599/430 Prices Crashing

Thank you Napolis for your views and advice...

Anybody that does not believe there is still risk out there, read this...

http://www.siliconvalleywatcher.com/mt/archives/2008/10/the_size_of_der.php#more

 

Believe what? What are we supposed to infer?

According to the article the net RE value in the world is abou $75 trillion and stocks are about $100 trillion. If somone is holding $1175 trillion worth of worthless derivatives, let them go out of business like Bear Sterns. How does it impact rest of us? I am more than happy to see these corrupt insttitutions go out of business.

 

from what i have read, he's outright wrong on enron. that was complete fraud based on MTM accounting and using off balance sheet and SPE to hide debt.

 

Yea! Let them go out of business! They made bad investments and they need to pay the price for that.

And when they do, one after another.... the value of all those derivatives goes to zero. The institutions holding those derivatives become insolvent and get liquidated. Who? Banks, Investment companies, REITs, Mortgage Lenders, Corporations large and small, Insurance companies large and small, college endowments, pension funds, 401K's, IRA's, Hedge Funds.......

They are ALL exposed. WE are all exposed.

But have no fear... the Govt. is going to bail everyone out including exotic car owners and all will be well.





Terry

 

There was an article written by Ben Stein on Yahoo regarding the Derivatives Market last week, very informative.

 

it is always more fun to drive/ride a slow car/bike quickly on a track than it is to drive/ride a fast car/bike slowly.

miata wins hands down in the fun factor.

a CS, or any other car of its ilk, offers different thrills

 

back to Jim's point... damn... looks like I might cut loose some of my vintage american tin and pick up a modern exotic.

Prices in the low and mid market american vintage cars are still strong. Seems like they were correctly valued in the first place. So my paddock value hasnt taken a hit.

a 360 or 550 for ~$70K? hmmmmmmmmmmmmmm.... thats damn tempting.

 

on a side note... several high end hot rod shops I know are still doing a bang up biz. No shortage of people wanting $200k+ hot rods. Some of the mid and low line shops are hurting a little but no one is talking about going under. There used to be a little bit of a wait at these smaller joints for a paint job or some custom work, now they can get you on the schedule within a week or so and are being a little more flexible with the pricing to get you in the door.

 

IF you believe the analysis you think you will not be affected? If you haven't noticed already the failure of several institutions and other issues have definitely spilled over to Main Street and is now impacting Elm Street... as in Nightmare on Elm Street.

The loss goes somewhere... people lose their jobs... they stop buying goods and stop going out to eat... more companies fold... more people lose their jobs... repeat cycle...

Fed and in fact most countries are trying to break the cycle before the whole thing seizes and crashes.

The real estate market was first, credit market could be next...
etc

 

+1. And in addition to the Federal gov't, something like 27 states and countless municipalities are "officially" in recession now with many more to come. Services decreased, taxes increased, etc. etc. etc.......

 

I havent read the enitre string, so this may have already been said: some of the the online sellers and local dealer are DELUSIONAL! Like dumb real estate brokers, they dont understand that Prices can and do fall.

 

I keep on wondering if they are delusional, or just waiting for a sucker.

 

I have a Murcielago lined up for $145K. It's no spring chicken, but that $100K less than they were just 18 months ago...

 

At the same time, it wouldn't be fair to have a whole industry (Wall Street) of people selling financial packages that never made sense to begin with. And too many have made tons of money doing it. There should definitely be more regulation moving on forward. Wall Street is glamorous, but most of the time, its a bunch of sales men selling delusional and meaningless packages.

 

I have been saving my acorns all summer and it is looking chilly outside right now.

 

Originally Posted by kosmo View Post
I havent read the enitre string, so this may have already been said: some of the the online sellers and local dealer are DELUSIONAL! Like dumb real estate brokers, they dont understand that Prices can and do fall.

Both actually. The informed are hoping, the uninformed are still enjoying the artificial thrill of the purchase. Add to the list the "have to cover debt" who wander between the informed and uniformed in a state of fear and the "I'll get my price or f**k off" richies who by over listing their cars strut their wealth. These are in Round Two of "thrill of purchase."

 

Hold out for $110K

 

Don't bore me with your daydreams and bubbly excitement about the carnage. It's offensive...

 

Boy, what a prick.

 

+1

 

It was a bubble. Like all bubbles it had to burst. Cars are not investments.

 

i see this thread was resurrected. someone had asked earlier for me to follow-up if i bought anything.

its an '02 and i got it from Cats, the board sponsor.
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Nice car!

 

I disagree. When I was a little younger, and could ride the quicker bikes, it was a lot more fun to ride the fast bike, slide it a bit than the slower bike. Remember, if the bike is slow, at some tracks what were corners that had to be dealt with when the bike was fast, aren't even corners for the slower bike. I remember one race at Sears Point in the 70s. I was riding a bevel drive Ducati (900SS), and was leading the race. I lost a cylinder. Times went from 2:03 to 2:12 on a bike that felt dreadfully slow. Why such a small difference: didn't have to shut off for a lot of corners that when both cylinders were working had to be dealt with.

However, now that I'm a little older, I think I'll take the Miata.....

Art