Upside Down world. Housing a great buy. US Government record income!

[jefa_IHB]

Ok, say Dow goes down to 5000. What will that mean?



Record income to the US government in the form of capital gains taxes resulting from people selling all their holdings at once.



And, if you had money in the stock market and removed it from the stock market to fully purchase your house, a smart move because you only lost 20% on your house as compared to 50-60% in the stock market.



And maybe housing was a good long term buy if we go into hyperinflation on top of all of it.



Of course, government income would only hit a record for the year of panic selling. But still. Counterintuitive.



Anyway you slice it, I don't see how any responsible person does well in any future scenarios. The only winners here appear to be gamblers.

 

[jbenko_IHB]

<strong><blockquote>The only winners here appear to be gamblers.</blockquote></strong>



Right on. Its fun eh? Thats why to me fundamentals-fuzzdamentals are out the window. Markets these days are casinos.

 

[stepping_up_IHB]

That's assuming that the sellers of stocks had a capital gain. You would have had to have the stocks for quite a few years to sell them today at anything other than a loss. My guess is that holders are still holding.

 

[jefa_IHB]

[quote author="stepping_up" date=1223685015]That's assuming that the sellers of stocks had a capital gain. You would have had to have the stocks for quite a few years to sell them today at anything other than a loss. My guess is that holders are still holding.</blockquote>


I know plenty of 55 year olds who are pulling out completely. Have held since they were in their 30s, 40s. The people who are most likely to hold are people like me in their 30s, or early 40s. And can't have been in the market that long. So I think we are seeing sell offs from the longest term holders. (At this point).

 

[optimusprime_IHB]

If you have a gun, you will be a winner. A bigger gun, you are a bigger winner.



Go watch Mad Max.

 

[acpme_IHB]

it's also massive amounts of deleveraging, probably a lot of it not by choice (margin calls).

 

[optimusprime_IHB]

[quote author="acpme" date=1223691761]it's also massive amounts of deleveraging, probably a lot of it not by choice (margin calls).</blockquote>


Add redemptions and just raising cash.



BTW...great manipulation today.

 

[no_vaseline_IHB]

[quote author="jefa" date=1223682798]The only winners here appear to be gamblers.</blockquote>


You rang?

 

[acpme_IHB]

not that it wasnt obvious but...



Mutual Fund Withdrawals a Record as Investors Flee (Update1)



By Sree Vidya Bhaktavatsalam



Oct. 9 (Bloomberg) -- Investors pulled a record $52.1 billion from U.S.-managed stock and bond mutual funds in the past week, seeking the safety of government-insured bank deposits as the financial crisis worsened.



Shareholders took $43.3 billion from stock funds and $8.8 billion from bond funds in the week ended Oct. 8, according to data compiled by TrimTabs Investment Research in Sausalito, California. The exodus followed $72.3 billion of outflows in September, the most in a single month. Investors deposited $185.5 billion into bank accounts last month through Sept. 22, TrimTabs said, citing U.S. Federal Reserve data.

 

[ventouxbob_IHB]

[quote author="optimusprime" date=1223690787]If you have a gun, you will be a winner. A bigger gun, you are a bigger winner.



Go watch Mad Max.</blockquote>


9mm carbine. and 600 rounds. that ought to keep the raiders away.

 

[Strom_IHB]

[quote author="acpme" date=1223696326]not that it wasnt obvious but...



Mutual Fund Withdrawals a Record as Investors Flee (Update1)



By Sree Vidya Bhaktavatsalam



Oct. 9 (Bloomberg) -- Investors pulled a record $52.1 billion from U.S.-managed stock and bond mutual funds in the past week, seeking the safety of government-insured bank deposits as the financial crisis worsened.



Shareholders took $43.3 billion from stock funds and $8.8 billion from bond funds in the week ended Oct. 8, according to data compiled by TrimTabs Investment Research in Sausalito, California. The exodus followed $72.3 billion of outflows in September, the most in a single month. Investors deposited $185.5 billion into bank accounts last month through Sept. 22, TrimTabs said, citing U.S. Federal Reserve data.</blockquote>


Isn't it a little late for that? I mean, where were these people a year ago?

 

[Shooby_IHB]

Man, ventouxbob, everytime I come across a post by you, I need to scroll down rapidly.



The burdens of reading IHB at work.

 

[acpme_IHB]

[quote author="Strom" date=1223703344][quote author="acpme" date=1223696326]not that it wasnt obvious but...



Mutual Fund Withdrawals a Record as Investors Flee (Update1)

</blockquote>


Isn't it a little late for that? I mean, where were these people a year ago?</blockquote>


my guess? the mall.