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The Next Bubble?

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01-22-2008 , 11:22 AM

tippy

journeyman

Join Date: Jun 2005 Posts: 372

Well, it looks like absolutely no lessons have been learned. We head back down to easy money. Everyone blames Greenspan for the past bubbles due to his easy money, now we try to solve those problems with more easy money.

The floor is open to where the next bubble will develop due to Ben's inability to learn from history.

Vote for your favorite bubble candidate...

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01-22-2008 , 11:27 AM

The once and future king

Pooh-Bah

Join Date: Aug 2004 Posts: 5,585

Quote:

Originally Posted by tippy

Tis any chance of the Japan scenario?

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01-22-2008 , 11:32 AM

scotchnrocks

Pooh-Bah

Join Date: Mar 2006 Posts: 3,736

Iowa farmland

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01-22-2008 , 11:33 AM

gonebroke2

journeyman

Join Date: Dec 2006 Posts: 383

gold / gold stocks is my vote.

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01-22-2008 , 11:37 AM

Jeff28

journeyman

Join Date: Mar 2004 Posts: 224

My votes for current ongoing bubbles:

1. China
2. Gold and precious metals
3. Oil and oil stocks
4. Hannah Montana

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01-22-2008 , 11:48 AM

hawk59

veteran

Join Date: Mar 2004 Posts: 2,287

nobody can stop bubbles from happening, settle down

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01-22-2008 , 11:53 AM

tippy

journeyman

Join Date: Jun 2005 Posts: 372

Quote:

Originally Posted by Jeff28

My votes for current ongoing bubbles:

1. China
2. Gold and precious metals
3. Oil and oil stocks
4. Hannah Montana

As the father of a 5 year old, I am guilty of helping subsidize the Hannah Montana bubble...

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01-22-2008 , 11:57 AM

tippy

journeyman

Join Date: Jun 2005 Posts: 372

Quote:

Originally Posted by hawk59

nobody can stop bubbles from happening, settle down

Yes, you are correct, nobody can prevent them. However, reread the orignal post. We aren't talking about preventing them, we are talking about creating them.

This easy money is going to produce our next bubble. Fire up the old home equity ATM machine. The real job is to identify it before the herd...

Last edited by tippy; 01-22-2008 at 12:02 PM.

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01-22-2008 , 12:09 PM

stephenNUTS

banned

Join Date: Oct 2006 Posts: 3,290

Quote:

Originally Posted by tippy

The only problem with firing up the HELOC bubble is the housing market is still in HORRENDOUS shape,with many homeowners having tapped it out with zero to NEGATIVE equity in most cases

And on top of that this rate cut.... without banks lossening their "all of a sudden strict lending practices" it will not have as much of an effect as many people think

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01-22-2008 , 12:14 PM

#10

tippy

journeyman

Join Date: Jun 2005 Posts: 372

Quote:

Originally Posted by stephenNUTS

I don't know the condition of others, but I can say that if the rate comes down another percent, I will be in the refi crowd. I've got a ton of equity, a stable real estate market, excellent credit and a personal lender. You can bet I will be in the ATM line this time, along with a whole lot of others. Surely I can't be the only one. Either use the equity or lose it...

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01-22-2008 , 12:18 PM

#11

hawk59

veteran

Join Date: Mar 2004 Posts: 2,287

Quote:

Originally Posted by tippy

Money is 'easier' when rates are lower but low rates is not what caused the credit problem. I can guarantee the next bubble is going to have nothing to do with the home equity ATM machine or real estate at all.

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01-22-2008 , 12:22 PM

#12

stephenNUTS

banned

Join Date: Oct 2006 Posts: 3,290

Quote:

Originally Posted by tippy

Tippy I def. agree with YOU refinancing at these lower rates ....but I would venture to say though that you are MUCH more the exception rather than the rule

What are the current rates/deals with regard to refi's regarding credit rating/available equity/etc?

