The Great Depression

[kass_rants]

Okay. Listen up! I don't care what the media has been screaming about. This is NOT another Great Depression. I'm going to explain to you why.

Kass's Top Three Reasons Why This is Not Another Great DepressionThe Great Depression began with the crash of the stock market in October 1929 (the crashes are always in October...). Many investors

Comments

No Panicking

[clothier16c]

It is so nice to read something sensible. The only other place I hear/see sensible talk is at....my stockbroker's. (no, I am not wealthy but my mother left stock and I have to deal with her estate and it is much much simpler to let the professionals deal with it.) I was there this morning and they were delighted to see me because, like Kass and a bunch of the peole who post here, I KNOW this darn thing is cyclical so I don't walk in or call in a panic.

To apply a FDR quote "The only thing we have to fear is fear itself."

I do think that applying a little Spanish Inquisition treatment to some of those CEOs would be justifiable retribution.

So when I got back and found the Kass Explanation & Advice I copied it and sent it to my stockbroker.

[celsa]

I'm trying to breathe my way through the anxiety involved in buying my first home (in Australia), hopefully before Christmas. I tell you, the international economic crisis (as it's being painted by the majority of the media) is making it hard to work out whether this is a great idea, as house prices may well drop over the next few years. Goodness, have you seen what's happening to the Aussie Dollar? It's dropped from something like 94 US cents to under 70 US cents, and falling!

But I'm currently renting, and rents are only going to rise regardless. I really want out of the rental market, so I've selected a loan on which I very easily handle the repayments, and I'm moving forward with the hope that the economic doomsayers are wrong.

[kass_rants]

I fully admit to knowing nothing about the Australian housing market. But if it operates like the market here, it should be fine. Get your mortgage from a reputable lender and make sure the payments are something you can afford on a budget. And since your country finally dropped the interest rate, you should be able to get a good rate on your mortgage now too.

A slowdown in the world economy is the perfect time to take advantage of bargain basement prices. It is the one bright spot about a recession. Even if the price of houses continues to fall, as long as you're not buying to sell in two to five years, you shouldn't worry about. Speculators shouldn't buy in this market. Long-term resident homeowners should be fine.

Re: Thank you

[kass_rants]

You're very welcome. Good luck!

[countess_adele]

Here's a thought Kass... since you have such a large following on the investment/ money end why don't you do a "Monday Morn'ing Money" page. I would think there would be many more people needing your input as to the state of the market/banks/investments, etc.

Ady

[kass_rants]

I do think about it, Ady. But I don't know if I'd want to do it if it became something I *must* do every Monday.

I will consider it, however. I could always use a hobby.

[pedropadrao]

I worked at the DC office of Clifford Chance (a large international law firm) from 2002-2006. A lot of our practice was in securities law & in building financing for large projects. My recollection of how things work here & overseas meshes perfectly with what you're saying. Keep it up!