What effect has the CREDIT CRUNCH ?

you ask a very good question.

The biggest factor right now for the economy is consumer confidence. That is why President Bush was on tv today. He made a speech. You see he thinks he knows about the economy.

What was his answer to get us out of the recession? He said to spend. On top of that he pointed out that Americans have a hefty check coming their way from the government and they want everyone to spend it right away.

Reality check Mr. President, for families paying for goods and energy costs thru the roof, $600. is not a hefty amount. It certainly won't make much difference in most folks daily lives. Whats $600 gonna buy? Maybe pay up the electric bill.

The $600. is just more smoke and mirrors. They want the money to perc thru the economy to raise consumer confidence.

We are shell shocked by the commodity prices, energy prices, food prices tuition prices jumping high and a few hundred dollar handout to stimulate the economy is not going influence us to go out and buy any more items on long term credit.

So your question in my view is a good one. Domains are being bought and sold. Some are buying them as they see the future rewarding them for doing so. Others are selling them as they see this benefitting them to do that. Its difficult to say if domainers would be better off if recession or down turn was not happening.

maybe the value of creditcrunch.com will be worth more...lol :D

What effect has the CREDIT CRUNCH ?

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It gets soggy in milk.

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

At this point I am starting to feel that we may be nearing the bottom of this. Still a lot of trama yet to come in the housing / mortgage areas, but with interest rates down adjustable rate mortgages are not going to adjust very much. Now it is more a case of investors being afraid to move, there is lots of credit available. Slowly I expect buyers to come out of their shell. The moron-removal scheduled for next January in Washington DC will help, also.

Of course the US government is trillions of dollars in debt, the country has trillions of dollars in balance of payment shortages to other countries, the US people are in debt to their eyeballs, Social Security and Medicare are running out of money, and the money printing presses are running 24/7 ...

But I think the boat will float for a while yet. Yes there are problems and stresses, and to a family out of work or losing their home it is a catastrophe. But I do not see the major cracks in the system that would indicate a collapse. The Bear Stearns near-bankrupcy was minor compared to what happened in 1929.

A market collapse is usually signified by a very large one day fall, with the day's close at the bottom of the range. I do not think that they have had anything like that.

The stockmarket leads the economy by about 6 months, and it seems to be calming. I think we are going to be OK.

This time.

goodkarmaco said:

Some are buying them as they see the future rewarding them for doing so. Others are selling them as they see this benefitting them to do that. Its difficult to say if domainers would be better off if recession or down turn was not happening.

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It reminds me of the Dot Com bust 6 years ago.

Here is some tasty free treats

accentnepal,

all good points except the comment that the Bearn Stearns bailout is nothing compared to the great depression.

It is the same.

Economists have stated if the Bearn Stearns bailout was publicly known, (not dealt with behind closed doors with the U.S. offerring the bailout) all hell would have broke loose in the money markets. That intstitution going BANKRUPT would have definetly caused the stock market to crash just like it did in 1929. They knew that (Bernenke) and to save their asses (the U.S. dollar) the bailout happended.

My point is we have a economy not based in reality anymore. Its print money to solve all the problems coming up because the current government turned our greenback into worthless wallpaper. Now they are papering Wall St with it.

True markets cannot be manipulated by the printing press without having a bad effect in the long run. The end result is going to be economic meltdowns that will impact every nation.

If domainers sell names at todays prices and we get really big inflation, (this can happen very quickly) the dollars earned will be worth less and less and a domainer may find his purchasing power has been lowered to a great extent.

How can such a large banking investment company go down so fast? The economy is on the verge of runaway inflation. Without the fed CONSTANTLY propping up failing markets we would now be up a creek witout a paddle.

What does their bailouts to the tune of hundreds of billions of dollars over and over again really say about the situation for our economy?

It says you are getting a little more time to get your house in order.

It won't be the three little pigs huffing and puffin at your home. It will be big changes for the world. It does not matter if government acts like the wicked witch and feeds Hansel and Gretal cakes and candy. Providing comfort is not always a sure sign the host is a good host. They may be fattening the public for the stew pot.

Charley said:

It reminds me of the Dot Com bust 6 years ago.

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Trust me, this is far more serious, and most of the things the Fed is currently doing will only make matters worse. However, this is NOT an Internet Confidence Crisis, so don't expect a re-run of the dot Com crash. The economy is gradually restructuring to take advantage of the online environment. The current crisis is only likely to accelerate that process.

