Once the housing market goes down the toilet gold will skyrocket!

GUINZO1975 · September 21, 2007 2:24AM

I can't wait for the housing market to go down the toilet so the price of gold can skyrocket! Back in 1980 you couldn't touch an MS 65 Saint Gaudens for less than $4000 dollars. I think the same thing will happen again once people realize that their homes are not worth what they paid. The housing market will crash, the stock market will crash, people will lose their jobs, we will go into a recession and a possible depression. The fed is not helping matters by lowering the rates, however, this is good news for gold owners. Oh, and I forgot to mention that the worthless US dollar now equals the Canadian Dollar.

Coinsponge · September 21, 2007 2:31AM

My aren't you just a ray of sunshine.

droopyd · September 21, 2007 2:33AM

<< Oh, and I forgot to mention that the worthless US dollar now equals the Canadian Dollar. >>

So then I guess the Canadian dollar (aka "Canuck Buck" and "Loonie") are equally as worthless, eh?

coinsomniac · September 21, 2007 2:33AM

You don't happen to go by the handle of Iwog on a different forum, do you?

crito · September 21, 2007 2:34AM

And the majority of Americans who pay rent will have more disposable income so it'll be good for the economy too.

Coinsponge · September 21, 2007 2:36AM

You just want to unload all those $4000 saints you bought in 1980 don't you? Nothing like a little self centerdness to get my day going.

OPA · September 21, 2007 2:37AM

Mmmmm...my "worthless $" still pays the mortgage, gas, food & coins. Gold appears to have stabilized at the $730 level. Stock Market appears to be healthy with no signs of retreating. Financial markets appear to have, so far, weathered the sub prime mortgage question. Prime rate is down 1/2%.....30 years fixed mortgage rates below 7%.....The "sky is falling" ..... NOT.

crito · September 21, 2007 2:37AM

<< Nothing like a little self centerdness to get my day going. >>

Works for everyone else...

lathmach · September 21, 2007 2:38AM

Guess you've been away for a while, Gonzo.
The housing market has been in the toilet for a couple years now.

Ray

stckplunge · September 21, 2007 2:39AM

Always have to be suspiscious of those people with only 78 posts!!! You really dont know what your talking about until you have at least 124 posts!!!

Jeff

CalGold · September 21, 2007 2:49AM

<< The housing market will crash, the stock market will crash, people will lose their jobs, we will go into a recession and a possible depression >>

Let me get this straight. When everyone is out of work, penniless, and homeless they are going to run to coin shows and buy up MS65 Saints?

CG

Coinsponge · September 21, 2007 2:50AM

Oh, and I forgot to mention that the worthless US dollar now equals the Canadian Dollar. >>

Since the US dollars are now worthless you can send them to me for recycling. I'll even pay the freight.

Gemineye · September 21, 2007 2:52AM

<< I can't wait for the housing market to go down the toilet so the price of gold can skyrocket! . >>

Once you lose your home and your job what good is the gold you got stored?!?!......That is if you have some stashed away..!!..Your logic doesn't make sense.
edit ....the Fed could go another 500 bp... 1/2%

57loaded · September 21, 2007 3:04AM

<< I can't wait for the housing market to go down the toilet so the price of gold can skyrocket! Back in 1980 you couldn't touch an MS 65 Saint Gaudens for less than $4000 dollars. I think the same thing will happen again once people realize that their homes are not worth what they paid. The housing market will crash, the stock market will crash, people will lose their jobs, we will go into a recession and a possible depression. The fed is not helping matters by lowering the rates, however, this is good news for gold owners. Oh, and I forgot to mention that the worthless US dollar now equals the Canadian Dollar. >>

i'd rather put the DOW than buy gold myself

I hope you put all you have into gold TODAY, even max out your credit cards...gold gold gold

wikyva · September 21, 2007 3:07AM

If I lose my house and job ... will I be able to eat my gold?

fastrudy · September 21, 2007 3:14AM

Yes, gold is edible, silver is not edible (unless you don't mind blue skin)
linky dinky

pharmer · September 21, 2007 3:16AM

Satire is wasted here, guinzo, more's the pity.

wikyva · September 21, 2007 3:17AM

Cool! Now I don't feel so worried about the economy.

MadMarty · September 21, 2007 3:26AM

Don't fret! Hillary will fix it all in '09!!!!

pauljuno · September 21, 2007 3:27AM

<< Yes, gold is edible, silver is not edible (unless you don't mind blue skin) >>

Oh that would be so cool! I would look like Beast from X-Men!

