DragonSlayer

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    • Sat Aug 2nd 00:16 AM | Rating: 0 0
      Commented on:
      3 Investment Ideas for the Rest of 2008 and 2009
      Very poorly written article. It seems like someone in high school wrote it while researching their "economics" project. In fact, it looks very similar to what my nephew in high school would write. Some gems from the article:

      "Think about electric......"

      "For societies to move forward, they must have constant sources of energy, preferably those which are cheap, clean, and safe"

      Not a hint of research, and not a hint of any kind of vision as to what asset class might do well over the next few years.
      View article »
    • Tue Jul 29th 09:14 AM | Rating: 0 0
      Commented on:
      Housing: No Bottom Yet in Sight
      The rescue of Fannie and Freddie will allow scams like the following to continue, because banks can continue to pass off questionable loans to the taxpayer now. The raising of the mortgage limit to 729K has made this possible. This scam took place early this year, regardless of the hysteria about "sub-prime". Please check the following link:

      www.ocregister.com/bus...

      The scam works like this:
      1. Find someone with good credit and not much knowledge of English or with poor reading comprehension. Tell them they will be able to buy a house and make 50K in cash.
      2. Buy the house at auction for 300K after foreclosure, probably close to fair value at this price.
      3. Mark up the house to 600K, and loan the buyer 125K to satisfy the 20% down requirement. Cut an appraiser and a loan agent in on the deal.
      4. Wells Fargo approves the 500K mortgage since the buyer paid 20% down, and he/she has good credit, and they do not want to seem anti-minority or get sued!
      5. The "buyer" pays the scammer 500K - 50K = 450K.
      6. The scammer makes a cool 150K profit.
      7. Wells Fargo does not care since they are going to bundle up the loan and sell it to Fannie Mae or Freddie Mac, ince their conforming mortgage loan limits went up to 729K for jumbo mortgages.
      8. "buyer" goes out and buys a nice 50 inch LCD TV and sends some money home to Guatemala.
      9. The "buyer" suffers a job loss/divorce/deportati... problem and the house goes into foreclosure
      10. The foreclosed house now ends up on Fannie Mae's balance sheet, and is sold for 325K at auction, and the remaining 275K is added to the US taxpayer account.

      Chinese and Vietnamese language newspapers are full of these ads where a "buyer" is solicited and a cash offer is made. Now if Fannie and Freddie Mac were private entities, they would not ask for an independent appraisal and reject the loan. Still wonder why you pay taxes?
      View article »
    • Mon Jul 21st 12:33 PM | Rating: 0 0
      Commented on:
      India's Strong Growth Should Continue
      Seems to be a very amateurishly written article. I would recommend proof-reading the article and using spell-check before posting the article. India is a socialist country, where profits are looked upon as a "bad thing" by a very significant section of the population. A society which revels in poverty. The stock market valuations, even after the recent drop, are much higher than established markets like those of Taiwan and South Korea. India has its own asset bubbles. I think people should short the Indian markets, and they would make a lot of money this year.
      View article »
    • Sat Mar 15th 00:44 AM | Rating: 0 0
      Commented on:
      5 Reasons Why the U.S. Dollar Will Weaken Further
      This is for DragonMaster. I think you are right. It is well known that the US population will contain 50% blacks and Hispanics by 2040-2050. However, I think this would mean that manufacturing jobs will actually come back to the US. There will be intense competition for the low-paying manufacturing jobs by these population segments above, and labor rates will head towards 4-5$/hour instead of the current $15-20/hour. Also, given the increasing cost of oil, and also the political situation, it will be overall cheaper for US companies to move manufacturing back to USA. The US is still the largest market in the world by a huge margin. Chinese consumption will take a very long time to match US consumption because the cultural nature of Chinese is to save and not consume. So manufacturing in China will decline or stay flat as the US imports less. I think India and Russia will however do better than China since their exports are software and other high end products. Since the blacks and Hispanics in the US are mostly low-skilled, and will probably stay that way, they will have a tough time competing in that area. However, I know many Russians and Indians still want to come to the US, and if the talented ones end up being here, then they will be able to keep the US competitive at the high end. The decline of the US is greatly exaggerated.
      View article »
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