Didn't creditcrunch.com just sell for $20K last week?

goodkarmaco said:

accentnepal,

all good points except the comment that the Bearn Stearns bailout is nothing compared to the great depression.

It is the same.

Economists have stated if the Bearn Stearns bailout was publicly known, (not dealt with behind closed doors with the U.S. offerring the bailout) all hell would have broke loose in the money markets. That intstitution going BANKRUPT would have definetly caused the stock market to crash just like it did in 1929. They knew that (Bernenke) and to save their asses (the U.S. dollar) the bailout happended.

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If the fed had allowed Bear to fall then other companies could also have failed as a result, and still others fail because of those. I have no idea how far it would have gone, a 1929 - level collapse is not impossible, or even worse.

But it did not happen, that is what I was saying, and it probably will not because Wall Street knows the printing presses are ready to "paper over" the problems.

goodkarmaco said:

My point is we have a economy not based in reality anymore. Its print money to solve all the problems coming up because the current government turned our greenback into worthless wallpaper. Now they are papering Wall St with it.

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I agree, except that it goes much further back than Bushie.

goodkarmaco said:

True markets cannot be manipulated by the printing press without having a bad effect in the long run. The end result is going to be economic meltdowns that will impact every nation.

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No issue of paper money in history has ever held it's value. It is only a question of how quickly it loses it (inflation). I have bank notes from Germany of trillions of marks. Worth nothing. But inflation at the moment is pretty tame, despite the price of oil. There will be more inflation from the bailouts and other money-throwing activities, but we had 20% inflation in the late 1970's - we are a long way from that. BTW, I would not be surprised to see a drop in oil prices, there are a lot of speculators in the market, time for a correction.

goodkarmaco said:

If domainers sell names at todays prices and we get really big inflation, (this can happen very quickly) the dollars earned will be worth less and less and a domainer may find his purchasing power has been lowered to a great extent.

How can such a large banking investment company go down so fast? The economy is on the verge of runaway inflation. Without the fed CONSTANTLY propping up failing markets we would now be up a creek witout a paddle.

What does their bailouts to the tune of hundreds of billions of dollars over and over again really say about the situation for our economy?

It says you are getting a little more time to get your house in order.

It won't be the three little pigs huffing and puffin at your home. It will be big changes for the world. It does not matter if government acts like the wicked witch and feeds Hansel and Gretal cakes and candy. Providing comfort is not always a sure sign the host is a good host. They may be fattening the public for the stew pot.

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"fattening the public for the stew pot" is a continuing process. A sensible parisite does not kill it's host.

But your entire economy has already nearly halved when measured in real money! It disappeared and you didn't even see it go.

Rubber Duck said:

But your entire economy has already nearly halved when measured in real money! It disappeared and you didn't even see it go.

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In terms of the Euro, yeah, more like a third, but agreed. There are more dollars owned outside the US than there are in it. (What ever happened to "Eurodollars" - foreign owned dollars that traded at a discount to ordinary dollars - haven't heard the term in years?) That is the advantage the Euro has over the dollar - there simply has not been the time to accumulate the debt that the dollar has.

RubberDuck said:

It disappeared and you didn't even see it go.

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You gotta admit these guys are clever.

We see all the time in the news that the Fed is raising and lowering interest rates.Yet nobody -- NOBODY -- asks who gets that 3% per year or whatever it is, paid by borrowers on money that is created from thin air.

The answer is that private bankers get that money. The Federal Reserve member banks are privately owned.

"The original stockholders of the Federal Reserve Banks in 1913 were the Rockefellers, JP Morgan, Rothschilds, Lazard Freres, Schoellkopf, Kuhn-Loeb, Warburgs, Lehman Brothers and Goldman Sachs."
from: http://www.usgoldcoins.com/information/articles/truth_about_money.html

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domainman101 said:

Didn't creditcrunch.com just sell for $20K last week?

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:great: I love this industry!

accentnepal said:

In terms of the Euro, yeah, more like a third, but agreed. There are more dollars owned outside the US than there are in it. (What ever happened to "Eurodollars" - foreign owned dollars that traded at a discount to ordinary dollars - haven't heard the term in years?) That is the advantage the Euro has over the dollar - there simply has not been the time to accumulate the debt that the dollar has.


You gotta admit these guys are clever.

