Brainfade Posted January 19, 2009 Posted January 19, 2009 Wouldnt be surprised at that 18,000 number. No-one is moving into Detroit today, everyone is moving out. Heck they have been doing so for almost decade and a half now. The only shining light(for me) is Detroit Airport. It was one of the busiest airports in the world during the glory days of Big 3 Auto Makers. It obviously has infrastructure in place to support it. These days not too many people fly through Detroit Airport and so for the people who do fly through Detroit International it is a breeze. You fly through a fantastic airport without much crowd and hassles. xx In spite of all that, 18K is just way, way too low. You cannot even buy a Toyota Camry for that amount.
Ram Posted January 19, 2009 Posted January 19, 2009 so where should i invest now ?if not in real state ? gold? or gold stocks? If you planning to buy a home, you should it definitely postpone it. The whole real-estate market is going through a major correction. The predictions are, the prices will soon go to levels that they were at 2000. If you have dollar savings ( like say checking account/savings account), you'd do wise to convert some of it into foreign currency. And I am assuming since you're Indian or have relatives in India, its easier for you to do so. You could invest money in Govt. post office Bonds. They offer a decent rate of interest. You could also consider investing into into pure gold ( if you're not into stock trading in precious metals, you could just go to the shop and buy it. Remember, Gold is money and money never loses value. Only currency loses value). I wish I could say buy up some real-estate in India, but I think the real-estate market in India too is set for some correction, atleast in certain parts. this guy is scaring the crap outta me man ! Relax, this guy's on one extreme end of the spectrum. Its highly unlikely that what he says may come true. Some of his predictions have gone wrong.
Ram Posted January 19, 2009 Posted January 19, 2009 18,000? Thats impossible.. Even trailer homes probably cost more than that.
Lurker Posted January 19, 2009 Posted January 19, 2009 In spite of all that' date=' 18K is just way, way too low. You cannot even buy a Toyota Camry for that amount.[/quote'] Forget Toyota Camry you wont even get the high end Toyota Corrola for that price. These days Corrolas, Civics are going for more than 20 K. Hate the way their prices have gone up, but thats another argument for another thread.
goose Posted January 19, 2009 Posted January 19, 2009 interesting. check these links quoting 18,000. http://www.tribbleagency.com/?p=3598 http://mjperry.blogspot.com/2008/06/average-sale-price-of-house-in-detroit.html [ame=http://uk.youtube.com/watch?v=1r_NMqm1ZPA]YouTube - TSHTF Scenario Now Hitting DETRIOT! Average home price $18,513 - Unemployment rate 21%[/ame]
Brainfade Posted January 19, 2009 Posted January 19, 2009 interesting. check these links quoting 18,000. http://www.tribbleagency.com/?p=3598 http://mjperry.blogspot.com/2008/06/average-sale-price-of-house-in-detroit.html YouTube - TSHTF Scenario Now Hitting DETRIOT! Average home price $18,513 - Unemployment rate 21% I think we may be comparing apples and oranges here - Dr. Mark Perry's site says that the average price of houses SOLD is ~ $18K whereas the average home value (including not-for-sale houses) is ~ $185K. If I am looking at it right, that $ 18K number is staggeringly scary. Edit: Actually, maybe not. Looks like both our sources are looking at apples, but giving us a 10-fold differential. Now, that's crazy.
suraj Posted January 19, 2009 Posted January 19, 2009 Whats the advice for 401 K at this time; what should one do in these times???
Ram Posted January 19, 2009 Posted January 19, 2009 I think we may be comparing apples and oranges here - Dr. Mark Perry's site says that the average price of houses SOLD is ~ $18K whereas the average home value (including not-for-sale houses) is ~ $185K. If I am looking at it right, that $ 18K number is staggeringly scary. Edit: Actually, maybe not. Looks like both our sources are looking at apples, but giving us a 10-fold differential. Now, that's crazy. The only possibility of housing prices being so low is if they've started quoting those old abandoned homes that have been uninhabited for many years. But beyond that, I dont see how average prices of habitable houses can be $18,000 in Detroit. Thats just impossible, its even less than those in India.
Brainfade Posted January 19, 2009 Posted January 19, 2009 The only possibility of housing prices being so low is if they've started quoting those old abandoned homes that have been uninhabited for many years. But beyond that, I dont see how average prices of habitable houses can be $18,000 in Detroit. Thats just impossible, its even less than those in India. You're probably right. There are many confounding issues, though - if you looked closely at the Detroit data that goose linked, the peak average sale price for the 1998 - 2008 decade was $90K. From that starting point, I can see where $18K is possible. Moreover, I am not sure how foreclosure sales are listed. I've heard that they may be listed as a $0 sale (not sure if this is true, but if so, that might explain it). Considering all this, I wonder if the median price is a better indicator than the average price. Regardless, I am not moving to Detroit anytime soon - the weather stinks, and their football team stinks even more!
