there, and pretty soon you are talking about real money..Senator Everett Dirksen I believe said that... and that is the truth...IMO

What it all comes down to is: Stick to the script

the normal rules you invest by

be patient

be liquid

find good deals

get rich


Good luck friend,

I hope this information finds you and others well,

JT