$30,000 loan

t_mo · 10-18-2008, 10:37 AM

It still sounds like you could be setting yourself up for a world of hurt...

But who am I? Do whatever you want, take 30k and put it on black!

Labelskate · 10-18-2008, 11:15 AM

buy gold.

it is supposed to be $2000/ounce in a year from now. Right now I believe it is about 1k an ounce.

It has been increasing 20% a year since 2001.

PBbackagain · 10-18-2008, 12:16 PM

stocks..

morreo · 10-18-2008, 01:56 PM

Quote:

Originally Posted by Labelskate

buy gold.

it is supposed to be $2000/ounce in a year from now. Right now I believe it is about 1k an ounce.

It has been increasing 20% a year since 2001.

Wow, do not listen to this guy. Labelskate, do you even know what effects the price of gold? Do you even know that the drying up of credit will cause massive deflation which will hurt the price of commodities? It is pure IGNORANCE to say that gold "is supposed to be $2000/ounce in a year from now". You say that with absolutely nothing supporting you.

That's like saying in 2000, "Buy tech stocks because it is supposed to be thrice from where it is now next month. It has been increasing over a hundred percent through '99.

Besides gold is trading over 25% from $1000 so no, it's not trading at $1000.

Can people please not on post on pure ignorance. This guy is making a very serious decision.

DOPE · 10-18-2008, 10:59 PM

Quote:

Originally Posted by morreo

It is not smart to enter the market on borrowed money.

Then you are just borrowing money to buy something that you need to borrow more money on. How the hell do you think we got into this mess that we call the economy? Plus you won't get rent that is more than the mortgage

true dat.

... buy gold.

Nocturnal Terror · 10-19-2008, 06:51 AM

Quote:

Originally Posted by morreo

It is not smart to enter the market on borrowed money.

I DO agree that CD's and preferred stocks are fine investments.

If you want to enter the market no matter what, then you MUST hedge your investment. You MUST write off covered calls against any and all shares you buy or you MUST buy puts. Both of these hedging strategies still give a good amount of risk so in my opinion, preferred stocks are your best option.

As for buying a house and renting it off, I disagree on that too. Then you are just borrowing money to buy something that you need to borrow more money on. How the hell do you think we got into this mess that we call the economy? Plus you won't get rent that is more than the mortgage, hence you will be paying more money out of your pocket and you may not be able to sell the home when your loan is due. (YES THAT'S A HUGE RISK!)

QFT

theubernoob · 10-19-2008, 03:46 PM

Quote:

Originally Posted by Labelskate

buy gold.

it is supposed to be $2000/ounce in a year from now. Right now I believe it is about 1k an ounce.

It has been increasing 20% a year since 2001.

i'm never going to buy gold.

i guess i'll look into these preferred stocks. i've heard of them but i'm not well educated on them.

and i'm not thinking of the money as borrowed money, i'm thinking of it as ahead start money. so i'm not doing these things with money that isn't mine, its just i'm getting a chance to do things earlier than i would out of school

DOPE · 10-19-2008, 03:56 PM

Quote:

Originally Posted by theubernoob

i'm never going to buy gold.
and i'm not thinking of the money as borrowed money, i'm thinking of it as ahead start money.

think of it anyway you want- it's still borrowed money.

what about foreign currency? know any countries on the rise?

caliro121 · 10-19-2008, 06:52 PM

Quote:

Originally Posted by DOPE

think of it anyway you want- it's still borrowed money.

what about foreign currency? know any countries on the rise?

I hear Iceland is in a new bull market.

berry_wendel · 10-19-2008, 07:13 PM

Quote:

Originally Posted by theubernoob

i'm never going to buy gold.

i guess i'll look into these preferred stocks. i've heard of them but i'm not well educated on them.

and i'm not thinking of the money as borrowed money, i'm thinking of it as ahead start money. so i'm not doing these things with money that isn't mine, its just i'm getting a chance to do things earlier than i would out of school

People need to change their viewpoint about debt and credit. Yes, sometimes it is necessary and useful. But people have not been thinking about the risks.
You seem to have no financial knowledge, let alone knowledge about investing.
Use that money for which is meant for. That would be moving to a new place, getting an apartment, finding a job and a sensible car.

