SHTFplan Editor’s Note: For the last four years we’ve heard about how great the real estate market is. Speak to a real estate agent and they’ll tell you that this is the perfect time to buy. They echo the same selling points as they did back in the early to mid-2000’s. Prices can only go up from here! But a closer look at the actual data reveals a starkly different environment. In the following article by Brian Pretti, made available for our readers from the top-notch research team at Peak Prosperity, you’ll see that we are about to hit the next wave of the real estate crisis. And this time it may be a whole heck of a lot worse than before. Coupled with reports of negative growth in our economy over the course of the last six months this is yet more proof that we are nowhere near a recovery in the United States.
The US Housing Market’s Darkening Data
By Brian Petti
When looking at residential real estate, we often tend to focus almost solely on recent price movements in assessing the health of the housing market at any point in time. But as both homeowners and income-earners in the larger economy, of which the housing market is an important component, to really understand what’s going on, we need clarity into the larger cycle driving those price movements.
The more we look at today’s data, the more it looks like that we are in a new type of pricing cycle — one that homeowners and housing investors have no prior experience with.
And the more we learn about the fundamentals underlying the current cycle, the harder it becomes to justify today’s home prices on any sustained level. Meaning a downward reversion in home values is very probable in the coming years.
Housing construction has been meaningfully additive to overall US GDP in virtually every economic expansion cycle on record. Moreover, sales of home furnishings, appliances, landscaping and gardening equipment, etc. have contributed to expansion in consumer spending, the largest singular component of US GDP. And maybe most importantly, residential real estate investment has been a key wealth-generation asset for the middle and lower classes for decades.
Residential housing has typically been purchased with leverage that has been paid down over time accompanied by a commensurate increase in household equity as homeowner’s age and mortgages are paid off. Particularly for the middle and lower classes, residential real estate investment has been the single largest contributor to net worth expansion of any household investment asset class.
With the clarity of hindsight, we know that the prior 2006-2009 period witnessed the most serious downturn in residential real estate prices in a generation. Few saw it coming as it was an event never experienced in their lifetimes. One would have to travel back to the 1930’s Depression period to find a similar occurrence. There is an old saying in the markets — People don’t repeat the mistakes of their parents, they repeat the mistakes of their grandparents — and this was certainly true in residential real estate markets in the middle of the prior decade, as the buildup of excess and often reckless leverage was ultimately the key provocateur leading to price declines, as was the case in the 1930’s.
Accompanying the current economic expansion that began in June of 2009, residential real estate prices have recovered. In fact, in high-ticket geographic areas such as many parts of the San Francisco Bay Area, New York, etc, current prices have well exceeded the prior cycle peaks of 2006.
Indeed, the following chart (using data from the US Census Bureau) shows us that the median price of a single family home in the US has now recovered to a level just above the prior cycle peak:
Remember, this incorporates meaningful and often anomalistic sales activity in very high priced areas such as New York and San Francisco, clearly skewing the median numbers higher.
In one sense, the recovery in price is at least graphically pleasing and simplistically suggests a return to longer term normalcy, or trend, in the overall residential real estate market. But as we look a bit deeper beyond just price into the important components of housing activity as they relate to the real economy (GDP) and household balance sheets, we see something very different: as the prior cycle downturn was a once-in-a-generation event, so, too, is the character of the current housing recovery. The anomaly of the current recovery has implications for both the real economy and investment activity ahead.
In headline fashion, the contribution of housing to US economic growth is found in new home sales and housing starts. Demand for new homes drives demand for building materials and construction work, both important in prior cycles in driving job growth, the bedrock foundation for consumer spending. Again, if one only looked at residential real estate price trends, one would assume a very normal recovery.
But the data below show us that actual new home sales and housing starts currently rest very near half-century lows. How can this be? What we see at present with new home sales and construction starts is what we saw at the depths of every US recession of the last 50 years. These data points suggest that the current is anything but a normal housing recovery.
Here are the numbers are current through April of this year:
(Source: US Census Bureau)
Accompanying the dearth of new home sales and starts is the fact that the number of new mortgage purchase applications currently rests near the lows seen since 2009. Just how can prices be ascending so spectacularly when new home sales are in prior recession territory, new housing starts have not recovered, and the number of new mortgage purchase applications has not climbed from the depths seen in 2009-2010?
Accompanying these trends is the fact that the US homeownership rate post the peak seen in 2004 has fallen to a near 19-year low. The message is that although total household formation has marched forward, households are increasingly choosing to rent their primary residence as opposed to own residential real estate. Of course, this is the reason that median rents in the US, seen in the bottom clip of the next chart, have incrementally marched to new all-time highs:
(Source: US Census Bureau)
The key macro conclusion of the current cycle is that we are not witnessing a “normal” residential real estate recovery at all, but rather an investment cycle driven by actions of central bankers (think the Fed), global flows of capital, and a new entrant to the residential real estate market from the institutional investor side.
In Part 2: Get Ready For Falling Home Prices we identify the new primary drivers of home values in this unfamiliar pricing cycle and examine their implications for the broader economy, and household consumers specifically, as we look ahead.
Long story short: price reversion is coming. If you own housing as either a residence or an investment, don’t let yourself be caught as vulnerable as you were in 2008.
Click here to access Part 2 of this report (free executive summary, enrollment required for full access)
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I guess the rental market will be good.
Housing prices down? You must be kidding. Will all those people whose house valuation; on their taxes that went down; please give me a down; and those that went up, give me an up. See? The Tax people wouldn’t lie would they?
So, are people now going to get even more “upside down” on their “upside down” mortgage?
Is that like multiplying two negatives? Does it make it a positive?
Ahhhh, the magic of government mathematics… 😉
Pretty soon, our dollars will be worth more than PMs.
I’m not sure, I think they roll over and come back right side up? Or maybe they just drowned
Like the island the Senator referenced…..they will tip over from the weight. Ha ha
An Air-Stream trailer pulled behind
my pickup truck is making more sense
to me everyday.
My bugout location would be wherever
I wanted to park it for that day.
from the financial news…
NIRP Has Arrived: Europe Officially Enters The “Monetary Twilight Zone”
“Goodbye ZIRP, hello NIRP. Today’s decision by the ECB to officially lower the deposit facility rate to negative (as in you pay the bank to hold your deposits)…”
“the ECB is now contemplating something far more drastic: CHARGING DEPOSITERS for the privilege of holding money. Enter NIRP, aka Negative Interest Rate Policy.”
Zerohedge
Direct link…
http://www.zerohedge.com/news/2014-06-05/nirp-has-arrived-europe-officially-enters-monetary-twilight-zone
Renminbi becoming currency of choice in USA. Financial times blog. Link on drudge. Couple with the NIRP, I see a collapse coming.
