Stock market/banking sector insanity - Page 2

Fr. Frank · #11 02-23-2008, 12:32 AM

Housing market is slammed. I began to build a house just before Katrina. Estimated cost to build was $165K INCLUDING a 20% fudge factor. Got held up after site approval permitting because of the state planning changes to the highway by my house in 20 years. After delay and hurricane, the house cost $272K to build. 2400 sq/ ft. Certified 165 mph wind loading on a 2-story "Cracker Style" wood frame house. Exterior framing is 2x6, 4x6, and 4x12 timbers, with the roofing trusses all bolted down to the slab with 5/8" threaded rods. (I built it to last)

After construction, it appraised at $387K including the waterfront on a lake.

Replacement cost of the building alone as of 12/07 is $327K, not including personal property.

Two years later, I have had it appraised again this past December by the same company. It now appraises at only $265K, That's $77K LESS than it would now cost to build it again, and $122K less than its value just 2 years ago. That's a drop in value of 32% in just two years.

And some people have it worse than I. I have a parishioner that paid $1.1 million three years ago for a house that appraised at 1.25 mil. That house recently reappraised for only $490K.

Yeah, things are bananas.

GetReel · #12 02-26-2008, 05:24 PM

Just returned from atrip to the lower Keys. Broker I meet with said values are down 30% and he has many sellers that are "inverted"; more debt then they can clear from a sale. With more than 35,000 empty condos along the east cost of Fla, it will take years to work off that much inventory, this will get worse before it gets better. Go fishin.

Fr. Frank · #13 02-26-2008, 05:44 PM

Jeff said

Quote:

...Go fishin.

I hear that.

Briguy · #14 02-29-2008, 01:45 PM

Wheat up 35%, THIS MONTH!!!!!!!!!!!!

Finster · #15 02-29-2008, 05:33 PM

Yeah, I was a little freaked when I went to the store to buy milk, bread, and eggs.

bigeasy1 · #16 03-01-2008, 04:15 PM

Now you have me scared capt'n Chuck.Everything i have,which isn't that much, is with Smith Barney,at least he's a friend and a very conservative type so i feel somewhat safe,(if thats possible).

I'm glad i bought my house twenty five years ago,for 35,000.I took out a Loc a couple of years ago,but only used around 20k of it.
My biggest concern,is wondering how I'm going to afford my fishing and fuel in the Seacraft,when i retire in four years.

Eleven years ago, at the age of 50, the company i worked at for twenty years went belly up.A victim of the big box guys.Buyers in the wholesale hardware industry jobs are kinda scarce,even more so when you're fifty.Now I'm working a full and part time job,and still not earning what i was before.Oh well,"you gotta do what you gotta do"

I rolled over my 401 with Smith Barney,and it was doing great,then 911 came.It came back somewhat since then,but now all this crap with the market now is driving it back down.

Now i've read that already, that several corn/ethanol refineries have shut down and some are filing for bankruptcy.Why is that?i thought it was the magic liquid,what a bunch of crap.

This ethanol thing is another big myth,it creates almost as many pollutants to make it,as it saves when burned in cars.Then there's the subsidies to all the farmers(big business),not to mention the high prices that we now have to pay for food at the grocery store.Anything made out of corn has skyrocketed.

And can someone please tell me why i have to take it up the a-s from Exon mobil,on both ends,one at the gas pump,and the other as a stockholder.
Which set of creeps are more responsible for the high costs of oil,the commodities traders or the oil companies.How come no one can really explain to me who is responsible for the daily increases in oil prices.

What,is there some wizard of OZ type guy,behind a big curtain deciding the price.Maybe we should just take over Mexico,and take their oil,hell,we're already supporting all their illegals, oh, "I'm sorry, i should have said undocumented workers.

Bigshrimpin · #17 03-01-2008, 05:59 PM

Briguy - do you think this period of "controlled" (or out of control) inflation is a planned solution to inflate our way out of the debt from the war spending and the mortgage/housing market fiassco? and maybe one reason we have such high fuel prices now? The folks at some of the community banks I work for seem to think that this crazy period is going to go on for another 18 - 24 months "before it works itself out".

Bigshrimpin · #18 03-01-2008, 06:12 PM

Quote:

And can someone please tell me why i have to take it up the a-s from Exon mobil,on both ends,one at the gas pump,and the other as a stockholder.
Which set of creeps are more responsible for the high costs of oil,the commodities traders or the oil companies.How come no one can really explain to me who is responsible for the daily increases in oil prices.

This was an interesting article about steve forbes predictions on oil prices in 2005.

http://www.telegraph.co.uk/money/mai...31/ixcity.html

Mr Forbes said the whole concept of the strategic reserve was pushing prices higher. "The speculators know now that no matter what happens to the price of oil Uncle Sam is there buying almost every day," he said. "Stop the buying and in fact throw some of that oil on the open market, boy that would throw it in turmoil and send the price down."

The oil market has become a target for investors, since the returns have been significantly higher than those from the stock or bond markets in the past couple of years. Fundamentally there is enough oil to go around. Stockpiles are full and Saudi Arabia has promised to step up production to 11m barrels a day.

"This is sheer bubble speculation. I'll be blunt, there's hardly a hedge fund in North America that hasn't speculated on oil futures," said Mr Forbes. He added that when prices did fall, the impact would make the dotcom collapse "look like a picnic".

Briguy · #19 09-15-2008, 01:43 AM

Damn, I told you to watch those Fannie mae and Freddie bonds.

Same advice I gave everyone on the board applies today. Thanks to all that called me. I hope my advice was taken to heart. It's going to be different from here on out. PM me if you need specific answers to your financial situation. Glad I could help.

Fr. Frank · #20 09-15-2008, 10:51 AM

I cashed in my two IRA's a month ago, one had lost 24% of total value in the first six months alone, the other lost 41% of total value over a year's time. In both cases, I got out LESS than I had actually paid in out of pocket. Then this morning I hear that my brokerage bank (Lehman Bros) has filed for Chapt. 11 bankruptcy protection.

Looks like I got out just in time.

I still have my house for sale, listed now for $30K LESS than it cost me to build it. Real Estate values here in Citrus County Florida fell by 15-17% in the month of June alone. If I don't sell between now and Dec 30, on Dec 31 I'll have to ask the bank to accept deed-in-lieu of foreclosure.