Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (38011)	2/7/2008 10:56:47 AM
From: BWAC	Read Replies (2) \| Respond to of 95804

<My point in posting it after chambers comments is that something seems to have gone wrong in january that is surprising bernanke, chambers, walmart etc. Even normal reporters are saying that home prices may decline nationally by 30% before htis is all over.> I understand. Here's my point though. Clicks on articals equal revenue. Fear you into reading them from the lure of dire predictions (ie playing on current fears) equals their revenue plan. Now that said, you are right something has changed. The banks are in a full blown panic and are cutting credit off. Don't know what the banks expect to accomplish from that. In simple terms Banks loan money, if they don't loan money they don't make a profit. If the economy comes to a stand still the banks do as well. Bernanke and the rest of the Fed Fools are not surprising. They haven't seen clearly or responsibily for years now. It didn't go wrong in January. It went wrong when rates went abnormally low, then proceeded to ramp up without pause. It went wrong when the Fed Fools stayed 6 months behind the curve and refused to cut rates when it was obviously necessary to everyone else involved. Business and discretionary spending came to a stand still while they waited on the Fed Fools to create better financial terms for them. Didn't you see this coming from 1% to the what was it 5.50% recent top? Couldn't you see what the Fed Fools did not? Home prices falling by 30% nationally. Ok yeah alright. Right after building products and labor fall an equal amount. 30% in bubble areas where a run down shack went for $1 Million has no bottom. 30% drops for insane properties that were bid up on pure greed and speculation means nothing. They might drop 70%. No joke. The flip side of that is areas where prices did not go to extremes, that would also be known as basically anywhere not in Cali, Fla, Vegas, and the desert. Prices did not double in the SouthEast, even despite the influx of people from high priced areas. You're still talking around $100 a square foot, (2500 sq ft for $250,000). You're just not dropping 30% from there without a similar drop in all construction materials, labor, land development costs, and some disaster like Bush declaring himself dictator for life <ng>.

To: michael97123 who wrote (38011)	2/7/2008 11:06:20 AM
From: Sarmad Y. Hermiz	Read Replies (2) \| Respond to of 95804

>> Even normal reporters are saying that home prices may decline nationally by 30% before htis is all over. >> socialist that i am Whether socialist, communist or capitalist, used home prices cannot be very different from new home development and construction cost. (minus some wear and tear, plus landscaping). If that figure is a decline of 30%, well, that was the right price all along. If that puts some folks in a bad situation, there is nothing anyone can do about it. They'll have to wait 5-10 years until inflation restores the nominal price.