United States Heading towards a Depression?

That's for certain!

 

It's a buyers market.

But in some areas like the New York metro sellers are unwilling to slash prices to any extent.

Prices have tripled around here and sellers are only willing to discount 10%

 

I like to buy on trends so for me this is no buying market.

 

New Yorkers always want too much for their stuff... Who sells an apartment? Come on... I've seen 1 bedroom flats that people are asking 1 million dollars for.. What a joke.. If it sold for a 1/4 of that it would still be over priced..

 

I bet $100 that you are a democrat. Be honest... am I right? If you lie about your political affiliation you will burn in hell. deal?

 

Oh, so he is a Democrat because he tells the truth about the U.S. economy?

I'm actually renting the house, but the monthly rent will be so cheap that I can save boat loads of money, while enjoying the benefits of having a home at the same time. I will continue to rent, invest in my business, and see just how bad the subprime crisis gets before deciding to buy.

 

yeah... Bush has done a "horrible" job.. lol.. yeah right. the proof is in da pictures

 

The proof is in the pictures? No, the proof is in the numbers. No one ever said "Bush has done a terrible job", but now that you've mentioned it, he has! He is the worst president in U.S. history. When he was made the CEO of Caterair in the 1990s, that flopped, because he doesn't have any leadership abilities, and now the economy is about to "flop" because he doesn't have any leadership abilities(and he gives his allegiance to skull and bones)

But in all fairness, it isn't all Bush's fault. The U.S. economy has been headed into the toilet long before he got into office. But calling someone a Democrat just because they point out problems in the economy are ridiculous.

Like I said, every time someone talks about how great the economy is here, I will go and paste all the articles from the last 8 months which say otherwise, which are based on numbers:

http://www.finance-wars.com/ReturnoftheRobberBarons.html
http://www.finance-wars.com/Incomeinequalityworstsince1920saccordingtoIRSdata.html
http://www.finance-wars.com/LivingPaychecktoPaycheckGetsHarder.html
http://www.finance-wars.com/CardDebta915BillionDisaster-in-Waiting.html
http://www.finance-wars.com/CrackingtheWhip.html

Read the links above and then compare them to your "graph" of the Dow Jones. If I were you, I'd stop getting my financial advice from the "Wall Street Guys." You can let them fool you with graphs if you want.

 

Its a knife catchers market, for people who get all excited by 20% off something that is 50% over priced

The buyers market will be in a year or two, thats when there will be the real deals, IMHO

once banks start auctioning off their foreclosures with no reserve

 

Why do you think rentals are going up? Tons of unsold investment houses are turning into rentals and blowing up the supply of rentals

 

\

Foreclosures is what will drive the market down. Many subprime buyers have no equity and it won't take much to push them into foreclosure.

 

Where are values over priced by 50%? I just checked Orange County California's average price increase over the last 15 years and it's up less than 7%. If anything the market is undervalued with it's location, jobs, scarcity of land, and demand for housing. There are a few neighborhoods that might have been affected by subprime but hundreds that were not.

Sell your 50% overvalued properties and move to a better neighborhood.

 

blah blah orange county blah blah, orange county will fall just like the rest California,

book mark this page and in year or two we will see who is right

shit man I got mutual funds that give way better return then that, once you factor in taxes, insurance, interest on the mortgage, It's hard to see why people buy houses

 

New York and New Jersey have had a 100% increase in the last 7 years.

According to the New York State Association of REALTORS the statewide average sales price for existing a single-family was $132,83 in the year 2000. The New Jersey Association of REALTORS reported that existing single-family sales for the year 2000 averaged $179,800.

The New Jersey Association of Realtors reported that median home prices for the first quarter of this year of 2007 are $361,300.

The New Jersey Association of Realtors reported that in July 2007 statewide median sales price for single family home was $252000.

 

Where I live went from an average of 171k in 98 to average of 740k! in 2006, whats that almost 400%

would have been cool to buy in 98, I think I was probably living out of car and traveling the country around then though

Do you think we will ever see a real estate run like this past one in our life times?

 

From 1970 thru 1985 prices were increasing 100% every 5 years but that was due to inflation.

The difference now is that home/condo prices are out of alignment with rent.

 

yeah there was just an article in the wsj about that, they where saying houses have to decrease like 4% every year for like the next 4 years with rents rising 3-4% in order to get back in line

 

We are NOT headed to a depression. We're headed to a more and more devalued currency, a depression would mean that the value of the dollar goes up.

The 1929 depression was the result of the FED cutting the money supply by 33% over a period of a few years, causing deflation then eventually economic collapse from not enough dollars in circulation. What we're headed to is a point where China, Japan and even England want their money and in order to pay them, the FRB will have to print more money.

Right now, we fund our overextended government by loans from other governments. If we can't get enough money from outside sources, the Federal Reserve Banks print more money then buy the Treasury Notes the government has for sale. This creates a greater supply of money. Right now, foreign countries are still buying our debt like its worth something. When they come to collect, the Federal Reserve will have to print more money to cover the deficit, meaning TRILLIONS more in US Currency.

Economics 101 will teach you that more money = less value per unit. With our current obligations, the federal reserve will have to print $50Trillion to cover our foreign debt and entitlement programs. Quite frankly, when that happens its game over. We fall into the same trap as 1920s Germany and the dollar goes to worthless.

We're not going to a depression, we're headed to stagflation.