Goldman says we're headed for a recession

WRT Manhattan RE:

1. No-one's going to give poor people mortgages for a while.

2. I banks with subprime exposure (which I think does not include Goldman) won't make quite so much money for a couple of years. (I think Goldman are really gloating all these days)

3. It SHOULD become marginally more expensive to get mortgages for a couple of years (??) Though probably not much at all if you're wealthy, and the Fed keeps dropping rates to cancel out this effect.

4. Sluggish economic growth. Don't expect housing to appreciate as rapidly over the next couple of years (??) Though that's a pretty tough link to make: the falling US dollar will help the Irish carpenters buy all those new condos.

Nothing all that significant to us on this board, all in all.

Well put, masterq, well put. Your response sums up the cold, harsh reality of capitalism. Unfortunately, the Western ways of thinking are starting to undermine global society and humankind as a whole. Whatever happened to looking out for each other? Sharing the wealth (literally and metaphorically)?

I never thought I would say this--especially after being a born and bred NYCer--but I think it's time to leave this island and start living.

Uh...what era of "Western" history are you referring to that was marked by "looking out for each other" and "sharing the wealth"?

Hi kylewest,

I didn't mean to imply that "looking out for each other" and "sharing the wealth" are ways of Western thinking. They are simply principles that any caring and rational individual should aspire to live by.

Peace, brother.

I think the other "The Donald" would be disgusted by this one :)

LOL, good one masterq!

Cheers!

interesting perspective from a major lender....

http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=WFC:US&sid=aPIANQGGldOA

Yes but wahts most interesting about the article is the last paragraph.

Wells Fargo's largest shareholder, with an 8.3 percent stake, is Berkshire Hathaway Inc., the investment firm run by billionaire Warren Buffett. Berkshire added almost 22 million shares during the third quarter, according to a regulatory filing disclosed yesterday.

Now we all know Buffett ain't that smart.

yes he is. conservative well managed bank.

buffett passed on Hovnanian at $15 per share in july. the stock for that homebuilder is now trading at below $10 ($39 52-week high). looking at their 5-year chart, one might think the real estate market in the northeast peaked in september 2006. could it be true??

are u a better buyer or seller of the stock at these levels??

I was being sarcastic. I think Buffett understands a good value and knows to buy when everyone is so negative, scared and has basically thrown in the towel.