I suspect that is going to be many people’s backup plan. In my area, I have seen ads for old RV’s, someone wanting to restore them. I can so see the future where desert areas are dotted with rented out RVs or tents, rent paid for with labor. Those with good imagination should be plotting future money making enterprises. Stockpiling cisterns, water hauling trucks, small solar systems, porta-potties, making massive piles of compost out of animal poop. There are a lot of horses in Bend, Oregon and almost always ads on craigslist for free horse manure. That is a free treasure for future use. How many take advantage of the woodcutting permits for firewood? I believe they are about $8.00 per cord in our area. Are you getting the max allowed per year? If you don’t use all of last year’s wood, so what. Continue to cut your max allowable for this year. Stockpile it like your life depended on it. You can start worm beds, continually add to your bone-yard of recycled metal roofing, routinely check out the bargain section of Home Depo and Lowes. We find many usable pieces of lumber, imperfect but quite usable for small out-buildings. We have found lots of gallons of the Oops paint, gone from free sometimes up to now $9.00 per gallon. Quite a bargain. Have found disinfectant at Home Depo for one penny for a gallon, close out item but we were lucky to be there at the right time. Don’t use the same mind thought that we did for so many years. If you see a free item somewhere? Study on the different possibilities of how that could be used by you or someone you know. Brain storm with others on recycling. It can be very stimulating and its free entertainment.
House dropped 30 grand 3 years ago..overnight. Still hasn’t gotten back anywhere near that. Our taxes dropped 30%…and still haven’t gone back up.
The actual market value of my house dropped over 30% a few years ago, but the property taxes keep going up! My tax evaluation is at least 30% over market value of the house, and the town won’t do a damn thing about it.
My tax valuation went down for three years running, even with a new stick-built shop matching the house.
Realtor says I made money.
Go figure.
None of it matters. I need a place to live, I already own this one, who cares what number is attached to it?
Rents have gone up here, house payments have not.
Paranoid: Actually the tax data in Arizona shows the property value declines with lower property taxes year after year after year, for all of the properties that I have looked at; which are many.
However, since tax assessment market values are only determined once per year, it is likely that the value of a particular property has continued to decline post tax assessed value. So a property could have declined 10,15,or 20 percent but that decline would not show for an entire year.
The demographics for housing are over folks. I mentioned that here some time ago. But don’t worry, pregnant ILLEGALS rushing the border will stimulate the economy with additional government spending for food, housing, and medical care to expand OUR GDP!
And OUR future is assured because one little 6 year old girl from Central America accompanying her illiterate mother wants to come to America to be a doctor!!!
Wish I had known what I wanted to be when I grew up, at six years old. It would have made life so much easier!!! 🙂
Significant portion of what home sales there are is big corps buying up homes to rent. So says a friend in the R.E. business in Michigan.
you ever get the feeling we are returning to fiefdom = peasants who don’t own any land and then one asshole who believes he owns it all?
Coach: Black Rock, Colony (Buffet) and other vulture funds bought tens of thousands of foreclosures from Freddie and Fannie at Crony Capital prices and are now renting them out.
Meanwhile LSM is singing the virtues of renting so that Americans will rent these homes from the PTB who own them. They aren’t buying any more.
Anyone else is late to the party unless they wait another six months. Arizona is FILLED with multi-million dollar homes from Flagstaff to the Tucson Foothills that have languished on the market since the last crash and they are going nowhere!
McMansions will soon be two for one with a coupon! 🙂
That’s exactly what I was talking about D.K.
You would get a sorrowful laugh out of the crap that the real estate trade organizations are feeding their brokers and agents. My friend forwards some of the emails. The sorriest part of that is that she says over half the agents she knows believe it all.
Get Ready Folks, This Housing industry is setting us up again for the biggest rip off housing bubble ever. Bigger than before… Banksters’ are sitting on a pile of Foreclosures, decreasing available inventory waiting for housing prices to rise and peak again. What is going to happen is once housing prices begin to peak, they will get back to high risk loans to dump their remaining foreclosures at peak values to anyone with a pulse, just like before. Duping stupid and gullible people once again, to get a house at high record prices. All this is, is a Casino Dealer reshuffling the housing cards again and dealing us all another bad hand. What we all need to do is when sub-prime loans hit the market very soon, is that we all need sell our existing properties on the upswing. No worry though, 2 years later you will be able to re-buy your same house back again at half price. We need to play their Scam, and beat the Casino house at their own card game. This is a pump and dump real estate market. Banks don’t want any houses, as all they want are debt slaves that keep getting foreclosed on every 7 yrs. Again they will take the houses back and clean you out of all your equity again and again. Know how to play their game. Sellout on a rising market. Banksters’ control the economy, even lie, cheat and steal so they win every time. Just be 2 steps ahead of them.
My wife left me and took the kids. Good thing I don’t own a dog.
Just got done watching A Man Called Peter again, bout to start up Lethal Weapon 3. I may be watching movies for a long while.
I wonder what a .40 hollow point does to a big screen…check back later, cuz that broad ain’t taking it!
I need dog.
“A man called Peter” is a really great flick. If what you say is true about your wife/kids, take it The Lord and He’ll get you through it.
I’ll be praying for you!
@Educated Sinner:
Thank you fellow King! And to the King of Kings!
@ Iowa
I’ve been divorced three times, but am happily married now. Unlike some politician who is full of shit and running for office, I genuinely “feel your pain”. Hang in there; the One True GOD who created us all will always be on your side, if the people in your life tuck tail and run
sonofsam, everybody knows the first 3 marraiges are just for PRACTICE! the first divorce, i lost everything i had(maybe even MORE than that). after that one i was much more careful. PRENUP: an agreement between to people who love each other ALMOST as much as their STUFF….i been married 5 times now, and this one aint workin out so good either! who knew tampons weren’t an “acceptable” birfday present? and apparently it’s not ok to talk dirty to your mother-in-law over the phone. aw well, like they say, ” sixth time’s a charm”…keep tryin’ ’til yuh git ti right! hee hee heeeeee he hee!!!
@Buttcrackofdoom:
It may sound stupid, but you made me feel better…
I only did one tour! LOL, thanks!
actually, I tip my hat to anybody…..NO……EVERYBODY, that only does the one tour! good for you….you both deserve each other. good luck to you both!!
@SonOfSam:
Thanks. I know the Lord will never leave me. 🙂
My first wife left, too…many decades ago.
She said she liked guys with PHDs and I didn’t have one.
PHD = Pretty Huge Dick…
Hang in there Iowa and, sure, get a dog…they will love you no matter what…a woman, not so much.
How does that saying go? Lock both your wife and your dog in the trunk of your car for an hour. When you finally open it, which one will be happy to see you? That’s when true love hits you in the face.
do you know why divorce is so expensive?
Because ITS WORTH IT!
BTW happily married …fer now..lol
Marriage is grand but divorce is 50 grand.
Confederate: In the West, it’s 50% ! 🙁
Its cheaper to keep her
I think I’m gonna just hide the tv at a friend’s place instead.
To Lethal Weapon 4 and beyond!
Ann B. Davis, who was the maid on “The Brady Bunch,” was in “A Man Called Peter” in an uncredited part.
Mine left and took the dogs, (for some dude on facebook) Thank goodness we had no kids.
Sorry.
Sincerely sorry about your current situation. Don’t let her keep you from the kids and don’t bad mouth her in front of them. Keep your head held high and your honor intact…that’s still your choice.