Scootscr15 · 10-19-2008, 10:38 PM

Go to vegas and put it all on red. If you win, bank!

Its been done

pimp3leet · 10-19-2008, 11:23 PM

I bet he got soooo ****ed up later that night.

mulletstation · 10-19-2008, 11:57 PM

You should probably get some credit cards too and take cash out on those.

flipflapjack13 · 10-20-2008, 12:17 AM

I would recommend something safe right now because you would be essentially be making from just holding someone elses money lol. Plus,it's way too risky right now.

Quote:

Originally Posted by pimp3leet

I bet he got soooo ****ed up later that night.

And if he didn't win, he would've committed suicide

Stupid2k5ers · 10-20-2008, 01:40 AM

Quote:

Originally Posted by Calin

There are no riskless investments.

What about T-Bills?

theubernoob · 10-20-2008, 06:38 AM

Quote:

Originally Posted by berry_wendel

People need to change their viewpoint about debt and credit. Yes, sometimes it is necessary and useful. But people have not been thinking about the risks.
You seem to have no financial knowledge, let alone knowledge about investing.
Use that money for which is meant for. That would be moving to a new place, getting an apartment, finding a job and a sensible car.

I can't see stocks falling much further. Everybody is flipping out about how bad the economy is and everything. Yes, we're in a downturn and a whole market got ****ed, but in the big picture we're doing alright. **** like this has to happen. The stock market can't go up and up forever. It has to be reset so why not buy when it's reset? Why wait for it to look good to buy? Isn't that the worst time to buy? It just seems like people only buy when the market looks good and sell when the market looks bad, I think it should be the other way around.

I'm definitely gonna look into buying a house and a cheap car, but why not take advantage of this market.....

Calin · 10-20-2008, 09:57 AM

Quote:

Originally Posted by Stupid2k5ers

What about T-Bills?

That is the only part of my post you read? Yes US Treasury bonds are suppose to be the most riskless investment you can find. People are questioning it, but I beleive that no matter what if the US can't actually make good on bonds it will go ahead and turn on the printing press to avoid losing its riskless status.

With that said to clarify myself. There are still no riskless investments outside of US Treasury Bonds.

morreo · 10-20-2008, 09:59 AM

Quote:

Originally Posted by theubernoob

I can't see stocks falling much further. Everybody is flipping out about how bad the economy is and everything. Yes, we're in a downturn and a whole market got ****ed, but in the big picture we're doing alright. **** like this has to happen. The stock market can't go up and up forever. It has to be reset so why not buy when it's reset? Why wait for it to look good to buy? Isn't that the worst time to buy? It just seems like people only buy when the market looks good and sell when the market looks bad, I think it should be the other way around.

I'm definitely gonna look into buying a house and a cheap car, but why not take advantage of this market.....

Because it's on borrowed money.

Look, I agree that we are at the bottom and I truly believe we will NEVER see these prices in the DOW again, but that doesn't make me go take as many loans out as I can to put it in the market. It doesn't matter what I know and it doesn't matter how often I am correct. The fact of the matter is, any financial expert will say that is a horrible decision.

Stupid2k5ers · 10-20-2008, 10:47 AM

Quote:

Originally Posted by Calin

That is the only part of my post you read? Yes US Treasury bonds are suppose to be the most riskless investment you can find. People are questioning it, but I beleive that no matter what if the US can't actually make good on bonds it will go ahead and turn on the printing press to avoid losing its riskless status.

With that said to clarify myself. There are still no riskless investments outside of US Treasury Bonds.

My apologies, I was just being a sarcastic *******. Everything else you said is 100% spot on.

pimp3leet · 10-20-2008, 11:54 AM

Just do it dude.

GenericFactoryTeam28 · 10-20-2008, 12:32 PM

I think if you are so confident you want to invest it, then you should just do it. I am not sure why you are coming to ST:I to rationalize your decision...investing is a personal choice and if you think that you want to invest by taking out loans by all means go ahead and do it. Just don't say others didn't try to warn you.