Posted on: 12-12-08 14:46:09
Quote:
Originally posted by pratickm
Quote:If you walk into a barber shop and ask the barber whether you need a haircut, what do you think he'll say?
Originally posted by RBO
I got a news than in next year House market will go more down....but i am not sure how truth this news? I called one or two realstor and they told me "No....No.... this is right time to buy house next year everything will be ok and you would not get better deal."
right buddy, but depends on you if you want to cut your hair than he will cut....but if you are smart enough that you can tell your barber see you next couple of days..........
We were also thinking on same lines buy or not to buy, as home prices will come down and dekhte hi dekhte price to kum hui par mortgage "Prime -1" ke badle "prime + 1" ho gayi so I do not think we gained anything.
Soemone said rightly, if u r confident of ur job / savings etc. then go ahead.
Do not worry about that mortgage rate for now as Canadian economy along with rest of world is slipping in a much deeper recession and to kick start the economy not only Canadian govt but govt world over will not have any other option but to give a boost to real estate market. Therefore, prices as well as mortgage rates will come down significantly in coming months.
On December 16, 2008 US will be going to zero interest rate and other countries will soon follow the same.
Auto bail out did not get through and GM announced to shut 20 plants in North America for the month of January 2009 and reduced the production by huge 250,000 numbers and will be manufactuing instead of 750,000, in first quarter 500,000 only. And this will further get reduced in view of low demand and lots of restruturing which is going to take place in 3 Auto manufacturers to get aid from US/Canada. No surprises if One or two of them during this period might go under(bankrupt) resulting in huge job losses and layoffs which otherwise would happen due to reduction in manufacturing and restructuring in these companies. Alternatively all 3 could get merged become 1 company.
Could the Detroit 3 Become the Detroit 1?
http://www.businessweek.com/lifestyle/content/dec2008/bw20081211_580276.htm?chan=top+news_top+news+index+-+temp_news+%2B+analysis
GM to temporarily close 20 plants to slash output
http://www.businessweek.com/ap/financialnews/D951BEGG0.htm
Financial crisis of all time is also not yet over. Big players like Bank of America, Citi Bank, J P Morgan chase have terrible 4 quarter results and Morgan Stanley and Goldman Sach might not have any other option but to get merged. Credit losses in US alone is to the tune of 3 trillions.
Layoffs continue in almost all sectors including FMCG.
Latest announcement from the Federal Reserve where they bluntly stated that the sky’s the limit on how much money banks can borrow. And other central banks, including the Bank of England, European Central Bank, Swiss National Bank and Bank of Japan are joining in to basically give away money.
That’s right, no limit! It’s like the Central Bankers are running a casino, and the big banks — the same jokers who blew it all on toxic debt — are being given endless lines of credit to keep on gambling with no fear of losses.
Over Twenty five trillion dollars in global market capitalization wiped out from the world and More than $8 trillion of stock market wealth has evaporated from US itself. Trillions have been added to the United States' national debt.
The current bear market and economic turmoil have their own unique features that should probably keep investors cautious for a while. The global financial system is in the grips of a crisis not seen since the Great Depression. Investors have little idea what will fix the problem and aren't sure policy makers know, either.
Just follow Cash is king principle.
Keep well,
Cheers!