Trust me…far down the road, if you get the hankering and and if you do the math…there’s a boatload of pretty decent women and some of them are serious knockouts for every good man.
Wives can be replaced easiloy enough. But the 64 thousand dollar question is, “Did she take the preps or your ammo?” 🙁
Probably so for tents.
It’s been fun while it lasted!
In addition to home owners and investors, how many real estate agents are going to get wiped out by this? I suppose they and the lenders have it coming for pumping these prices on false information for so many years.
This world could use less rabid ferrets in Mercedes. Through all of this since 05 you’d a thought your local real estate “professional” would of tried to do something to motivate sales, LIKE reducing their take from 6% downwards. But OH no not that, gotta make that lease payment on the Mercedes. I just love it when a property is on the market and my “real estate professional” representing me, comes back with a offer from some other cheesedick $30K under, and actually leans on me to take it! Stating it will be a quick sale. Ok, fine cut 2points out of your commission and it’s a go being as you didn’t to work on it to much, being it will be a quick sale.
They could all vanish, it wouldn’t bother us in the least.
Real estate agents.
Lawyers.
Used car salesmen.
If it gets to the point to where property taxes are to high and one can’t afford to pay them, the question you have to ask yourself is “Am I willing to let the govt. steal my property usually for a several hundred dollars or am I willing to pay them in lead?” Eventually that’s gonna be whats happening. If taxes exceed your income and ability to live, then financial/tax tyranny rules.
hey slingshot, you forgot cops! they are FIRST on MY list for a reason.
cops
Real estate agents.
Lawyers.
Used car salesmen.
ok, before anyone calls me on it i guess we gotta add to the list.
people that sold the LOANS to buy the houses with
realestate appraisers
tax collectors
builders
building inspectors
anybody got any more additions?
Anyone who works for the National Association of Realtors. Their economists MUST be buried in ant hills. Helga the stupid broad that calls me to say there’s noting wrong but I should call about my credit NOW. and 1000 other telephone ad people.
Who would you put at the top of your list.
With no doubt in my mind.
A bad neighbor. The fucker is always there. You can get away from a cop or lawyer. Don’t have to go to a used car salesmen for a car. A dumbass neighbor can torture you for years
yup on the bad neighbor! been there, done that!
and yes to the telemarketers, especially google, they call me sometimes 10 times in one day! if I could ever get ahold of one of THEM sonsobiches alone, I think making him chew his tongue off with a mouth full of gasoline wouldn’t be TOOO harsh…no?….but for now,….I just say..”could you do me a favor?…… TAKE A BATH WITH YOUR TOASTER!!!”…..or you can tell them you just put a milkshake on layaway at McDonalds….in the laughter,…then moments of silence that follows, you can just hang up on ’em….but where’s the fun in THAT…..then when they call you back and hang up on YOU….it is great comfort to know you REALLY got to ’em!
If you had a poisonous snake, an evil dictator with a knife and a lawyer coming at you and you had a gun with only 2 bullets, what would you do?
Shoot the lawyer twice !!!!
All Lawyers are these days are Ambulance Chasers. Unless there is some big pie in the sky number they will make off your hardship, they could give a squat about your problem, and you are in the right and the law is on your side. Been there did that way too many times.
Add Bankers, loan officers and Insurance Salesmen to the list.
You are NOT a homeowner till you’ve paid off the final penny on your mort gage (translation = little death).
If you have an existing mortgage bust a gut to clear it. Do whatever it takes. Compound interest is a scary concept, and the plug WILL be pulled within the next few years. It’ll finish off the crushing of the middle-classes and reduce them to serfdom as the elite desire.
Do whatever it takes to clear as many debts as you can, as fast as you can. If you insist on retaining a credit card pay down that balance and then store the damn thing in the freezer. having to thaw it will check those impulse purchases and ensure it really is used just for emergencies.
Multi-generational living was the norm and worked for generations, if you are young then stay put with your Mum rather than sell your soul to the banksters at this time. Just ensure that you are a net contributor to the household rather than a leech – be an adult! There are many advantages to multi-generational living if you embrace it before you are forced into it.
It makes homeschooling the kids easier as the teaching/childcare load can be spread amongst several adults. Granny may not be able to take a pick axe to break up road stones, but she’s likely to be able to impart a better grounding in arithmetic than the common core public school will.
Bills & chores can be shared too, making working all those unpaid overtime hours less exhausting. Best of all when shtf – all your loved ones will be gathered in place.
Here in the UK any fool can see that a pump and dump operation is being planned upon people foolish enough to borrow London property values. IF you are fortunate enough to have disposable income then invest it in something sensible until you have enough for a modest property free and clear, someplace that doesn’t appeal to the city trendies, and that has accessible natural resources.
Those who insist that they will run up debt as they presume that when shtf they will be absolved of their debts are living in a fools paradise. They will find their bodies and property are OWNED by the banks in the same way their indentured ancestors were, worse still they will find their unborn babies are also chained by the same debts too. Anyone who assumes otherwise really hasn’t been watching the bankster’s all that closely.
This really is a no brainer. People’s incomes are not rising, if anything they are declining and way more people are out of work than the MSM and government would ever admit to. Banksters are not going to risk anything on people that are bad risks because the homes are going to NOT be valued enough to make some serious profit from foreclosures. This all adds up to home prices staying at the same level or more likely going down.
The dollar is very weak and this will start to show as inflation on food prices hit. And believe me, food prices WILL continue to go up just from a climate’s point of view. California drought for one thing. This is taken into account with a family’s income, just how much is going out for OTHER expenses. The higher food prices go up and other neccesities, the lower home prices go down. The manure truck that is the economy will begin to stink, might take a little while, but the flies are gathering.
funny, prices in high desert california are only back to 2003 levels…which is basicly HALF of peak price. actually, the bubble popped july 30, 2005….that was the last day you could put in your offer, close in 30 days, and move into your new house and get kids in the new school before the new school year starts after labor day. i remember selling MY house about 8 months later, all the while my agents telling me every month” prices are up 1.2%” over the month before. everyone could see prices were dropping slightly, but the NAR was reporting the “MEDIAN PRICES” of homes. the only houses that were selling were the more expensive ones, so it drove the median PRICE up…even though all homes were DOWN in price….one of the tricks they use to trick you into buying an “expensive” home. so it strikes me as odd that pretty much EVERYONE talks about the bubble popped in 06 or 07, or even 08, when it was really over july 30 2005….and you could almost make a case that it was over a full YEAR before that. if sales VOLUME is down, they will tell you PRICES are UP….if PRICES are DOWN, they will tell you VOLUME is up….they get to cherry-pick which info to highlite to put them in the best light. we are going back to 1980 prices BECAUSE we make less money, (inflation adjusted), than we did in 2000, which was the last year of “normal” house pricing. just remember, when less LOWPRICED homes sell, even though all the homes are priced EXACTLY the same, it drives UP the median price. when less highpriced homes sell, it drives DOWN the median price….even though none of the actual home prices have changed! you are just changing the MEDIAN price…hope that’s not to confusing.
