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Permalink Reply by Krkyoldhag on April 30, 2012 at 5:31

Big news supposedly, was WSJ touted gas stocks as a buy.  Well, a broker in Rockwall Tx said that over two weeks ago.  I am old and I have seen a lot.  some expert said on TV that housing prices won't rebound in "our generation".  I was award winning Realtor in Dallas in 72..can promise you  it will. Don't listen to these so called experts.  They have missed every trend. 

The boomers have distorted ideas.  Give you an example.  I own land clear of debt.  One of them approached me back in 80's...insisting that his college business courses gave him wisdom.  He wanted to build a chicken business..Would get contract from Tyson's Chicken, a loan for $300,000, using my land for collateral, build this huge complex and raise chickens..He had even figured out what his salary would be from "profits" or operations.

I laughed at him.  Told him..anytime you had to borrow $300,000 to provide yourself with a job there was something wrong.  End of story?  There are chicken houses scattered around rotting.  People who got into these deals lost their money.  I still own my land ....I still work.  I didn't go into debt to get a job.  I also bought half the house I could afford.  And am not sitting "under water" on it.

People will always demand homes.  Instead of paying 25% of income for housing (as we suggested back then) the boomers demanded more house.  They were not content to start in "starter homes" and build an equity.  They played craps with their money and lost.  You simply cannot pay $300,000 for a $45,000 cottage..no matter what the so called market says.  You will do just what these young know it alls did..end up paying for or walking away from a 255,000 debt. 

But if you think I am wrong, go to Home Depot and start looking at prices of items you would need to build your cottage.  Then go out and see what you can buy for those prices.  Refuse to be suckered into a low interest loan  on a way over priced property.  Live in a tent if you have to.  The market will rebound. 

The bank failures were well predicted ..just nobody listened. 

Gas stocks will go up  and in next couple of weeks.  Whether someone is "making a market" on them I can't figure..but the reality will be stocks will go up.

Housing sales will rebound.  Might be for $45,000 instead of the $300,000  ...reality might be taking over.

But tax payers should be wary of efforts to force them to pay the banks for their "losses"....on those housing loans.

Don't make your life choices on experts advice.  Use common sense.  Learn to play canasta with friends instead of paying
$100 a month for 300 channels of junk on TV.  Cook a roast for $12 that will feed family for several meals instead of spending $8 at a fast food place for 4 people.

Feed your kids juices instead of sodas.  Refuse to drive 90 miles to a game.  There..see I saved your $150 right there.

Now, sock that money into a housing fund..and wait for a deal.

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Permalink Reply by Max on April 30, 2012 at 7:51

Kykyoldahg, I need some advice if you're giving it away for free.  What gas stocks should I buy before next week?  I was thinking about buying Chesapeake, but after that post about Aubrey McClendon, I've changed my mind. 

Let me know as soon as you can, I have to make a payment on my chicken house, even though there hasn't been any chickens in it for years.  I took some expert advice from the kid down the road to borrow money and build chicken houses.  Turns out the kid was wrong about my return profit and now I'm under water on the chicken farm. 

I don't even eat chicken, but he used a lot of big words and it all sounded good.  He said I would be able to lay on the beach between two palm trees and a airplane would come by and drop money on me every time he sold my chickens.

I was real excited for awhile there, because if an airplane was going to drop money on me laying on the beach, I would have enough to pay my mortgage on my new house too.  That didn't happen.  I never got to go to the beach neither.  

The last letter I received from that kid had a return address from Texas Corrections Center, Huntsville, Texas.  He was telling me he knew of a gas well to invest in.  I think I'll stick with stocks, so hurry up and post the good one's, kykyoldhag.

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Permalink Reply by Krkyoldhag on April 30, 2012 at 9:24

So laughing.  Thanks for the smiles.  Sorry you fell for the A&M freshman's pitch.  Did you ever think that if an airplane was dropping money it might land in the surf?  Wire transfer would have been more efficient.  Well, all I can advise about Chesapeake  is that their management is certainly colorful. I would wait and see if another BHP deal might be in the works for them.  Would invest in THEM first.

But remember back in the first year of their coming on the scene it did appear they were paying top dollar for PR.  I thought the $20,000 an acre for leases was unrealistic.  Guess it was.  It did drive their stock prices up so it might have been for PR.

On investing in a gas stock...tho the broker pitched it to me couple of weeks ago I didn't bite.  (have to confess first reason was I was smart but that I didn't have money to risk was also a factor).  Hold on to your money. Not the time to play the market with family funds.  If Obama taxes dividends then I look for stock to drop more then it did today.

My daddy was wonderful guy.  He had some wisdom for a country boy.  Never eat your seed corn.  Put your money in dirt.  Watch what you pray for. I never planted any corn but I did put my money in dirt.  And the prayer thing was right on spot.

When I became a widow  A.G. Edwards handled my account.  I was put in the "widow's triology" of Airline, bank, Bell.  Well you how that worked out.  Republic Bank folded, Braniff Airlines is no more, and Bell broke up.  Now I invest in stuff I can see, touch, eat.  Oh and I bit for the Nuclear plant in Washington state.. big mistake.

I have worked since I was 15.  Never dreamed would live to be so old and kranky.  But since I still here I am trying to make the best of the time I have. And trying to benefit from some of the hard and expensive lessons I learned along the way.

For 74  I think I doing pretty good.   

I think you know exactly what to do with your money.  And Life..  May God continue to bless you. 

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Permalink Reply by JHH on May 1, 2012 at 0:28

All very very good!

jhh

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