Comments on: The Jack Ass and the Herd http://www.patrickprecourt.com/2008/03/the-jack-ass-and-the-herd/ The blog of a preforeclosure expert! Wed, 26 Mar 2008 18:31:26 +0000 hourly 1 http://wordpress.org/?v=3.0 By: FrankForzano http://www.patrickprecourt.com/2008/03/the-jack-ass-and-the-herd/comment-page-1/#comment-8 FrankForzano Wed, 26 Mar 2008 18:31:26 +0000 http://www.patrickprecourt.com/?p=12#comment-8 Thanks SoCalGal! If so, then not even the great Warren Buffet saw what was happening in the mortgage market until it was too late. Still - I'm not going to cry that the sky is falling until I see unemployment, inflation, and interest rates rise quickly and substantially. Irrational exuberance is going to give way to irrational panic and, if we play our cards right, we will be able to invest at the beginning of the next "irrational exuberance" cycle. Thanks SoCalGal!

If so, then not even the great Warren Buffet saw what was happening in the mortgage market until it was too late.

Still – I’m not going to cry that the sky is falling until I see unemployment, inflation, and interest rates rise quickly and substantially.

Irrational exuberance is going to give way to irrational panic and, if we play our cards right, we will be able to invest at the beginning of the next “irrational exuberance” cycle.

]]> By: SoCalGal http://www.patrickprecourt.com/2008/03/the-jack-ass-and-the-herd/comment-page-1/#comment-7 SoCalGal Wed, 26 Mar 2008 18:00:21 +0000 http://www.patrickprecourt.com/?p=12#comment-7 And, Frank? Berkshire Hathaway is exposed to MBS through its substantial investment in a couple of banks, notably Wells Fargo Bank. http://www.coattailinvestor.com/members/holdings/holdings.aspx?c=BH And, Frank? Berkshire Hathaway is exposed to MBS through its substantial investment in a couple of banks, notably Wells Fargo Bank.

http://www.coattailinvestor.com/members/holdings/holdings.aspx?c=BH

]]> By: SoCalGal http://www.patrickprecourt.com/2008/03/the-jack-ass-and-the-herd/comment-page-1/#comment-6 SoCalGal Wed, 26 Mar 2008 17:49:11 +0000 http://www.patrickprecourt.com/?p=12#comment-6 <> Au contraire. 7% of Berkshire Hathaway is invested in mobile home parks and self-storage units. And, yes, the wealthiest man in the world is smarter--at least in how to make money--than you and me. <>

Au contraire. 7% of Berkshire Hathaway is invested in mobile home parks and self-storage units.

And, yes, the wealthiest man in the world is smarter–at least in how to make money–than you and me.

]]> By: SOALGUY http://www.patrickprecourt.com/2008/03/the-jack-ass-and-the-herd/comment-page-1/#comment-5 SOALGUY Wed, 26 Mar 2008 16:51:51 +0000 http://www.patrickprecourt.com/?p=12#comment-5 Warren along with his twin Bill Gates, have the money, but they also both have the concomitant morals of a jackal. Because of their diseased LIBERAL minds...they cannot discern right from wrong. Be careful of who you think is smarter. Murder is murder...it's not just a legal term. They both condone, applaud and endorse abortion. My hero was penniless, (Mother Theresa), but she was blessed with just enough knowledge and common sense to do the right thing. Warren along with his twin Bill Gates, have the money, but they also both have the concomitant morals of a jackal.
Because of their diseased LIBERAL minds…they cannot discern right from wrong.

Be careful of who you think is smarter.

Murder is murder…it’s not just a legal term.
They both condone, applaud and endorse abortion.

My hero was penniless, (Mother Theresa), but she was blessed with just enough knowledge and common sense to do the right thing.