We sold our VA house in 3 weeks, in late summer 2005. Best thing we ever did! Bought this place the year before, so we had a place to come to. Was so glad we sold when we did, got enough to pay for this place…prices in that area plummeted later on to 1/2 what they were, and still haven’t recovered much, 9 years later….I’m so glad we are outta there!
I was turned down for a mortgage WITH A CO-SIGNER IN A GOOD ECONOMY BACK IN 1997. All of my life it was either I rent something or become homeless and still is to this day. Been looking at some tax auctions for property in Middle and East TN but no luck so far. I still have my PLAN B to go to GA whenever the time is right. It’s only a matter of time before this house of cards comes crashing down and it ain’t gonna be nice when it happens.
247wallst.com/special-report/2014/05/23/seven-states-running-out-of-water/2/
Texas–Oklahoma–Arizona–Kansas–New Mexico–Nevada–California
There is NO water in Arizona. Don’t come here! 🙂
Any gain in the stock market, housing prices, and many commodities is due to one thing and one thing only: FIAT MONEY PRINTING. Many block buster movies, many books from fiction writers, and multiple Christian writers are all saying the same thing in some form whether sublimely or overtly: change is coming soon and it is going to get ugly worldwide. God, Ground, Grub, Guns, Gold and that is it kidos. PRAY, PLAN, PREP, FORM TEAMS.
Hey! I know that house, it’s in Missourah. Trekker Out.
this is the most important piece you will EVER read on house pricing http://patrick.net/housing/crash1.html
i wish everyone in america had to read this before graduating from high school. it should be required reading, like learning how to find an address, or how to balance a checkbook. it only takes an hour or two to read all three or four pages including following links to some of the metrics used on why payments are what they are for whatever area you live in. this page is several years old, but as appropriate as EVER!
Good read. A person could buy in the current climate; just make sure you’re buying below tax valuation, below local market values, and request an independent estimate of the property and make sure you are paying much less than that. Buy low in a high area. And finance such that you don’t have to put down much (<10%); owner finance might be a good option.
Yes indeed…
All the signs have been posted for us,yet for some reason or other..since 08/09..everything ‘appears’ status quo..
All is quiet on the western and eastern fronts..DC is operating smoothly and scandal free..car sales are up,stock market is up, so all is good!
Guess it’s time to watch Ozzie and Harriet…
and enjoy life.
possee
Amerika is the “New East Germany/ China/ North Korea”.
You will all learn in time to live in fear of your own children and your Zionist fascist UN Agenda 21 Globalist loving brainwashed family, church and neighbors.
There is no escape now from the globalist tax slave farm once known as America.
Fear is your new shadow, following you everywhere you go now…
“As every day passes I grow ever more determined, resolved to fight with tooth and nail to the bloody end for my individual right to Live Free of soft oppressive Zionist fascist tax slave tyranny.”
In my neck of the woods there are new houses from a decade ago that have never been occupied. Whole developments left to rot…
I see this as being very simple…
In this modern world, if you don’t have a robust and growing manufacturing base your economy can not survive…
It may take decades to finally crumble… but it will.
And that is precisely what we are witnessing.
And where is the downside. If real estate prices decline those who are out of debt wont be effected. Those who bought on credit haven lost anything. When you purchase on credit it isn’t yours. Until you make the very last payment your nothing but a glorified renter.
As long as you pay property taxes you don’t really own it. as local government staggers along they will raise those taxes,impose new ones to stay alive. Luckily my house is paid for and I’m not going anywhere so I’ll be spared losing equity. I’ll die here and can’t take it with me so I don’t care if I lose equity at this point. I wish the value of cars would go down too!
Our city complains about revenue loss and not enough firefighters, police, and a city pension problem but they found enough money in some other money pot, plus will raise property taxes, to fund stupid projects like a DOG PARK!
Highest home foreclosures in the state with a major rise in food bank shortages and they want a DOG PARK. The dog park will raise property values, right?
Exactly, this is the kind of stupid shit that drives me insane. A ducking fog park….sheesh! With all of the sensible things to prioritize, these local governments do shit like this all over the country every day.
In addition to Hussein Obama recognizing the Hamas/Fatah palestinian unity, now Kerry is cozying up to hezbollah in Beirut.
What property taxes, you’re a glorified renter even if you own the house outright. That’s why I had to sell my house, property taxes made it prohibitively expensive. A total crime and there is nothing I could do about it, even after countless appraisals that were clearly less than the govt claimed the house to be. Still sickens me to this day.
I never understood the practice of using your house as a personal “bank” such as with a HELOC. I consider a house as a “homestead” to use as shelter and not a store of wealth. That is a line parroted by RE agents and banks to increase their usury profits and your debt.
I hate being in debt or leveraged as some say. My Mcnugget house was paid for in 5 years and then I built a workshop with more sq. footage than the house.
The best thing people should do is not think of a house as wealth but as shelter to raise your family and grow your food.
Property taxes need repealed and sales taxes used to fund schools to get out from under the boot of local commissioners and school boards. I’m tired of paying for outlandish pensions for “public servants” who retire and double dip the system while the rest of the private workforce gets their pensions scrapped. If I got to take that hit .gov should, too.
GENIUS!
JRS: “The best thing people should do is not think of a house as wealth but as shelter to raise your family and grow your food.”
It took me 7 years to realize that
One thing I’ve learned over the years is that municipal governments are always run by 1.)real estate speculators, and 2.)city service contractors. This was true even 50 years ago. Yes, I’m that old. I grew up in a town that had town meeting government. My Dad was the unpaid water commissioner. As the `1950/60 wave of suburbanization washed over us, the newbies voted to became a “city manager/town council” type of government, which was more familiar to the urbanites moving in, and the rot really started. Dad hung on until 1973, but finally he sold the farm and, as we would say today, “bugged out”. He had lived on that place all his life, too.
The grassroots populations must rise up and take over at the town and county level before anything can get right. Throw the speculators out. They are only in it for the money.
The article embraces the myth that rising housing prices are a good thing or good for the economy. What’s good for the seller isn’t good for the buyer. For decades, housing prices were relatively stable in most of the country. What caused the housing bubble was interest rates at artificially low rates and banks lending to anyone with a pulse and requiring minimal down payments.
The market is kept propped up by the megabanks keeping foreclosed property off the market in exchange for borrowing money from the Fed at 0% and buying treasury bonds with that money.
I hear all the time that being a landlord is a great way to make money. You would be better off just throwing what you have in a pile in the front yard and burning it. At least you would not have to deal with all the headaches that come from being a landlord. You think they are going to pay their rent on time if they can’t afford to buy food? I don’t think so and add all the repair costs in when they are evicted it is not worth the time.
Home prices are rising here in SW Florida. Many if not most of the sales are cash. This tells me those with money are bottom feeding picking up homes for half the cost to build them by getting their money out of investments no doubt suspecting a significant market drop.
There is a smattering of new construction of modest priced homes as property values are cheap. Lots of Germans live here. I guess they still have money.
We lived in a suburb of Orlando for 10 years awhile back, I think half of Brazil and Puerto Rico moved there. Before that we were in the Ft. Lauderdale area also known as ” Little Jew York”!