Joflax · September 21, 2007 3:34AM

<< Satire is wasted here, guinzo, more's the pity. >>

Yeah , let them eat cake

GUINZO1975 · September 21, 2007 4:45AM

If you guys think that the Dow Jones will stay above 13,000 points, then you're living a pipe dream. One more thing........isn't it odd that the price of gold actually shot up when the interest rates were lowered by the Fed? Usually when the rates drop, the price of gold drops. The Fed lowering the rate was actually a rescue operation to save his Wall Street buddies. Lowering the rate will just postpone the inevitable and that is the price drop of the Dow Jones and coming recession. A recession is not a matter of if, but when. I know I don't have 1000 posts so I must be an idiot and I don't know what I'm talking about.

RotatedRainbows · September 21, 2007 4:49AM

The credit markets a pyramid scheme waiting to collapse?
Borrowing money with borrowed money??

crito · September 21, 2007 4:51AM

<< Yeah , let them eat cake

>>

Forget cake, eat the rich.

JJM · September 21, 2007 4:52AM

<< 1980 you couldn't touch an MS 65 Saint Gaudens for less than $4000 dollars. >>

yeah , but who will be buying when the economy takes that big of a dump?

CalGold · September 21, 2007 4:53AM

<< One more thing........isn't it odd that the price of gold actually shot up when the interest rates were lowered by the Fed? Usually when the rates drop, the price of gold drops. >>

Worng. Lower interest rates means that the economic or opportunity cost of holding gold (lost interest)goes down and the cost of margining a posistion of gold goes down, thus favoring a higher price of gold. Also to the exttent that lower interest rates are seen as favoring inflation and gold is seen as a hedge against iniflation, lower rates are another bullish iindicator for gold prices.

In contrast, recessionary indicators are bearish conditions for gold. When the economy is in the tank, people do not spend on luxury items like gold jewlery, coins etc., nor can they afford to hold non-income producing assets such as gold.

CG

Coinsponge · September 21, 2007 4:54AM

<< Don't fret! Hillary will fix it all in '09!!!! >>

Yes, just invest the national treasury in cattle futures and it's an immediate 10 bagger.

roadrunner · September 21, 2007 4:55AM

A very positive and uplifting original post.

We've only seen the first trickle down of the sub-prime crisis. It will be unwinding for a few more years.
This is unchartered territory. It will be interesting nontheless. Even if I lose my house and my job, I'd rather
have a pile of gold leftover than an empty matress. I might be able to trade it all towards an MS100 ASE.

roadrunner

OPA · September 21, 2007 5:00AM

<< If you guys think that the Dow Jones will stay above 13,000 points, then you're living a pipe dream. One more thing........isn't it odd that the price of gold actually shot up when the interest rates were lowered by the Fed? Usually when the rates drop, the price of gold drops. The Fed lowering the rate was actually a rescue operation to save his Wall Street buddies. Lowering the rate will just postpone the inevitable and that is the price drop of the Dow Jones and coming recession. A recession is not a matter of if, but when. I know I don't have 1000 posts so I must be an idiot and I don't know what I'm talking about. >>

Granted...we will have recessions in our lifetime...it's a normal economic cycle process ... but the rest of you remarks are just full of: bovine scatology

GUINZO1975 · September 21, 2007 5:03AM

Guys, I would like to add that in 1980, I was 5 years old and can assure you that I did not own any gold, especially gold saints. I really believe that gold will reach $1500-$2000 dollars an ounce easily. This is just my opionion and I am basing it on what is going on in the world today. I know the housing market is in the toilet now, but you have seen nothing yet. I'm talking about a major drop in prices and people losing everything. A total bloodbath. Here is another opinion, the Dow Jones is overpriced and it is the worst possible thing you can put your money into. These are my opionions, you don't have to agree. I would also like to add that I have total respect for the people on this board and they have tremendous amounts of knowledge in coins, etc. In fact, I've learned so much from the people on these boards and think you guys are awesome. I started coin collecting last year and I am a newbie in the hobby. I must say I had the best year ever in 2006. I got in on the Silver and Gold 20th Anniversary sets, the gold buffalo first strike, the W Uncirculated Platinum and Silver Coins. I did not know about the W Platinum sets, and I must thank EricJ96 for that. Many of you have opened my eyes to the coin collecting hobby and gold. Many of my decisions for purchasing coins were made because of the people on this board, and I thank you all for your input and wisdom.