]]> By: FrankForzano http://www.patrickprecourt.com/2008/03/the-jack-ass-and-the-herd/comment-page-1/#comment-4 FrankForzano Wed, 26 Mar 2008 16:30:02 +0000 http://www.patrickprecourt.com/?p=12#comment-4 "People much smarter than you and me" also encouraged investing in internet stocks with unrealistic P/E ratios and companies that never made a dime. "People much smarter than you and me" with MBAs and financial backgrounds obviously didn't see this mortgage mess coming either. I - and many of us - saw this coming two years ago. Overpriced homes being financed with adjustable rate mortgages at 100% (no equity) by people with low credit scores was just begging for trouble when the economic cycle started its downturn. A recession is generally 2 consecutive quarters of negative economic growth which, too my knowledge, hasn't happened yet, though it is on the way. Inflation is around 6% as opposed to 14% in 1980. Unemployment at 4.8% as opposed to 9% in 1973 and 10% in 1983. In fact, when Reagan was re-elected with a record landslide in 1984, part of it was for bringing unemployment DOWN to 7.4%. People can still finance a home for a 5%-6% interest rate, as opposed to the double digit interest rates of the 1980s. Those who think things can't get worse are in for a shock when the economic hard times REALLY hit. The current economic downturn is just starting - no recession yet, but soon - and is part of an economic cycle that is an intrinsic part of the free enterprise system. Fortunately, I am old enough to remember the economic downturn of the early 90s and, this time, I am prepared for the bargains coming our way and the economic expansion to follow. To my knowledge, Warren Buffet, who is "smarter than you and me" is not a Real Estate investor, nor did he invest in Mortgage Backed Securities. “People much smarter than you and me” also encouraged investing in internet stocks with unrealistic P/E ratios and companies that never made a dime. “People much smarter than you and me” with MBAs and financial backgrounds obviously didn’t see this mortgage mess coming either. I – and many of us – saw this coming two years ago. Overpriced homes being financed with adjustable rate mortgages at 100% (no equity) by people with low credit scores was just begging for trouble when the economic cycle started its downturn. A recession is generally 2 consecutive quarters of negative economic growth which, too my knowledge, hasn’t happened yet, though it is on the way. Inflation is around 6% as opposed to 14% in 1980. Unemployment at 4.8% as opposed to 9% in 1973 and 10% in 1983. In fact, when Reagan was re-elected with a record landslide in 1984, part of it was for bringing unemployment DOWN to 7.4%. People can still finance a home for a 5%-6% interest rate, as opposed to the double digit interest rates of the 1980s. Those who think things can’t get worse are in for a shock when the economic hard times REALLY hit. The current economic downturn is just starting – no recession yet, but soon – and is part of an economic cycle that is an intrinsic part of the free enterprise system. Fortunately, I am old enough to remember the economic downturn of the early 90s and, this time, I am prepared for the bargains coming our way and the economic expansion to follow.
To my knowledge, Warren Buffet, who is “smarter than you and me” is not a Real Estate investor, nor did he invest in Mortgage Backed Securities.

]]> By: SoCalGal http://www.patrickprecourt.com/2008/03/the-jack-ass-and-the-herd/comment-page-1/#comment-3 SoCalGal Wed, 26 Mar 2008 02:49:24 +0000 http://www.patrickprecourt.com/?p=12#comment-3 Someone much smarter than you and me recently said that we are, in fact, in a recession: http://tinyurl.com/2cec3k NEW YORK (Reuters) - Warren Buffett, chief executive of Berkshire Hathaway Inc., said on Monday that "from a common sense standpoint right now, we're in a recession." Speaking on CNBC, Buffett said the United States might not be in a recession from a technical standpoint but, based on what he sees from the businesses Berkshire Hathaway manages, the economy is contracting. That doesn't mean one can't "act now" and "create the change" but facing the facts head on is a necessary part of doing that, in my opinion. Someone much smarter than you and me recently said that we are, in fact, in a recession:

http://tinyurl.com/2cec3k

NEW YORK (Reuters) – Warren Buffett, chief executive of Berkshire Hathaway Inc., said on Monday that “from a common sense standpoint right now, we’re in a recession.”

Speaking on CNBC, Buffett said the United States might not be in a recession from a technical standpoint but, based on what he sees from the businesses Berkshire Hathaway manages, the economy is contracting.

That doesn’t mean one can’t “act now” and “create the change” but facing the facts head on is a necessary part of doing that, in my opinion.

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