Educated Sinner
What is very interesting is that Florida is home to a lot of people that came from areas that are traditionally hostile to civilian firearms ownership and carrying. Its been my observation that many “convert” to being “pro gun” once here. Even in the more metro areas support for guns is relatively high and virtually absolute in the rural “cracker” areas.
Maybe sunshine opens eyes?
blackrock(i think it was) on CNBC the other day talking ’bout the hundreds of thousands of homes they have bought across america the last couple years…(now the biggest owner of singlefamily homes in america)…..i got a feelin’ it aint gonna work out for them.
@ Keven2 – You must be referring to Cape Coral FL. Of course prices are rising now, they were well depressed during the last 8 yr crash. I remember 20 yrs ago you could buy all the lots on canals in the Cape you wanted for, for only $2K each. 10 Years later they were going for $25K to $40K. Of course I never bought any when I had the chance. Cause there were thousands of them for sale. I dumped my money into a bigger black hole called a power boat. lol
Your home is your castle. That is until property taxes rise to where you no longer can live in it….
The folks who were so happy about the deals they got on the foreclosures in my area just got their first tax bills. It was really interesting to hear the hammers of rehab literally screech to a halt in midair under the weight of full-tilt taxation with contrived increases…
It won’t be long before they tax the very air we breathe. Once the money train stops, they will come looking for anything to tax that they can get their grubby little hands on. This means anything that you own that has paper/documentation that it is yours. Watch those records folks.
Gonetoolong,
“It won’t be long before they tax the very air we breathe.”
That’s the EPA’s job!
Don’t worry, since China has a glut of our dollars, they will be further buying up the place on the cheap. Meanwhile you will see a rise in tent cities for americans, or better yet,the (new owners) will rent/sell it back to you – the one born here!
That’s that wealth redistribution you all were hearing about!
Are we learning yet?
this is what happens when it’s propped up. Extend and pretend comes to an end eventually.
@everyone…this is really off topic but I had to share this story from my hometown. “Two Eight Graders Hit Their Heads On Pole While Hanging Their Heads Out of School Bus Window” What made me laugh, you ask? The school these young geniuses attend is the Pittsburgh Obama School. Yes, in this liberal haven of Pittsburgh, council is beginning to rename our schools after the infiltrator named Obama has been seated in the Peoples House.
Check out the video. No, there is no pictures of the young (and nearly missing their heads) idiots, but you gotta see the picture of the woman our local news anchor interviewed. Her earrings and necklace alone could be thrown into the Great Atlantic and stop a Naval Carrier.
Don’t be ashamed of yourself if you laugh…oh the irony, the irony!
http://www.wpxi.com/news/news/local/pittsburgh-public-schools-2-students-hit-pole-inju/ngDzY/?ref=cbTopWidget
This is how totally F’ed the country is where the highest paid public employer for each state is most of the time a football or basketball coach.
http://rense.com/1.imagesH/EdMaP.jpg
While the country falls apart, people are still fixated on totally meaniningless sports. Also extremely important is the entertainment realm, like what miley siren or lady gulp gulp are doing and their new preverted musci videos. The zombies really get a kick out of when these slime stick their middle finger up to God.
Under $150K has not been affected much because the middle class are being forced downward so there are now more buyers than ever in this price range.
Over $1 million also not affected. The elite have more money than ever.
All other property values have been devastated. Except in big cities (NY, LA, Miami) where foreigners are buying up property at a fast clip. Oh, and of course in Washington DC, the black hole where almost all of our money ends up.
The only folks buying houses where we live are Muslims from Somalia. Somehow I get the feeling that they’re “Obama Homes” and we Taxpayers are footing the bill.
Although our place has lost it’s value since 2008, our Home Owners Insurance just doubled for this year! Screw MetLife, we’ve been with them for over 20 years, but I won’t renew with them ever again!
I had similar experience in 2006.
The insurance company sent an appraiser out to value the property at “replacement” cost. That’s more or less what they say it is. I told the appraiser for my previous ins. co. (when they revalued the policy in 2006)that I would sell them the house for less than half that appraisal. He wasn’t amused. The insurance co. went bankrupt in 2008. I was with them more than 20 years with one minor claim for $650.
When I replaced the insurance I valued the house at what I thought it was worth and went from there with the new agent. If your house is paid for you can do that. Just make sure that you cover at least 80% of the house value or if it burns down the insurance company will fuck you on the full recovery (at least in my state). Fine print ya know.
All insurance is a scam. Good luck.
Keep in Mind Home Insurance companies like to make sure the Land Value is insured in the total value. What they make you forget to mention is that, if the house burns to the ground the land still has value. There is no such thing as a total loss and they know it, and make you include the land value instead of just the house construction replacement value. My land value equals my house value, but I am charged for the entire value. Screwed again.
Most automobile insurance companies beat you black and blue to accept a “package” of homeowner’s (or renter’s) insurance along with your car insurance. This is because car insurance rates are regulated, but homeowners’ rates are not. So they rape you for the homeowner’s policy so as to guarantee themselves a fatter profit. Try switching your homeowner’s to another company, and see how fast they find a reason to drop your auto policy.
@ ES
Sounds like MN turkey country.
It doesn’t have to be an Obama house, but probably is. I have heard that a lot of the “immigrants” from the continent of Africa live with their wife and her “cousins.” And the “cousins” always seem to be pregnant. Hmmmmmm…..
I wonder, on top of the housing, how much THAT is costing the taxpayer as well?
Home and rental prices should reflect reality. The reality is the economy is nosediving for the majority outside the top 10 percent. Shelter prices need to be appropriate for a near third world existance. Housing and rental costs are way too high for income levels. A three bedroom concrete block house cost under 10 grand 50 years ago, now 200 grand. WTF! Income has been stagnant for decades. Talk about ruination of a country. Greedy capitalists have ruined America.
What ever the market will bear. For twenty years I heard this saying used to explain the euphoric rise in home prices, a rise so dramatic that it priced the future blue collar worker out of the market and crushed our economy when the bubble burst. Now that “What ever the market will bear” is putting downward pressure on home prices people act like it’s the end of the world.For there to be healthy home sales, home prices need to drop to the price point of what the market will bear. For there to be a higher average home price, real jobs need to return to this country. It’s not rocket science.
In my view:
Residential real estate prices do not just “decline” or “rise” on their own.
The real estate industry sets prices nationwide. The real estate industry makes market values “decline” or “rise.”
The real estate industry is a business of OPINION.
Realtors do not eat and pay their own bills if they do not sell. They sell at as high of a price as they can persuade a buyer to buy at, but they will bring down selling prices to the level that the available buyers CAN buy at, if necessary, to be able to sell and collect their commission so they can eat. Whether the homeowner/seller loses their shirt, or whether the buyer is overpaying, is irrelevant to many, if not most, realtors. And they are very well protected from “errors and omissions” by laws they have had written into the laws of every state.
