Chat with Joe Ross

U.S. Chat log from: Wednesday, December 2, 2009

Live Chat with Joe starts Wednesday at 8.00 PM U.S. Central Time!

	joeross joined.
joeross	Good evening everyone
Joy	Joe: Happy Wednesday evening to you!
Moose	Good Evening
sprink	Hi Joe
Joy	Joe: I hope you had a nice conference with Andy and found some time to rest after the Euro chat. :)
joeross	I've been reading about the real impact of the Dubai fiasco. It seems they owe trillions of dollars and have no intention of ever paying back. That means all of our bankrupt banks are doubly bankrupt now.
joeross	Joy: We talked a long time. Then I took a nap.
joeross	According to the weather report we are going to have snow in Austin
drago	but bank of america is going to repay TARP
Joy	Joe: snow! How wonderful! White Christmas for you Joe!
Airtime250	Hi Joe, Hi Everyone!
marsh	If it weren't for global warming, it would really be cold.
joeross	They are callin for 27f and snow on Friday.
Joy	Joe: WOW!
joeross	I'm freezing already and it's 70f in the house.
Joy	Poor Joe! You need a fire in the fireplace!
Joy	Airtime: My friend how are you? I hope you had a nice Thanksgiving.
Airtime250	Joe: Are you going to cover your plants?
joeross	I have a nice fireplace.
Airtime250	Hi Joy...It was a great Turkey Day
joeross	Air. Yes I am. But I might freeze solid by the time i can get it all covered. Can cabbages withstand a freeze?
Airtime250	I don't for sure but I think they will turn to mush...
joeross	Hi Nathan
joeross	They don't have any heads on them, just leaves right now
Nathan7	hi joe
Airtime250	I know that some plants will regrow depending on their stage of development
Joy	Joe: Wouldn't the leaves be very tender for the freezing weather?
joeross	drago : I just saw what you wrote. BOA will pay back TARP??? With what? BOA is broke.
drago	I well I just read it on CNBC.Com
joeross	Joy: I don't know. I never tried to nurse cabbages through a freeze before.
drago	Is going to pay $45, billion
Airtime250	I just found some info that certain varieties of cabbage can stand a frost and some may have an improved flavor...
Joy	Joe: I hope someone else can cover them for you. You have a wonderful garden and I hate to see the veggies suffer and you waste all the hard work :-)
Joy	Airtime: YOU are the man!
Airtime250	It doesn't say which variety...
joeross	The banks will not have to declare a loss on the trillions they loaned to Dubai World. In fact they are calling them assets. When is this insanity going to stop?
joeross	Wow! My cabbages will taste even better.
Airtime250	Let's hope so!
joeross	If not, I will have to learn to make Ice Tea out of the frozen leaves.
Joy	Joe: Assets! I wish I could owe a million and count as assets :-) Always the rich and famous get away...
joeross	Joy: If they admitted the losses they would all have to close their doors.
joeross	That's where a lot of the mutual fund, pension and trust money went, also the hedge fund money.
Nathan7	HSBC has some interest there
Airtime250	My son was there last summer and he said that it was mostly construction workers and not much for tourists...
joeross	I read that there is only 10% occupancy in all of the huge office buildings and condos that were built in Dubai. The construction workers have not been paid.
joeross	The 7 star hotel they built is practically empty.
Nathan7	they have no income tax
Joy	Joe: Maybe we can buy them cheap and rent them :-)
joeross	nathan: They have no assets or income to tax :-)
Nathan7	sounds like they have a future
Nathan7	just need rental rates to go down
marsh	Did they just borrow and build willy-nilly, with no thought that they would actually have to rent or sell those units?
joeross	Joy: You can buy million dollar mansions for 20% of what they cost to build
Joy	Joe: Maybe we should move there - a mansion for you and a mansion for me :-)
joeross	marsh: That's what they did. They went nuts trying to make it a showpiece for Islam.
drago	Joe did you know, if you want to go inside the hotel you have to pay $50 uds?
joeross	marsh: It was all done with derivatives on top of derivatives.
Airtime250	Who are the primary owners?
marsh	Now it's a cemetary for Islam, with the skyscrapers as the tombstones.
Airtime250	Good point Marsh...
joeross	Most of the money came from the US and was supposedly collateralized by the buildings themselves. But the Sheik of Dubai is telling them they are not allowed to repossess anything. So they have bad loans with no collateral. And those loans will not be paid back. So, I guess we are all the indirect owners--but can't collect.
Nathan7	default
Airtime250	Surprise, Surprise...
marsh	Time to send in the marines and conquer a few oil-laden countries.
joeross	The emirates have now stated that they will not cover for Dubai
drago	but the markets still goes up what happens?
joeross	In fact they are blaming the banks for giving them all that credit :-D
Nathan7	emirates want the emerites airline and the palm
joeross	Seriously, they are blaming the banks for lending them all that money without ever checking to see what was really going on.
Nathan7	he's mad at abhu dhabi and had a fit
joeross	drago: The markets still go up coz Wall Street and the Banks keep pushing them up.
drago	until when? (sorry for my english)
Airtime250	I'm hearing rumors that the Fed is going to hike interest rates as much as 2% by March
sprink	Whats pushing gold?
joeross	The markets will keep going up until there are no more buyers at the high prices.
joeross	Air: If they do the US will crumble.
marsh	Maybe BofA will issue a lot of stock and pay back their TARP debt with that, while the stock is inflated and overbloated artifically.
joeross	marsh: That's exactly what they are doing.
Airtime250	I would believe it...but that's the talk
marsh	So when the stock market crash happens, the gov will be left with useless paper.
