The Kiyosaki Crash

[randallg99]

Great Bear hit the nail on the head ... Wall street and its good ol boys club made potentially hundreds of billions from mortgage securizations and this very much overlooked fact needs to be reminded so we can put it in perspective...wall street didnt make this money out of thin air and didnt force people to use their products and there was absolutely no incentive to stop mortgage lenders from aggressively seeking buyers/home owners while the frenzy alone had home owners shopping for mortgages like they shop pricing for canned soup.... cant blame the brokers since they filled the huge niche

This said - the blame cannot be placed squarely on any one aspect of the frenzy since the dynamics of the market always gyrate in aberrations and the masses are the conduits... home owners, mtg brokers, wall street, agents, flippers, investors, contractors, home builders and everyone else involved created an entire cycle... we are all guilty as charged, but nobody is taking the rap.... but we really should ignore the fact that functioning idiotic eff-ups of our society made these unbelievably horrific, stupid decisions after being inspired by reading RDPD or some other article by RK without doing any proper DD, or even doing any simple risk analyzing ... these who didnt do what they were supposed to do are the ones that are at fault since we are each ultimately responsible for our own actions regardless of how much of our ineptitude shows through...

so blame RK for this bullshit? thats the easy way out, isnt it? ... lets give a fine example of our decision making ability as a society... a whole different thread here is dedicated to a poster in this forum contemplating spending $8k on a special RK 3 day seminar on how to make money in real estate... I dont think RK needs a real estate crash anymore nor does he even need to buy any buildings for cash flow since he has enough people making terrible decisions with their money that all he has to do is speak for a few hours and doesnt have to absorb any risk in real estate!

and so what if Wall St closed half of the mortgage businesses... they were bought for peanuts on the dollar in exchange for equity and the write offs dont mean all that much since they already paid for themselves many times over.... this part I realized later, after I played the wrong side of the investment firms...

 

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[kimberland]

Markets go up.
Markets go down.
It is the nature of markets.

Thank you!
If its not real estate, its dot coms or tulips or...

And its about the average person not truly understanding supply, demand and pricing (and the lags).
One of the reasons, I believe, the rich get richer is because they have a solid understanding of suppy and demand.

 

[Jason_MI]

Thank you!
If its not real estate, its dot coms or tulips or...

And its about the average person not truly understanding supply, demand and pricing (and the lags).
One of the reasons, I believe, the rich get richer is because they have a solid understanding of suppy and demand.

That, and the rich don't whine, blame, or 'hope'; they plan, modify, and implement while searching for new opportunities.

 

[kimberland]

They all worked their way back, the first guy is now a billionaire, Donald Trump also staged a comeback, and the Florida guy made a comeback.

But what they all I believe learned, which the first guy specified, was never to put yourself into debt.

Did they learn not to put themselves in debt
or to not overextend themselves?

Everyone gets greedy.
Everyone, once they get a string of successes,
starts to think they can't make a mistake.
They then push past their expertise or break a few of their own rules.
(True of companies as well as individuals)
And then they pay for it.

Heck, I, with less zeroes, do the same thing.
Think I'm all that, get wrapped up with a cyclical stock I don't understand,
and get my head handed to me.

 

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[Russ H]

Bear, you may want to start a separate "frozen water thread" if this gets out of hand. :smxB:

-Russ H.

 

[kimberland]

I'll have you know that my little ice stock is doing quite well,
thank you very much,
despite the currency exchange issues
(Cdn stock, U.S. income).

BTW... ice stocks may not be cyclical
but they certainly are seasonal.
I buy after a winter reporting period
when everyone is worried that sales aren't as high as during the summer.

It was my drilling services stocks that slayed me.

 

[WheelsRCool]

Did they learn not to put themselves in debt
or to not overextend themselves?

Yeah, they learned not to, I am glad I learned that from them so I hopefully won't! The one guy became a billionaire through becoming a resort developer, so I am including that as one way to become a billionaire in the future when I have more capital

I swear, all this reading and so forth has completely changed my outlook on life. Now, everytime I see an industry in crisis, I reason, "How can I make money in this, what opportunities are there?"

When I read about what the "hot" industries are likely to be for employment over the next decades, I reason whether I can start a business in them.

 

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[randallg99]

I'll have you know that my little ice stock is doing quite well,
thank you very much,
despite the currency exchange issues
(Cdn stock, U.S. income).

BTW... ice stocks may not be cyclical
but they certainly are seasonal.
I buy after a winter reporting period
when everyone is worried that sales aren't as high as during the summer.

It was my drilling services stocks that slayed me.

I am assuming you are talking about Arctic Glacier... I let it go waaaay too early. Congrats for holding on to it.

 

[EasyMoney_in_NC]

That, and the rich don't whine, blame, or 'hope'; they plan, modify, and implement while searching for new opportunities.

Agree'd, and lets face it, if everyone (lenders, RE agents and RE buyer - investors or not) did the "right" thing and "responsible" thing.......no one (including any of us) would make money. The world takes all kinds to go around. Sometimes you pay and some times you get paid. Understanding what it is one is getting into helps in achieving the latter more often than not.