In my opinion, homeowners and buyers would be better off if realtors served only as bonded/insured agents to show the property, and nothing else, for a flat fee — which could be in the hundreds, not thousands, of dollars — if the seller could not or did not want to show their property themselves. The price negotiation could be directly between the seller and the buyer, with no middle-man. The essential legal paperwork could continue to be handled by title companies and attorneys.
The commission-based realtor who wields SO MUCH power over the value of a privately-owned home, and whether or how it sells, is an entity whose time has passed.
Think about it…..the seller has no idea of what is really said to a buyer or to a buyer’s agent, and vice versa for the buyer. The involved realtors are fundamentally motivated to make a sale, regardless, so they can collect their commissions.
Why Americans continue to willingly hand over the value of their single most valuable asset to a person over whom they have very little control or oversight, and often times about whom they know very little, is beyond me.
Just sold a 3200sf brick home, 4-br. 3=bath, 5-acres landscaped, greenhouse, 40X60 pole barn with cement floors, electric & wel1 1- acre pond 30ft deep, stocked, beach, fire pit, geothermal system, foam block construction, radiant floor heat, gun vault/safe room. Wanted $459,000 sold for $429,000…..Glad it’s done, now onto the new property…I just hope rates stay super low for 30 more days to close construction loan…Today 3.47% fixed!!!
Your buyer wildly overpaid and you are a fool to enter into another mortgage.
Buy only what you can afford to own outright, with no debt.
Yeah, right. Go buy 5 acres and build what he sold for less than $500k.
Sounds like about a million dollar property up here.
Def a million in CT
In mid/northern N.H. can buy a decent 3 bed cape with garage/1&1/2 bath with 10 acres for about 70,000,have seen worse and better deals on a regular basis here and in Vt.You are a good shot away from bigger cities/towns,a good thing in my book.
For 70k it’s probably condemned.
I’m in the country and 429k sounds about right.
molon labe
Warchild;
I’ve been trying for the past two years to convince my wife to move to NH. She is slowly considering it, but I’m not holding my breath.
Here in Katy, Texas it is booming. Houses everywhere going up, subdivisions expanding new sections with streets and utility. However go further away from Houston and it is dead. I saw it in 1981- 1983 when all the builders pulled out. There were streets with just slabs and unfinished houses dotted around the area. So if it happened then it could happen now. Houston has diversified since then, so it is a pocket that shows last what many in the nation see first…….
Whatever ‘market’ people are referring to albeit Gold, Housing, or commodities, two words ALWAYS apply- GREED and SPECULATION. Neither word is healthy and they both are really one and the same.
I’m sure you have all heard of the term ‘Fix-n-Flip’. That’s what’s known now as a ‘speculation’ buyer. They buy up foreclosed homes, slap some paint on them and hope to sell them quick enough to move onto the next flip. Even a show on HGTV with a woman contractor who does just that. In places like…Detroit. Good luck with that. Guess the Chinese are buying them anyways.
Mortgage brokers and bankers got SO greedy they invented the real estate term, N.I.N.J.A. This means even if you had:
NO INCOME
NO JOB
NO ASSETS
It was all good, and they would hand you the keys to that home…knowing full well the majority of those would be foreclosed on again shortly. Of course predatory lending is the other term associated with that.
People who *think* they own their homes are in for a rude awakening as you also own the tax liability on it as well. Just like I mentioned the other day from a post by Manos in 2011, they RAISED the taxes to a level whereby people were using their life savings just to pay the taxes. Think that won’t happen to the U.S.?
Expect THIS to hit the U.S. as well…NEGATIVE interest rate banking.
ECB Cuts Deposit Rate To Negative For The First Time Ever
(from ZeroHedge site)
Congratulations Europe: you now get to pay your insolvent bank to keep your deposits for you. Today’s cuts summarized and largely as expected:
•Main Refinancing Rate cut by 10 bps to 0.15%
•Marginal lending facility cut by 35 bps to 0.40%
•Deposit facility rate cut by 10 bps to -0.10%. As in negative. As in deposits are now charged a fee.
And the ECB leave with the cryptic: “Further monetary policy measures to enhance the functioning of the monetary policy transmission mechanism will be communicated in a press release to be published at 3.30 p.m. CET today.”
Don’t know about the rest of the country, but where I am, they are building like crazy… Maybe because we never did rise up as fast as others, so we never fell as fast. But we have some sayings in Georgia, but they can apply most anywhere. Enjoy…
You know you’re a redneck when…
1. You take your dog for a walk and you both use the same tree.
2. You can entertain yourself for more than 15 minutes with a fly swatter.
3. Your boat has not left the driveway in 15 years.
4. You burn your yard rather than mow it.
5. You think “The Nutcracker” is something you do off the high dive.
6. The Salvation Army declines your furniture.
7. You offer to give someone the shirt off your back and they don’t want it.
8. You have the local taxidermist on speed dial.
9. You come back from the dump with more than you took.
10. You keep a can of Raid on the kitchen table.
11. Your wife can climb a tree faster than your cat.
12. Your grandmother has “ammo” on her Christmas list.
13. You keep flea and tick soap in the shower.
14. You’ve been involved in a custody fight over a hunting dog.
15. You go to the stock car races and don’t need a program.
16. You know how many bales of hay your car will hold.
17. You have a rag for a gas cap.
18. Your house doesn’t have curtains, but your truck does.
19. You wonder how service stations keep their restrooms so clean.
20. You can spit without opening your mouth.
21. You consider your license plate personalized because your father made it.
22. Your lifetime goal is to own a fireworks stand.
23. You have a complete set of salad bowls and they all say “Cool Whip” on the side.
24. The biggest city you’ve ever been to is Wal-Mart.
25. Your working TV sits on top of your non-working TV.
26. You’ve used your ironing board as a buffet table.
27. A tornado hits your neighborhood and does $100,000 worth of improvements.
28. You’ve used a toilet brush to scratch your back.
29. You missed your 5th grade graduation because you were on jury duty.
30. You think fast food is hitting a deer at 65.
31. You’ve ever taken a beer to a job interview
32. You’ve ever eaten Thanksgiving Dinner off a Ping-Pong table.
33. The funeral expenses for your Mother included Fireworks and a case of Wild Turkey Bourbon.
When you say “I’m going into town” and you go to Hahira, GA.
When we go into town we go in a town with one stop light and it was put there to slow down the passerby’s. The county where I hunt only has one stop light for the whole county and it’s always red when I get to it.
RIO: Life’s a bitch Rick. Whenever I go into LA Fitness the locker room is empty except for the two guys in the lockers on either side of me and the spa jets are not working.
Can’t catch a break! 🙁
Subject: Conundrums
The definition of the word conundrum is “something that is puzzling or confusing.”
Here are six conundrums of socialism in the United States of America:
1. America is capitalist and greedy – yet half of the population is subsidized.
2. Half of the population is subsidized – yet they think they are victims.
3. They think they are victims – yet their representatives run the government.
4. Their representatives run the government – yet the poor keep getting poorer.
5. The poor keep getting poorer – yet they have things that people in other countries only dream about.
6. They have things that people in other countries only dream about – yet they want America to be more like those other countries.
Think about it! That, my friends, pretty much sums up the USA in the 21st century.
Makes you wonder who is doing the math.
