Market Meltdown

[cooter]

You have to see this to believe it. Jim Cramer loses it on CNBC.

+ YouTube Video

[TinGull]

Holy cow! He's lost it.

[Reaver]

!!!!!!


Wow man that is rough. He is struggling.

I work in the mortgage industry...and in my opinion, people shouldn't have been so greedy. Just like in trading- Pigs get slaughtered. I am not trying to be callous, but hey, if you go and act like these homebuyers did in the trading arena, you are going to get your @$$ handed to you and someone is gonna take your money because you are not using your brain to make educated decisions.

The company I work for doesn't do subprime lending and we don't have any issues at all right now. We do not lend on those crazy terms that you see on TV and in the news and every time you log into Yahoo Mail.

I see it all day and every day in the lending industry ( Consumer lending and mortgages) it all boils down to people overstepping their means. This has been happening for years and years and years, and now the market is suffering and the country is in chaos because of this debacle.

As much as I believe the government should have said something to consumers or prevented the misleading advertising from these mortgage companies. It all boils down to personal responsibility. If you make $45,000 a year, you know damn well you can't afford a $450,000 house. If you have to do stated income and embellish your income levels to get into a house, then you know damn well you can't afford it. It is common sense, and now all these people with a victim mentality want to blame the mean old mortgage companies for their financial woes.

Sorry but where I come from, you read contracts before you sign them. Period. Nothing happened to any of these people on their mortgages that was not on the contract and closing docs they signed.

Shame on the predatory agencies and the government regulators that fell alseep at the wheel and allowed this to happen, but any way you cut it- no one signed the contracts but the buyers. And now its time to pay the piper.

But this is no different than trading the markets- YOU are responsible for your financial decisions. If you want to shoot from the hip and make dumb trades without having a solid basis, then YOU take the loss and its no one else's fault, no matter what the course or book you bought told you to do.

Just like in trading- if you blindly follow what someone else tells you, you will get fed to the wolves.

It pays to do your own due diligence, whether trading, shopping at WalMart, or buying a house.

Sorry if this sounds callous, I don't mean it to sound that way. I just have a unique perspective, as I work in the industry, and I see some major parallels to trading.

P.S. I seriously suggest you all check out the movie "Maxed Out" it's a documentary about the credit situation in America and how it is so political and predatory. There are some major eye openers about how the government is mixed in with the lobbyists to set this whole game up. Once again though- No one can make you sign anything but yourself. You have to think to survive in this world.

Mods please delete this if it is too offensive, I just feel very strongly on this issue and believe individuals should be educated on credit more than they currently are. The odds are against us, unless we take responsibility and study and fight hard. Just like in trading.

[cooter]

	Quote:	Reaver
	P.S. I seriously suggest you all check out the movie "Maxed Out" it's a documentary about the credit situation in America and how it is so political and predatory. There are some major eye openers about how the government is mixed in with the lobbyists to set this whole game up.

From the promotional trailer:

"Maxed Out takes viewers on a journey deep inside the American style of debt, where things seem fine as long as the minimum monthly payment arrives on time. With coverage that spans from small American towns all the way to the White House, the film shows how the modern financial industry really works, explains the true definition of "preferred customer" and tells us why the poor are getting poorer while the rich keep getting richer. Hilarious, shocking and incisive, Maxed Out paints a picture of a national nightmare which is all too real for most of us. "

+ YouTube Video

You can watch the entire film on this thread:

http://www.traderslaboratory.com/for...html#post16101

[notouch]

Cooter you should have nominated that in the funniest video thread. He must have lost a lot of money that day.

[Nvesta81]

House Of Pain.

[Reaver]

Yeah that would have won my vote.

[Soultrader]

Holy cow.... I totally feel his emotion though. As much as I dont necessary like this guy, he's been in this game a long time.

[BlowFish]

I remember Maggy Thatchers legacy in the UK when the bubble finaly burst late 80's I guess. Coupled with aggressive short selling of the £ and the chancellor raising rates to try and prop it up. Interest rates where double digit (I believe mortgage rates actually hit 17%). There where a whole bunch of people in a huge world of pain. Scotch got me through it and I don't even particularly like Scotch!

Really makes you wary of over leveraging in that particular arena.

[Jakew]

Well, that's definitely something else. You do not see too many Anglosaxons acting like that