drago	talking about that , did you saw in the last 3 o 4 weeks that the S&P has a Unusual Volume in the Stock Leaders, Joe in your oppinion this is this market is in distribution or in consolidation?
marsh	And the money from TARP? Where did it go? To bonuses or outright embezzlement.
joeross	drago: I really don't know. Nothing that is happening is making much sense. For example, why isn't the dollar rallying? The T-Bill and T-Notes were oversubscribed by a factor of 4. There were 4 times as many buyers as there were bills and notes.
joeross	To buy them you have to have dollars. But the dollar doesn't rise.
joeross	I suspect we are looking at the greatest deception in all of history.
Airtime250	Don't forget about the new wave of foreclosures that is likely to happen. 5 and 7 year arms are expected to have high reset rates and therefore force a negative debt service situation for many homeowners
joeross	There is no reason for gold to be rising, but it is rising. There is a huge oversupply of gold, and we are in a global depression. But it keeps rising.
drago	This question i have had make a lot of people who said they know the behaivor of the market and they have the same answer you have, I am nervous...
drago	sorry for my horrible english...
marsh	As I said on the afternoon chat, it will be very interesting if gold keeps going up after the stock market bubbles and crashes.
joeross	Air: Plus all the commercial real estate foreclosures that are happening. There are currently thousands of businesses holding on by a thread. Their hope was that black Friday and the Christmas sales would keep them alive. But if people don't buy you are going to see thousands of businesses closing their doors early in 2010.
Airtime250	I agree...the retail and commercial sectors are on the brink...
joeross	those businesses closing will cause a huge debacle in the commerical real estate market. But as with residential real estate, the govt. will let the banks carry the bad loans as assets.
drago	did you saw the reports about sales in the black friday? thay improve 5%
joeross	drago: Improve 5% over what?
drago	Over last yaer... yes mybe the base is not good but the improve and some retalers are very happy
joeross	You mean they had 5% less loss? That's like the govt. saying unemployment is getting better because only 250,000 more jobs were lost last month.
joeross	I would like to meet some of these happy retailers. I want to laugh with them all the way to the bankruptcy court.
drago	Joe i don´t live in USA but please guys some one tell me if they bought in the last week end?
drago	is it really the madness that we saw in TV ?
joeross	I went to the mall to see for myself, and there was hardly anyone there. The stores were quite empty of people. And Austin has not been nearly as hard hit as other parts of the country.
joeross	drago: I didn't see any madness.
drago	WOW...
joeross	You cannot believe what you see on TV.
drago	I use your word: belive want you see not what you think... is a joke...
drago	i mean what i see
Airtime250	Joe: There should be numerous ways to profit from these conditions depending on when things blow up. You've been down this road before...other than trading gold and equities, what other things should we be on the lookout for?
joeross	I am scaling into SKF. The financials will lead the way down and SKF is the double short ETF of the financial section. I'm also double short the S&P ETF
joeross	I just keep scaling in a few shares at a time. When the bubble bursts, I will buy Dubai for my personal playground :-)
sprink	Joe, do you still own DZZ?
Joy	Joe: LOL!
drago	and TWM?
joeross	sprink. Yes, but it is killing me :-(
joeross	What is TWM?
Airtime250	Thanks Joe...
drago	Ultra short of the Russell 2000
joeross	drago: TWM would be a good one also.
drago	may be in two o three mounths?
drago	it makes support again
joeross	It's just a matterof time. I still go by what I see on the charts. Every chart I see of the various aspects of the economy say it all has to come down. So I wait.
joeross	I believe the Dubai debacle will usher in phase two of the greatest depression in history.
drago	i have bought some today because it make a new low..
drago	Joe did you hear about greek (ateens is the capital ) maybe grece... sorry
joeross	The Arabs have created the most expensive ghost town of all time. It will fall apart and be a worthless place in the desert.
joeross	What happened in Greece?
sprink	Maybe they can turn it into a Disneyworld
drago	There is a Rumor that they are going to be the next...to be in dafault
joeross	sprink: Dismalworld would be more like it.
Airtime250	LOL!
sprink	Good one
joeross	drago: I can believe it. The global economy is beginning to unravel.
drago	domino effect?
joeross	drago: Yes, derivative domino effect. The global economy is a house of cards.
joeross	it's not just the US. It is global. Virtually all nations are going to ride this boat.
joeross	and the boat is sinking.
Airtime250	Joe: My wife wants to know who is going to plug the hole in the boat?
drago	but the central banks of all the countries are printing money like the woods are for ever...
drago	you know for the paper money
joeross	Air: I think the boat will sink. At some point we will begin a new civilization with whoever is left.
Airtime250	Book of Revelation...
joeross	Air; You got it.
joeross	I believe we are in that time that will be so bad that there has never been anything like it nor will there ever be again.
joeross	Good night everyone.
joeross	I need to catch some zzzzzzzzzzzzzzs.
drago	Good night Joe God bless you...
joeross	See you next week.
sprink	Nite Joe
marsh	Bye Joe, thanks.

Next Chat with Joe Ross:
Wednesday, December 9, 2009
Time: 8:00 - 9:00 P.M., U.S. Central Time.

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