Ram Posted January 19, 2009 Posted January 19, 2009 You're probably right. There are many confounding issues' date=' though - if you looked closely at the Detroit data that goose linked, the peak average sale price for the 1998 - 2008 decade was $90K. From that starting point, I can see where $18K is possible. Moreover, I am not sure how foreclosure sales are listed. I've heard that they may be listed as a $0 sale (not sure if this is true, but if so, that might explain it). Considering all this, I wonder if the median price is a better indicator than the average price. Regardless, I am not moving to Detroit anytime soon - the weather stinks, and their football team stinks even more![/quote'] The figure of $18 K can come about ONLY if it includes foreclosure prices and as you had pointed out, those $0 houses ( I guess those houses are in such a bad condition that if anyone buys them, they'd have to spend 10s of 1000s of dollars renovating it and making it habitable again). But what we should be really concerned about is the ave. price of habitable homes in decent localities.
cybervickey Posted January 19, 2009 Posted January 19, 2009 If you planning to buy a home, you should it definitely postpone it. The whole real-estate market is going through a major correction. The predictions are, the prices will soon go to levels that they were at 2000. If you have dollar savings ( like say checking account/savings account), you'd do wise to convert some of it into foreign currency. And I am assuming since you're Indian or have relatives in India, its easier for you to do so. You could invest money in Govt. post office Bonds. They offer a decent rate of interest. You could also consider investing into into pure gold ( if you're not into stock trading in precious metals, you could just go to the shop and buy it. Remember, Gold is money and money never loses value. Only currency loses value). I wish I could say buy up some real-estate in India, but I think the real-estate market in India too is set for some correction, atleast in certain parts. Relax, this guy's on one extreme end of the spectrum. Its highly unlikely that what he says may come true. Some of his predictions have gone wrong. i dont wanna invest in indian currency either coz lately a lot of our economy is dependent on the dollar , so if dollar goes down i am assuming that it'll effect the Rs too....is there an alternative to just buying pure gold coz' i dont think i wanna store all that gold in my house ....how do gold stocks work ? can a gold stock company go bankrupt ?.isnt gold price going down lately ?
Ram Posted January 19, 2009 Posted January 19, 2009 i dont wanna invest in indian currency either coz lately a lot of our economy is dependent on the dollar ' date=' so if dollar goes down i am assuming that it'll effect the Rs too....is there an alternative to just buying pure gold coz' i dont think i wanna store all that gold in my house ....how do gold stocks work ? can a gold stock company go bankrupt ?.isnt gold price going down lately ?[/quote'] What you must be worried about is not whether the Indian or the US economy will go down or up, but whats your best chance of sustaining your living standards over the next 8-10 years. Consider this; If you do nothing now and keep holding all your dollar denominated assets and in 2-3 years, the US economy does collapse and you're forced to go back to India, what do you have to show for your stay in the US? However, if you do convert some of your dollar assets into say real-estate in India or gold or govt. bonds that give you interest, even if the Indian economy collapses, you still have a good house to stay in, some money to spend for your sustenance. However, if you dont do any of these and continue to hold all your assets in $, what could happen is that inflation could potentially totally debase the dollar value and rising interest rates means your adjustable interest rate mortgage payment skyrocket, so every time you make a mortgage payment, you end up with a net loss of wealth. You will still have 1000s of dollars in your checkings and savings account but they will worth half of what they were before. And reg. buying of gold stocks, I dont know how it works because I myself have never tried it out. And can gold/precious metals/commodities go down? Of course they can. Oil has plummeted and gold/silver/platinum prices have softened, but as the Dollar loses its value due to inflation, more and more people would want to get out of it and will invest in precious metals/other currencies. That is when its prices will rise. This may not happen in the next 2-3 years, but it definitely has to happen at some point.
cybervickey Posted January 19, 2009 Posted January 19, 2009 What you must be worried about is not whether the Indian or the US economy will go down or up, but whats your best chance of sustaining your living standards over the next 8-10 years. Consider this; If you do nothing now and keep holding all your dollar denominated assets and in 2-3 years, the US economy does collapse and you're forced to go back to India, what do you have to show for your stay in the US? However, if you do convert some of your dollar assets into say real-estate in India or gold or govt. bonds that give you interest, even if the Indian economy collapses, you still have a good house to stay in, some money to spend for your sustenance. However, if you dont do any of these and continue to hold all your assets in $, what could happen is that inflation could potentially totally debase the dollar value and rising interest rates means your adjustable interest rate mortgage payment skyrocket, so every time you make a mortgage payment, you end up with a net loss of wealth. You will still have 1000s of dollars in your checkings and savings account but they will worth half of what they were before. And reg. buying of gold stocks, I dont know how it works because I myself have never tried it out. And can gold/precious metals/commodities go down? Of course they can. Oil has plummeted and gold/silver/platinum prices have softened, but as the Dollar loses its value due to inflation, more and more people would want to get out of it and will invest in precious metals/other currencies. That is when its prices will rise. This may not happen in the next 2-3 years, but it definitely has to happen at some point. thanks for the detailed ans, i am assuming that you are a business major with all that insight?.any ways,property values in india are really really high right now , i dont think that i would be able but property there , my family in india .... well lets just say that not an option , so the only options left are either invest in gold or buy foreign currency ...wht do u think about the euro or the Canadian dollar ?
