Oh man, it's been a while

You know, I regret not posting what I feel and my predictions for the past several months. Sorry.

So, summer is over, people are done spending money.

Here, let me say this. The end of the summer looked good, well of course. people went on vacation, spent money, stocks went up, well of course. Ah, but here comes winter, reality sets in. people are done buying clothes and supplies for school, some people are looking over their credit card bills saying, wow!

This will be the next blow to the financial industry, credit cards.

Being in the airport / taxi business I am not at all surpirised seeing more and more people using credit cards to get to and from the airports, they are running out of cash. Even though I add 20% gratuity and $5, people still want to use satans' plastic.

Holidays are just around the corner, things will pick up a little, but after that, whack! Another blow will come.

I think we will see home prices dip to 1993 levels, I think I posted this before, we will re-adjust.

Terrorism, job losses, poor Holiday spending will cause stocks to fall..

It's been a while since I have posted. Rights now it's Sunday 11/30/2008.

The dow is presently 8,829. On Monday, I predict good news will come out about people shopping on "Black Friday" but soon after, reports will come out again about job losses and more foreclosures.

Monday, stocks will rally and probably end up about closing 300 - 400 points lower, but they might even go over 9,000 points at sometime during the day.

During the middle of the week, bad news will come. By Friday stocks will close at about 8,200 to 8,500 points.

More terrorism will happen in countries or a country with strong ties to the US. Something weird is in the works with Russia.

If the dow hits 7,200 or below for more than 3 weeks, we are in big, big trouble.

I have a strong feeling about buying GM stocks, crazy as it may sound.

Oil will soon rise to about $55 a barrel as Opec cuts production to offset lack of consumption.

This slowing economy will effect everyone, even those with "good" jobs.

We are truly becoming more of a global economy in which we will become equal to other countries around the world. Standards of living will drop, people will have fewer children.

Some bad news coming today

Several pieces of data will be coming out today which will send jitters in the stock market. The dow will probably go down.

I have heard people saying that we are going to have a bad winter. If this is true, oil will go up. Opec and Associates are looking for any reason to increase oil prices.

Roller coasters do crash.. the Dow

So, the stocks took on over 900 points recently lost. Today, as I figured, stocks rallied a bit. I predict today the dow will close about 100 points down. Tomorrow (Wed) we will lose another 200 points. Thursday, the dow might close up 100 points but Friday, look out, they should close about 400 points down.

Sell what ever stocks you have. Stop contributing to anything, 401K's etc. Wait about 5 months.

Take a breather, pay off your credit card bills, all other debts.

Start buying less of what you really need, groceries etc.

Hold on to clothing longer, go to tag sales for clothes, tools etc. Take a train, bus or taxi when you need to get somewhere.

Feds cut rates to 1.5% SO WHAT !

Is cutting the interest rate going to bail us out of this financial crisis? No.

It looks good, I sit here and watch the S&P and NASDAQ going up about $1 every 30 seconds. This is just the market rallying.

Look at Asia, stocks plummeted.

2 TRILLION Dollars of pension fund investments lost. wow.

It's 9:53 and the dow is up 162 points, whoopie, we're saved, NOT.

We are in for long, hard times. We are truly becoming equal with the rest of the world.

I feel the dow will close down 100 points today. I think people are just rushing in to buy cheap stocks but at the same time, as the price of other shareholders stocks go up, they will sell creating this roller coaster effect.

Let's see what happens today.

The dow is "down" ! (as i predicted)

Wow, I hit this one on the head. In my posts in July and August I mention the down dipping below 11,000.

What's happening now is our "global partners" are also having to take a deep breath and wonder, "now what the hell do we do?"

Ha ha. Wow. This is going to get worse. 159,000 people lost their jobs in September. I also predicted this in my past blogs. Don't forget, I also mentioned in July that a report would come out about people falling behind on their credit card payments.

This will be another blow to the banks.

My solution, here is an idea:

1) Have the government buy 1 point off every one's loan for those people who purchased property between 2002 and 2007. Not on loans above $500 because these people should not have purchased a home for that much in the first place.

Here's an example. I'll use my loan. presently, my loan payment (30 year @ 5.25% LOCKED ) is $2167.05. If the Government lowers my interest rate by 1 point, making it 4.25% our mortgage payment, with taxes etc. would be lowered to $1974.21. That is a difference of $193.20 a month or $2316.00 per year.

Also, home owners should be givena tax credit of 2% of their current loan balance. If your loan balance is $420,000, you would get a tax credit of $8,400.00.

My wife and I are spending about $3,000 more for heating oil and gasoline just to get to and from work.

That's $3,000 right out of our pockets and the pockets of a million or more people.

This is exactly why people are losing their jobs. People have no money to put back into the economy. You want gas money to get to work or do you ant to go to the movies or out to dinner?. that's what it's come down to.

So, if the Government Really wants to help it's citizens, it needs to help the citizens, not the greedy banks who will receive money to give loans to people who have to have excellent credit. Due to this financial mess, most persons credit has been ruined, so we will have all this "loan" money which no one can touch except for, that's right, the wealthy.

get money back into the pockets of the MIDDLECLASS consumers!

The bailout will fail

For several months I have talked to many business owners who have said basically that business is terrible.



This bail out, whatever it is, will probably be passed. It does not crate jobs, it does not stimulate the economy. Is everyone forgetting that the average American family is spending like $5,000 more per year in gasoline? Are we forgetting that people have no money to spend because food prices have risen?

Want to save everyone? Give a break on people's loans. In other words, if someone bought a house between 2002 and 2007, let's face it, they paid too much. This includes me and my wife. We paid $349,000 for our house in 2005. I would estimate about 10% over what it was really worth.

So, if the government really wants to keep people in their homes, they should buy 10% of the homeowners current loan amount. Then the Government should give a tax credit of about 5% of the CURRENT value of the home to homeowners who purchased homes between 2002 and 2007 with loan amounts NOT exceeding $500K.

We do not want homeowners to lose their homes because they are, after all, the ones who pay property taxes.

This would also help the homeowners with daily living expenses, food, gas, etc.

Just my idea.