These three, short sentences tell you a lot about the direction of our current government and cultural environment:
1. We are advised to NOT judge ALL Muslims by the actions of a few lunatics, but we are encouraged to judge ALL gun owners by the actions of a few lunatics.
Funny how that works.
And here’s another one worth considering…
2. Seems we constantly hear about how Social Security is going to run out of money. How come we never hear about welfare or food stamps running out of money? What’s interesting is the first group “worked for” their money, but the second didn’t. Think about it…..
and last but not least,
3. Why are we cutting benefits for our veterans, no pay raises for our military and cutting our army to a level lower than before WWII, but we are not stopping the payments or benefits to illegal aliens.
Am I the only one missing something?
+1000 thumbs up Eppe. Great stuff as usual!
@eppe- You can add that locked up prisoners get medical care within 24 hours, when war veterans get care within 24 weeks.
I’m stealing this.
A friend of mine and I went out on the street last weekend here in the city. We got an old camcorder from Goodwill for $5, cleaned it up and I have a microphone from an old karaoke set an ex left behind.
We did the “Are You Smarter than a 5th Grader” scenario where we ask basic questions to people to gauge the “average” intelligence of everyday folks. In truth, the questions were below a 5th grade intellect.
Some of the questions:
How many planets are there in our Solar System?
Who was the first President of the United States?
What are the 3 states of matter?
Name a country whose name begins with the letter “U.”
One-third of 12 is?
As the day wore on, we had to seriously keep from bursting out laughing at the ridiculous, nowhere near correct answers we were getting.
How many planets? 17, if you don’t count Pluto.
Country that begins with “U?” Yugoslavia.
3 states of matter? Hot, cold…and warm.
Out of well over 100 people, only 3 people got all the questions right. People in suits, people in running gear, people in jean shorts and redneck t-shirts. White people, black people, Asians.
I take these results to solidify my view that America is hopelessly, hilariously and irrevocably finished. There will only be the elite haves and the utterly pathetic and pitiful have-nots.
And now, a quote from two humans:
“I am free, no matter what rules surround me. If I find them tolerable, I tolerate them; if I find them too obnoxious, I break them. I am free because I know that I alone am morally responsible for everything I do.” – Robert Heinlein
“The government I live under has been my enemy all my active life. When it has not been engaged in silencing me it has been engaged in robbing me. So far as I can recall I have never had any contact with it that was not an outrage on my dignity and an attack on my security.”
– H.L. Mencken
That Mencken was one observant liberty minded fella…
I like all of his quotes.
Swarm of earthquakes in Yellowstone Park
http://trib.com/news/state-and-regional/swarm-of-earthquakes-in-yellowstone-park/article_03358bb5-5238-5ecc-8b7d-50862b6892e8.html
swarm and earthquakes
usually two words you don’t want to see used together
(this article also rehashes the bison “fleeing” Yellowstone
IGNORE that,already debunked)
The European Central Bank (ECB) just lowered interest rates to -.10%. They will now charge customers for depositing money in the bank. What next? Are they trying to force people into the stock markets? So a crash will wipe everyone out? WTF?
Renminbi use surges in home of US dollar
http://peakoil.com/business/renminbi-use-surges-in-home-of-us-dollar
death of the dollar by a thousand cuts
the question is
what will the US do to stop this ???
and info coming out on the energy sector
is bad,bad BAD
Heinberg: IEA Says the Party’s Over
http://peakoil.com/consumption/heinberg-iea-says-the-partys-over
“The International Energy Agency has just released a new special report called “World Energy Investment Outlook” that should send policy makers screaming and running for the exits”
“Here’s a bit of context missing from the IEA report: the oil industry is actually cutting back on upstream investment. Why? Global oil prices—which, at the current $90 to $110 per barrel range, are at historically high levels—are nevertheless too low to justify tackling ever-more challenging geology. ”
translation-there is oil there for the taking
IF we can afford it
oil at $110 a barrel is not enough
oil at $150 would do the trick
until it didn’t
course gas might be at $5 a gallon
and that would finish off what is left of our sham economy
and as for shale ???
get ready for the bubble to burst
and serious trouble developing for oil sands also
2014: Peak Oil Sands Investment?
http://peakoil.com/business/2014-peak-oil-sands-investment
watch the energy sector CLOSELY
as energy goes
so goes the economy
There is another input into this. The higher the price of oil the more dollars it takes to buy a given amount of oil and hence a greater demand for US dollars. We loose as consumers in the US a bit but that US dollar just found a bigger hole to dilute itself into allowing Uncle Sam to spend more and getting the world to feel its inflationary effects.
Say what you want but the oil peg / petro dollar may not be ethical but the system was brilliant.
They want rising oil prices and increased world demand. Its just destabilizing to have it rise too swiftly. They don’t want world energy independence. They want have oil nations under our grip and oil have not manufacturing nations employing virtual slave labor using US dollars to buy oil. They want the developing world manufacturing base to increase so that there is greater and greater need for US dollars.
Unfortunately like any scam its days are numbered.
My lunch today is all foraged. Cattail sprouts and Maple seeds sautéed with butter and salt/pepper. Also I am deep frying Dandelion flowers. So freaking awesome.
Prep: only use the bottom 6 inches of the cattail peeling the spongy outer layers and slicing to your liking…Maple seeds( bigger means bitter) squeeze the seeds from the helicopters and mix with your cattail sprouts…sauté.
Flower Prep: just using the flower (the whole plant is edible) give it and egg wash, dip into a mixture of flour cinnamon and sugar and deep fry for a few seconds at 365 until golden brown cool and eat…careful VERY addictive.
who’s a well fed forager?….THIS GUY.
Queen Anne’s Lace is a common weed in my area. It’s related to carrots, and you can eat the roots. I have been driving around noticing where the Queen Anne’s Lace is growing in large quantities. Most people don’t know there’s food under all those flowers.
We have the cattails growing along ditches in our area. Our yard is full of dandelions, and maple trees grow wild everywhere. Another tip is that all maple trees have sap that can be boiled down to syrup, just not as good as sugar maples. So I’m going to let a few of the wild maple trees stay and grow larger.
If nobody else caught on, I could forage all over the place and eat pretty good.
If you go for the cattails check yourself for wood/dog ticks…they are bad this year, I found 3 on me but only one was getting attached…close one.
Raised by communists like Frank Marshall Davis.
Mentored by terrorists like Bill Ayers.
Tutored by mafioso politicians like Rahm Emanuel.
What could POSSIBLY go wrong?
The following precautions will help to protect you from the destructive acts of which sociopaths are capable.
To recognize them, keep the following guidelines in mind.
(1) They are habitual liars. They seem incapable of either knowing or telling the truth about anything.
(2) They are egotistical to the point of narcissism. They really believe they are set apart from the rest of humanity by some special grace.
(3) They scapegoat; they are incapable of either having the insight or willingness to accept responsibility for anything they do. Whatever the problem, it is always someone else’s fault.
(4) They are remorselessly vindictive when thwarted or exposed.