Ram Posted January 19, 2009 Posted January 19, 2009 thanks for the detailed ans' date=' i am assuming that you are a business major with all that insight?.any ways,property values in india are really really high right now , i dont think that i would be able but property there , my family in india .... well lets just say that not an option , so the only options left are either invest in gold or buy foreign currency ...wht do u think about the euro or the Canadian dollar ?[/quote'] Business major? I wish i was one. :D... Just for the record, I am an EE major, with little knowledge of EE. :haha: And which currency? Anything other than the Dollar basically. Asia ( Yen, NZ dollar), Europe ( Euro, Swiss Franc) are good bets. And here's the catch. Truth be told, I am myself learning the ABC of the financial world right now. Hardly anything I write here is my own original contribution. My posts are just a collection of thought/information that I gather from the various sources that I read/see ( Electronic and print media). So, you shouldnt be reading these posts and set off on a frenzy. But what I am trying to do is to instill a thought process into you guys' minds that things could get bad pretty soon and you must atleast consider doing something about it, before its too late. I know this is pretty serious stuff and not a matter that one can afford to be flippant about.
cybervickey Posted January 23, 2009 Posted January 23, 2009 http://goldmoney.com/en/index.php does this website looks legit to you ?. should i buy from here ?
TheBoyPlunger Posted January 24, 2009 Author Posted January 24, 2009 Remember' date=' Gold is money and money never loses value. Only currency loses value). [/quote'] All asset classes go thru trends. Gold topped at 800 in 1980 and was at 250 in 2000. Meanwhile, the Dow at 800 in 1980 reached 12000 in 2000. So what works in one scenario might not work always.
TheBoyPlunger Posted January 24, 2009 Author Posted January 24, 2009 so where should i invest now ?if not in real state ? gold? or gold stocks? Go for pure stocks over the next 6 months- tech and maybe pharma. Climb onto the 'Obama rally'.Then get into cash. Let's see what happens then. Lots of 'experts' expect a major defaltionary trend. In which case CASH is SRT :winky:. Of couse, all this is opinion :--D
TheBoyPlunger Posted January 24, 2009 Author Posted January 24, 2009 i dont wanna invest in indian currency either coz lately a lot of our economy is dependent on the dollar ' date=' so if dollar goes down i am assuming that it'll effect the Rs too....is there an alternative to just buying pure gold coz' i dont think i wanna store all that gold in my house ....how do gold stocks work ? can a gold stock company go bankrupt ?.isnt gold price going down lately ?[/quote'] Go for pure GOLD. Some of it can be in ETF or physical like gold biscuits. Research more as to how you can dispose of them quickly, if required. In case of gold stocks there is a huge element of speculation, hype and fraud. So unless your an expert in Gold, it's very difficult to differentiate what's really happening in these companie.
Ram Posted January 25, 2009 Posted January 25, 2009 All asset classes go thru trends. Gold topped at 800 in 1980 and was at 250 in 2000. Meanwhile' date=' the Dow at 800 in 1980 reached 12000 in 2000. So what works in one scenario might not work always.[/quote'] But if you see, Gold has held up best compared to all other commodities. Its right now trading in the $750-$850/ounce range, which is still only 25% off its peak price. But since 2000, when the current bear market in the Dow started coz of the bursting of the Dotcom bubble, Dow has gone from 43 ounces of gold to 9. ( Total Dow points/Gold price per ounce). And Gold has appreciated against every major currency, except the Dollar and the Yen. But most importantly, the major reason to invest in precious commodities is because there is only so much of them that is available. The price of a particular entity is determined by how rare/abundant it is. There is only so much Gold in this planet, but currency is different. All you need to devalue a currency totally is buy a couple of more printing presses and print a couple of trillion Dollars more, which is what the Fed is doing now to finance this bailout.
punjabi_khota Posted January 25, 2009 Posted January 25, 2009 Go for pure stocks over the next 6 months- tech and maybe pharma. Climb onto the 'Obama rally'.Then get into cash. Let's see what happens then. Lots of 'experts' expect a major defaltionary trend. In which case CASH is SRT :winky:. Of couse, all this is opinion :--D Wouldn't you expect the total opposite, since the govt is going to "stimulate" the economy by pumping money into the market ? Like trillions of dollars as stimulus ? Wouldn't that cause inflation instead ? Also, super low lending rates will contribue to it.
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