Replies to post #43745 on Mohacsy's Safe Portfolio Member Forum

[n4807g]

Good point. I can't remember where I read it,but as I recall the figure quoted was something like $10 trillion $'s was sitting in MM or equivalent accounts at the end of October. I guess we will have to wait and see where this goes. I also wonder what will happen to the "flight to safety" crowd that bought treasuries when treasuries begin to fade?

[Elroy Jetson]

This is why the largest pawn shop in Beverly Hills is receiving so many gold coins and jewelry as collateral for instant cash. If you listen, note the people keeping real estate deals afloat with pawn broker financing as they don't qualify for bank loans.

When their home is foreclosed, survivalists can only stuff so many months of freeze-dried food into the trunk of their car. And the first thing the wife will insist upon is that the gold coins go to the pawn shop, long before the wedding ring.

I believe thus need for cash is what will drive the market to test the bottom of it's uptrend.

[elena_murooni]

And, if prime mortgages are now in default, then the 401K money for those folks is exhausted? One of the 5 national reasons for a hardship withdrawal is foreclosure on a primary residence. Granted, liquidation of the assets held in the 401K can flood the market with sell transactions, but the liquidation in many mutual funds are not necessarily "putting money on the sidelines". Some of those redemptions were to fund a hardship withdrawal... just to pay the mortgage company.

I have to wonder, beyond job loss, exactly WHY the prime mortgages are in default when the mechanism to prevent it (hardship withdrawals/loans) are available.