Gemineye · September 21, 2007 5:32AM

GUINZO1975
I left Bkyln a long time ago....do not dispair.Enjoy your coin collecting...Don't worry..!! Be Happy..!!

elwood · September 21, 2007 5:55AM

If the economy will be a total blood bath that sounds deflationary to me??

And isn't gold a protection against inflation?

fishcooker · September 21, 2007 6:07AM

A recession is not a matter of if, but when.

And a bull market is not a matter of if, but when.

And a female president is not a matter of if, but when.

And ketchup on my hamburger is not a matter of if, but when.

I could go on, but it would still be just +1 on the ol' post count....

curly · September 21, 2007 6:16AM

GUINZO1975...Brother, you say you just got started in the hobby last year. I really do enjoy your enthusiasm but one year in the hobby doesn't make you an expert. Right now, I would say you are lucky more than anything else.

For a young brother, born in 1975, you are pretty good at making definite predictions. I'm a lot older than you and I can't even tell you what Mrs. curly is going to fix for supper tonight much less what state the world will be in a few years. Be careful, sometimes your reputation will ride on those predictions.

dbldie55 · September 21, 2007 6:21AM

More doom and gloom. Who needs gold when you have lead.

2ndCharter · September 21, 2007 6:32AM

I guess I'm old enough to remember the Harry Browne and Howard Ruff books from the late '70's where they talked about hyper-inflation and the imminent collapse of Western Civilization as we know it. I'm still waiting......

clouisejewelers · September 21, 2007 6:40AM

That's brilliant. Because it hasn't happened yet it will never happen.

I have never died so I will live forever.

September 10,2001 people were walking around arrogantly saying terrorists had never attacked America at home so they never would.

There are millions of examples that show the idiocy of your statement.

clouisejewelers · September 21, 2007 6:43AM

<< GUINZO1975...Brother, you say you just got started in the hobby last year. I really do enjoy your enthusiasm but one year in the hobby doesn't make you an expert. Right now, I would say you are lucky more than anything else.

For a young brother, born in 1975, you are pretty good at making definite predictions. I'm a lot older than you and I can't even tell you what Mrs. curly is going to fix for supper tonight much less what state the world will be in a few years. Be careful, sometimes your reputation will ride on those predictions. >>

Age has less to do with it than you think. Alan Greenspan, 81, recently said he did not see the subprime mortgage meltdown coming. He had access to more insider information than almost anyone on the planet and he couldn't predict what was going to happen? I am much younger than him and have been preaching doom&gloom about the housing market since 2004. Sometimes age and experience just make you arrogant and unable to think outside the box.

Deadhorse · September 21, 2007 6:50AM

<< Sometimes age and experience just make you arrogant and unable to think outside the box. >>

This statement makes me think of a name....... what is it now?

Oh yeah! GREENSPAN!

CalGold · September 21, 2007 6:50AM

So are you saying that we should value your economic analysis rather than Mr. Greenspan's?

Please let us know what your CV is, other than being younger than 81.

CG

Gemineye · September 21, 2007 6:55AM

<< 
Age has less to do with it than you think. Alan Greenspan, 81, recently said he did not see the subprime mortgage meltdown coming. He had access to more insider information than almost anyone on the planet and he couldn't predict what was going to happen? I am much younger than him and have been preaching doom&gloom about the housing market since 2004. Sometimes age and experience just make you arrogant and unable to think outside the box. >>

Alan Greenspan an Elitist who figured he can dazzle you with his brilliance but all along was baffling you with bullshut...!!!

clouisejewelers · September 21, 2007 6:56AM

How about I'm right, he admitted he was wrong. That good enough for you?

CalGold · September 21, 2007 6:59AM

Since most of the subprime loans that have gone into default in connection with the adjustment of the teaser rate are mortgages that arose after 2004, it would seem that you could not have predicted the current state of affairs in 2004.

CG

curly · September 21, 2007 7:10AM

clouisejewelers....brother, can you produce these "preachings" that you have been making since 2004? Shoot, any one can predict what happened yesterday.

derryb · September 21, 2007 7:22AM

Gold is spiking cause the dollar is going down the tube. Dollar is sinking cause Fed had two choices:
1. lower interest rates and save the financials (banks, wall street) but hurt the dollar
2. raise interest rates and save the dollar, but hurt the financials.
Since the banks (financials) own the fed, guess what the fed did?

