2007 Q3

MAJOR MOVEMENTS

This past quarter was spent socializing and paying off debt. It’s not a good feeling to be in debt because I was constantly wondering whether or not the cash flow is enough to last through the next month. After sitting down and doing some calculations, I decided to stop everything and went back to a minimalist living style. If I hadn’t taken that measure, the debt combined with certain deadline would’ve crippled me.

THINGS TO NOTE

The US housing market collapse is seeing some light at the end of the tunnel. After the higher echelons of sub-prime, prime and major banks all declared their losses, we are now seeing the last stage in action: homebuilder fire selling and home buyer mortgage defaults. After that, we just wait for some type of depression in 2008. These are all predictable because of housing sector’s past histories. I am more worried about the recent rise in lax lending practices of credit card companies and a second coming of the high-tech bubble.

CHANGE OF DIRECTION
No Change,