United States Heading towards a Depression?

Will the rent on the second home cover the mortgage and taxes?

 

Well let's see I could panic and sell or I could wait for the temporary dip to pass. It's pretty easy not to be a speculator in real estate.

 

The majority of people have mist things ass backwards. Real Estate is NOT the only form of investing and it is a misconception that it is the safest form of investing. While some people have made fortunes the is many more that don't. Thats the problem when you dilute a market or a product, it looses its value. Same with the RE market, everybody tried to become a RE investor of flipper so now we have a shit load of inventory (over prices I might add) an not enough buyers. People need to start looking of their homes NOT as an investment but as just a place to live, that should not cost 30years of their lives to pay off or 50% of their income. In my opinion at the current state I would not even touch real estate as an investment opportunity, way too many properties, not enough buyers, and if you look ahead at our bankrupt economy good luck finding buyers into the near future. Its done folks! It's toast. Move on ti something else.

 

Bernanke is saying that the Fed is ready to lower rates to 3.75%

More trouble for the dollar is on the way. The European rate is 4%.

Bernanke is talking to much about inflation. But even the inflation rate that the Fed states is ready to surpass the Fed rate.

http://biz.yahoo.com/ap/080110/wall_street.html

 

The US Dollar has lost half its value since the turn of the 21st century.

 

It seems that the FED is going to inflate the economy to keep the housing bubble for deflating which will mean more pain later on.

 

its funny, my friend is dating one of the eastern European girls who come here to work for a couple years, and she is saying it won't be worth it for them to come here if it falls much further

I just read an article that said the Brazil is doing so much better then us in terms of growth recently, that Brazilians are leaving the US to go back

Florida has lost so much tax revenue this year or so, its going to be interesting to see what local governments do

 

Your bankers, the Arabs, the Chinese, and the Japanese won't keep lending you money forever while the FED keeps on printing.

The lending will stop sooner rather than later.

The currency and debt is backed by nothing except a mortgage on Americans futures.

If you take the real government debt and divide by the number of households, it comes to $400,000 per household. Who's going to keep lending money for much longer with this amount of debt?

No one.

 

Real is real strong. The export economy in Brazil is starting to hurt. I actually got a job for $8000 from a Brazilian company last year.

 

He's doing that to bolster the market, but I don't think people are buying it anymore. Just the guys playing extremely short, not long.

Nice little cabal these guys have though. I bet we'll see the Europeans follow his move.

Bernanke's entire philosophy is based on creating liquidity to bail out the economy. He's an uber-Keynesian.

Shhhh. The people wearing blinders might hear you.

We're past the pain horizon, we're looking at a massive collapse. Sooner or later, people have to clue in, that the bad credit has to be purged, you can't keep moving it because it will grow.

 

I hate to say it, but a collapse is on its way, like nothing we have ever seen before.

 

Isn't it actually about $33,000 per house hold? We need to get a handle on earmarks and social spending.. That is what is killing us...

 

Than since you seem to know where the problem is why don't you support the only candidate that has the solution to the problem? Ron Paul.

 

Earmarks are only around $50 billion a year. Our future entitlement obligations over the next 20 years happen to be $57 Trillion.

We're broke. Tweaking earmarks is like hunting fleas when you want to feed a family of four.

Btw, you can't cancel those entitlements. They are obligations that have been paid into. The money has been squandered, which as I keep posting, all of you guys who hang out on the Treasury site, and not on the GAO site have no idea about.

 

Gold is nearing $900 today. Thats a good sign of where we are heading.

 

50 Billion is a lot of money and worth going after.

Future entitlement obligations are another issue. We need to get through the next five years before we worry about tomorrow.

If it gets that bad, I'll just go back to Mexico.

 

No, it isn't. Not in the scheme of things. Earmarks may be wasteful, but not all are. It's tax money that is returned to public works, and not appropriated by the executive.

I swear, earmarks have been invented as this stupid little distraction for fiscal conservatives to get all hot and bothered over. It's so frustrating.

That attitude is exactly why we are in this mess. Worry about tomorrow, tomorrow.

And because we have lost all of the compound interest on SS and MM funds at treasury rates, we have almost no chance to recover without undergoing a complete collapse.

Won't make any difference. If the US goes in the tank, Canada and Mexico won't be far behind. Both countries count the US as their major trading partner.

I've been looking at Iceland myself.

 

How about the Outer Hebrides?

 

No.

Not according to the Comptroller General of the United States who is the director of the Government Accountability Office.

http://www.gao.gov/cghome/dwbiog.html

He says the US Government Debt is an implicit mortgage of $175,000 for each American and more than $400,000 for each American household.

He's basically the auditor of the US government and you can see him state all these things explicitly in this video here:

http://www.youtube.com/watch?v=I-16u9x3tfE

I for one do not want to see the decline of America and I hope Americans have the courage to see the situation for what it is.

 

Gold futures were up to almost $1,000 for June '08.