GL,
Stephen

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01-22-2008 , 12:27 PM

#13

tippy

journeyman

Join Date: Jun 2005 Posts: 372

Quote:

Originally Posted by stephenNUTS

Good question. I'll put that on my list of things to do this weekend and try and report back.

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01-22-2008 , 12:51 PM

#14

Fishhead24

veteran

Join Date: Jan 2007 Posts: 2,899

Quote:

Originally Posted by scotchnrocks

Iowa farmland

As stated for two years......predicting the bubble will occur around the fall of 2009........at which time i will be liquidating 75%+ of these holdings in all probability.

The stock market declining and lower interest rates are two positive factors for this land market currently........that and high grain prices.

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01-22-2008 , 12:53 PM

#15

Fishhead24

veteran

Join Date: Jan 2007 Posts: 2,899

Quote:

Originally Posted by Fishhead24

Considering this land has gone up for eight straight years, and 50% in the last 3 years, makes for a certain bubble at some time in the future.........as with all markets.

Hope you got in when the time was right.

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01-22-2008 , 01:32 PM

#16

stephenNUTS

banned

Join Date: Oct 2006 Posts: 3,290

Fishhead.....do you drink heavily,do drugs or on any type of prescription medication prior to posting?

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01-22-2008 , 01:58 PM

#17

DcifrThs

Chip Spewer

Join Date: Aug 2003 Posts: 15,812

Quote:

Originally Posted by The once and future king

Tis any chance of the Japan scenario?

not really. no.

we'll fall harder and rebound quicker.

Barron

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01-22-2008 , 01:59 PM

#18

DcifrThs

Chip Spewer

Join Date: Aug 2003 Posts: 15,812

Quote:

Originally Posted by tippy

As the father of a 5 year old, I am guilty of helping subsidize the Hannah Montana bubble...

i'm a 27 y/o single male (i.e. not married) and even i know who hannah montana is. that bubble is already in existance

Barron

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01-22-2008 , 02:01 PM

#19

DcifrThs

Chip Spewer

Join Date: Aug 2003 Posts: 15,812

Quote:

Originally Posted by tippy

you've made a massively important assumption that i disagree with. care to guess what it is?

Barron

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01-22-2008 , 02:17 PM

#20

maxtower

Carpal \'Tunnel

Join Date: Sep 2005 Posts: 7,996

I am 28, single, male... I have heard of Hannah Montana, but fortunately I don't know who she is. There may still be some headroom left there.

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01-22-2008 , 03:21 PM

#21

tolbiny

Carpal \'Tunnel

Join Date: Mar 2004 Posts: 10,448

Quote:

Originally Posted by maxtower

I am 28, single, male... I have heard of Hannah Montana, but fortunately I don't know who she is. There may still be some headroom left there.

My 32 yr old single brother was in vegas over the weekend when there was apparently a Hannah Montana concert, he couldn't afford tickets though.

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01-22-2008 , 03:38 PM

#22

DcifrThs

Chip Spewer

Join Date: Aug 2003 Posts: 15,812

Quote:

Originally Posted by tolbiny

My 32 yr old single brother was in vegas over the weekend when there was apparently a Hannah Montana concert, he couldn't afford tickets though.

soon, if this keeps up, loving, adoring parents will have to choose between hannah montana stuff and saving for a college education

Barron

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01-22-2008 , 04:44 PM

#23

ahnuld

Carpal \'Tunnel

Join Date: May 2005 Posts: 17,592

you *******s made me google hannah montana

And tippy, I dont think the issue is cheap money now, but how long they leave it at these levels. I think greenspan was correct to reduce the rate below 2%, but keeping it there for that long was probably a mistake. Id be suprised if that happened again.

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01-22-2008 , 04:59 PM

#24

maxtower

Carpal \'Tunnel

Join Date: Sep 2005 Posts: 7,996

I think the next bubble (already there?) is in commodities. They are already high, and now the fed seems like they are going to be fanning the flames for a while longer.

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