Comments on: Prophetic shorts

By: soju

soju — Thu, 17 Dec 2009 19:09:36 +0000

#94 Herb

The banks got bailed out because too many ignorant individuals couldn’t pay for the loans they applied for which created a credit crunch for financial institutions. If not for the number of fools the system would have been fine. A mortgage is a 25 to 35 year responsibility. The same could be said for all the animals at the SPCA. If it wasn’t for the need of immediate satisfaction and ignoring the 10 to 15 year responsibility we woudn’t need these shelters.

Every action has a reaction. Unfortunately these days people blame and expect the government to pay for their actions.

By: Tony

Tony — Thu, 17 Dec 2009 07:28:17 +0000

Next year around the 5th or sixth of january you have to be short stocks. The P/E ratios are a complete joke and will *not* improve over the next two years. Rona is as close to a sure thing as you can get. The government grant runs out i think February the first 2010. Rona instead of closing stores has actually built more. Well very soon they’ll be closing plenty i guarantee that. I peg the move on the stock down to the 5 dollar area at which time i would take half profits and hold the rest until the stock falls to the 2 dollar area.

By: absinthe

absinthe — Thu, 17 Dec 2009 01:58:25 +0000

@Soju, 82 – it may be that it is the “sheeple” and not the system, but any system that contains people must work for those people. Design: it matters.

Living in and loving a “perfectly logical system” which is human unfriendly is a good way to find chaos. People are what they are; it’s no use wishing we were computers. We aren’t, and won’t be anytime soon.

People are specialists, with areas of ability and areas of ignorance; the physiotherapist may be brilliant at physio but bad with numbers. Many trust other experts; constant suspicion and relearning the wheel would be a huge waste of time. So, there are many who trust the experts in their lives – maybe getting two opinions, but after that trusting the docs who say it’s nothing or the banker who says, “sure, you’re good to pay off 5X income, that’s the new normal.” They’re the experts. This blog, sad to say, has been the fringe – although finally the story is changing and people are coming to their senses.

By: Hunkered Down In Milton

Hunkered Down In Milton — Thu, 17 Dec 2009 01:45:29 +0000

To Popeye # 43

Thanks for posting its always interesting to see what Garth’s blogs generate in terms of comments and ideas.

As a long time renter I can say I really do understand the first half of your comments. I was extremely motivated to stop having money go up in smoke. I am equally lucky to have a partner in life who is smart parsimonious and prudent.
That said I will add to my email in the blog with the following: There *might* possibly be a case for 5/35 IF the cost of housing were not surging well past the 4 x gross earnings point and interest was at near term historical averages closer to say 10%. If the oft quoted rent/own argument could hold up in those conditions and you can get yourself out of a roach hotel… hey GO FOR IT!

On another note thanks to the blog dogs who posted regarding short strategies!

In closing lets keep the discussion going! To quote the past there really is no wealth like knowledge and no poverty like ignorance.

Cheers all

Hunkered… AKA Hunky.. but only to my wife Garth! :)