IMHO, as the Fed kills the dollar's value all the foreign countries that we sold them to (via paper promises, notes, etc.) are going to want to cash in. Thus starts the spiral effect and then you will really see gold (and all commodities) move. If you ain't moved out of dollars by now, you really need to do some quick reading

Financial Sense
Safe Haven

and think about not necessarily trying to make money as much as protecting the value of what you already have. General concensus among economists is the next boom will be commodities (metals, oil, agriculture, etc.)

Just my opinion, but it is based on a lot of commentary from some very smart people.

clouisejewelers · September 21, 2007 7:49AM

<< clouisejewelers....brother, can you produce these "preachings" that you have been making since 2004? Shoot, any one can predict what happened yesterday. >>

Well, you can ask anyone of my friends or family members who are sick of hearing me preach this stuff. the earliest documented stuff I have of my ramblings is on Ben Jones' housing bubble blog where I have been lurking and making occasional comments under the name motorcityjim since March of 2005. That's a lot earlier than yesterday, and way earlier than any of the "experts" have been talking about the housing bubble.

http://thehousingbubbleblog.com/index.html

cmerlo1 · September 21, 2007 7:51AM

Who would want to buy toilet gold?

GUINZO1975 · September 21, 2007 7:52AM

I've been talking to people who have very good information. There is a real $hitstorm coming. The writing is on the wall. I have also done my own research. There is a web site called "PATRICK.NET". I suggest you guys take a look at the various articles about the current housing market and economic outlook on the web site. I consider the site to contain a wealth of information. I have also lived in Argentina in the 1980's and remember when houses were going for $300,000 dollars back then. At that time, houses in the United States were about $40-$60 thousand dollars. At that time, a lot of people made money and a lot of people lost money. They called it "Plata Dulce" or "Sweet Money". That same house, my father sold it last month and barely got $120,000 dollars for it. I see the same thing happening here. We have ridiculous housing prices and lots of people made money by flipping. I can assure that all the idiots that paid $750,000 to $1 million dollars for houses, are going to lose them. History repeats itself......... The Fed will lower rates again to bail out his buddies in wall street at the expense of the average citizen. The Dow Jones was tanking until the Fed lowered the rate. Like I stated before, that was a rescue operation.

clouisejewelers · September 21, 2007 7:56AM

<< Since most of the subprime loans that have gone into default in connection with the adjustment of the teaser rate are mortgages that arose after 2004, it would seem that you could not have predicted the current state of affairs in 2004.

CG >>

That's what I've come to expect of your posts. Nice assuming what I was thinking or doing in 2004.

Anybody with common sense could analyze by 2004 that housing was overpriced. Most people listened to the "experts" who had a vested interest in real estate prices rising. I looked at the situation and thought prices rising 20% per year or more was unsustainable. It's a simple matter of housing prices rising waaaaaaaay faster than wages. Eventually nobody can afford a house, even millionaires. It's just not going to continue forever.

Gemineye · September 21, 2007 8:13AM

<< ..... The Fed will lower rates again to bail out his buddies in wall street at the expense of the average citizen. >>

GUINZO1975
I don't think this is at my expense.It adds a few bucks in my pocket because if I have an adj rate loan and credit cards the rates will be lower.Mortgage rates will also be a bit lower.Bank to Bank loans will be lower .It's a win win...

clouisejewelers · September 21, 2007 8:21AM

<< 

<< ..... The Fed will lower rates again to bail out his buddies in wall street at the expense of the average citizen. >>

GUINZO1975
I don't think this is at my expense.It adds a few bucks in my pocket because if I have an adj rate loan and credit cards the rates will be lower.Mortgage rates will also be a bit lower.Bank to Bank loans will be lower .It's a win win... >>

Not necessarily. Most adjustable rate loans are based on LIBOR or the 10-year treasury. Check Yahoo finance or whatever site you use for stock quotes. The 10 year is up about .2% this week. The fed lowering the fed funds rate lets banks borrow money cheaper, not necessarily you. Foreign investors don't want T-bills due to dollar devaluation so are demanding higher rates.

The Fed helped its member banks at your expense, and convinced you it was helping you. The perfect crime.

Once the housing market goes down the toilet gold will skyrocket!

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