We see all the time in the news that the Fed is raising and lowering interest rates.Yet nobody -- NOBODY -- asks who gets that 3% per year or whatever it is, paid by borrowers on money that is created from thin air.

The answer is that private bankers get that money. The Federal Reserve member banks are privately owned.

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It is not about time, it is about responsible management of the money supply.

The European Central Bank has been very conservative, and this will mean that the Euro continues to be strong, and Europe will attract massive inward investment now that the most of the World's Financial resources will not be attracted to fund consumer debt in an economy with low interest rates and a depreciating currency. The UK unfortunately has not been quite so prudent, but the Bank of England has been a lot more cautious than the Fed, whose action under Greenspan can only be described as totally wreckless. Why anyone is still asking that man's opinions just beggars belief!

Rubber Duck said:

The economy is gradually restructuring to take advantage of the online environment. The current crisis is only likely to accelerate that process.

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Do you see more million dollar domain sales or recession in that as well ?

Charley said:

Do you see more million dollar domain sales or recession in that as well ?

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Top domains are substantially undervalued. You will see more groundbreaking deals, and you will seem much greater geographic and cultural spread. You will start seeing such deals in keywords that you cannot even decipher.

However, there is a bubble and it will be increasingly recognised that beyond dot Com, ccTLDs, and to lesser extent dot net and perhaps dot info, that keywords in the proliferating new extensions, actually have little value. It will also be recognised that most the dot coms registered in recent years have little or no value.

Rubber Duck said:

Top domains are substantially undervalued. You will see more groundbreaking deals, and you will seem much greater geographic and cultural spread.

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I was checking on the exact meaning of RECESSION.


*A recession is a prolonged period of time when a nation's economy is slowing down, or contracting. Such a slow-down is characterized by a number of different trends, including:

People buying less stuff
Decrease in factory production
Growing unemployment
Slump in personal income
An unhealthy stock market

Without personal income increasing , it'd be a hold out situation for domain buyers, isn't it ?

Charley said:

I was checking on the exact meaning of RECESSION.


*A recession is a prolonged period of time when a nation's economy is slowing down, or contracting. Such a slow-down is characterized by a number of different trends, including:

People buying less stuff
Decrease in factory production
Growing unemployment
Slump in personal income
An unhealthy stock market

Without personal income increasing , it'd be a hold out situation for domain buyers, isn't it ?

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It will lead to a lot of portfolio downsizing.

Logically, they should be dumping a lot of the dross so they can tough things out. That is not the same as dumping your key assets. Good domains are going to be an excellent hedge against inflation and currency depreciation.

Rubber Duck said:

Good domains are going to be an excellent hedge against inflation and currency depreciation.

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Nice.

So then this will make existing buyers invest in top notch domain names.

Interesting seems like some good domains may actually rise in value and the rest will revert to the even more useless junk they are. Looks like an opportunity for smart domain name buyers to snap up some real gems if mild panic selling sets in and there is an over supply of half decent domains.

The bear then has to sleep and the bull eventually returns.

MaxMcool said:

Interesting seems like some good domains may actually rise in value and the rest will revert to the even more useless junk they are. Looks like an opportunity for smart domain name buyers to snap up some real gems if mild panic selling sets in and there is an over supply of half decent domains.

The bear then has to sleep and the bull eventually returns.

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I think hopes of a retrenchment in Top Generics is just dream city.

Rubber Duck said:

I think hopes of a retrenchment in Top Generics is just dream city.

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So do I, you would need a lot of money for that, and nobody will have any left after they have put the fuel in there cars to go to the shops and pay double for there groceries. Some people might think shopping online would be an easier more cost effective way for businesses and customers alike. This real trend should always create some demand for any half decent name suitable for using for an online business.

This thread is most interesting to me.

On a side note, I am thinking certain domains may be spotlighted for growth.

MaxMcool said:

Some people might think shopping online would be an easier more cost effective way for businesses and customers alike.

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That is much more expensive.

MaxMcool said:

So do I, you would need a lot of money for that, and nobody will have any left after they have put the fuel in there cars to go to the shops and pay double for there groceries. Some people might think shopping online would be an easier more cost effective way for businesses and customers alike. This real trend should always create some demand for any half decent name suitable for using for an online business.

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And there is plenty of scope. Believe it or not online sales in the US in TOTAL are no bigger than the UK, and we have only about a fifth of their population.

would high end domain fall more than low end?