(5) Genuine religious, moral, or other values play no part in their lives. They have no empathy for others and are capable of violence. Under older psychological terminology, they fall into the category of psychopath or sociopath, but unlike the typical psychopath, their behavior is masked by a superficial social facade. ”
remind you of anyone?????
Look up in Wikipedia the word Machiavelli.
Basically the the term “dark triad” defines banksters, politicians (John Edwards former NC senator and presidential candidate is a prime example) to a tee. Also my ex wife, an anesthesiologist , in KY.
John Edwards never really was a senator. As soon as he got elected, he started running for president. He was really an ambulance-chasing lawyer.
Just got my county property tax appraisal, yesterday. Down another 10% from last year. Since we bought this place in 2004, value is down 65%. Lost 50% of 401K in 2008. If they keep this up, I won’t be able to eat. Of course, tax rates will go up because state and county have to replace lost tax revenues. They can’t take a cut. And now the ECB has gone to negative interest rates. That means if you have any money, they will charge you interest to park it in their bank. I’m sure US banks won’t be far behind. I wish we could start shooting bankers and politicos while I can still afford ammo.
OFF TOPIC
June 19th is ” June Teenth”. This is the date when the tyrant Abe Lincoln freed The Slaves.
Of late it has been a day where gangs of Black teens take out their rage on Whites.
On June 19th stay away from public beaches, parks, swimming pools, and any other places where large groups of these savages might be gathering.
Spread the word about this, please
I volunteer to let you use me for bait.
If you let threats affect your normal behavior, they’ve won.
If I ever meet you and accidentally shake your hand let me know, so I can wash mine. I go where I go because I wish to. I do not slither into the bushes to avoid evil. I stand and oppose it. Let evil fear me. Let the scum cower when I walk by. I chose not to. Yea tho I walk in the valley of death I shall fear no evil, because I carry extra ammo.
The Purchase of Our Republic
http://www.washingtonsblog.com/2014/06/purchase-republic.html
“The massive consolidation of wealth, combined with the removal of any limits on money in campaigns, has allowed for the purchase of our government.”
eye opening article for some
old news for many of us
the future is just not that bright
you won’t be needing shades
Chicago, north of the downtown area has been a scene of “wildings” recently. The Chicago papers dutifully keep it out of the press. This is a tourist shopping area. Groups of as large as 500 “urban teens” took part in the mayhem last year. The “Mag Mile”, as it’s called, is unsafe at anytime of year. If you go to a blog called “second city cop”, you can keep up on some of the crime in Chicago.
http://www.secondcitycop.blogspot.com/?m=1
is a must-read blog.
Depending on how you look at it. For some it will be bad (sellers) For some it will be good (buyers).
I guess it is just the way it is.
Aim Small Miss Small
Sgt.
I don’t pay any property taxes on my home. In Arkansas you get a homestead tax exemption of $300 on your home and two acres. my little 1500 sq ft home isn’t valued enough to require me to pay taxes on it. Now my barns shop & other land are taxed.
Obama has inspired the Taliban
Behind the Scenes of Bowe Bergdahl’s Release
Asked whether the Taliban would be inspired by the exchange to kidnap others, a commander laughed. “Definitely.”
Time
Direct link…
http://time.com/2826534/bowe-bergdahl-taliban-captors/
The European Central Bank has introduced a raft of measures aimed at stimulating the eurozone economy, including negative interest rates and cheap long-term loans to banks.
It cut its deposit rate for banks from zero to -0.1%, to encourage banks to lend to businesses rather than hold on to money.
The ECB also cut its benchmark interest rate to 0.15% from 0.25%.
The ECB is the first major central bank to introduce negative interest rates
http://www.bbc.com/news/business-27717594
best idea yet
Gun Store Sign: ‘Will Trade Obama To Mexico For Sgt. Tahmooressi’
http://houston.cbslocal.com/2014/06/05/gun-store-sign-will-trade-obama-to-mexico-for-sgt-tahmooressi-god-help-us-all/
wonder how people might behave WTSHTF ???
how do they behave now ?
Onlookers allegedly steal groceries from woman killed in crash
http://www.chron.com/news/houston-texas/houston/article/Onlookers-allegedly-steal-groceries-from-woman-5531076.php
“Dow, S&P close at new records”
The above is the news for June 5th 2014 while 50 million people or roughly one in six are eating due to EBT cards. There is a tad of a disconnect here.
Here in the sewer that was once England (and will be again), I’ve seen this cycle in action, but in the coming total collapse, this may not apply.
Years ago, an internet researcher was looking into who owned all those estate agents (would that be realtors in the US?) with different names, that seem to fill entire streets as if competing with each other. What he found was that they are different trading names of a single company, which in turn is owned by one of the major banks (RBS).
He was threatened with legal action for revealing this fact, and I don’t know what happened next.
Estate agents control house prices in conjunction with the banks that own them. The agent sets the price and takes a cut, and the bank provides the mortgage at extortionate rates.
With full government approval (of course) the banks then create a downturn by denying loans to businesses and raising interest rates, so people lose their jobs, as well as being expected to pay even higher mortgage charges.
At the same time, the banker-owned estate agents force house prices down by refusing to handle any property they consider over-priced, creating a “negative equity” situation which makes it impossible for struggling mortgage holders to cut their losses by selling at anywhere near the price they paid. If they still have a job, they have to stay put, but they’re the lucky ones.
Being suddenly unemployed, many can’t manage the increased mortgage payments on what is now an overpriced house, so the bank effectively STEALS what was their home and kicks them out to fend for themselves in any way they can.
Banks control the government. Banks control house prices, both by owning the estate agents and by their direct control of borrowing. Banks create jobs and then misuse their power to eliminate those jobs. Boom and bust. Boom and bust. It’s an endless cycle created and controlled by the banks to increase their illegitimate “ownership” of EVERYTHING.
If we’re ever to be free, we MUST break the money-as-debt SCAM and jail the bankers, though I’m sure many would rather see them dangling from lamp-posts (but to say any more would be deemed “illegal” and zog would get very angry and call us nasty names).
The jew goes by many names, including baal, satan, beelzebub, moloch, ahriman, etc. We defeat him or we fail.
You’re soo focused on banks and bankers, Barney. It’s kind of misplaced. Especially your racial perspective. As if non-jews don’t own banks? wth? If you’ll care to notice, it’s gooberment which the banks draw all their power from. Without gooberment, banks wither and die on the vine unless people support them.
The uber-bank is the B.I.S. Do you ever wonder how central banks get established? And who directs these central banks? Hint: it ain’t from, as dupes such as Durango “Krugman” Kid alludes to, The Fed.
It’s not about race, mang. It’s about power and control for those who wield it in every nation, of many races and many creeds.
If you do not see that. You’re fricking blind as a bat.
Don’t be a bat.
I found a gem of an article some of you may be interested in reading, here’s a bit of it:
“While some may view that the expansionary monetary policy can mitigate the adverse effects of a crisis, the Austrian School begs to differ. […]
[Are there people here who try to pound that idea home? That the expansionary monetary policy can mitigate the adverse effects of a crisis?]
“The supply of credit gives the false impression that money originally saved for investment has increased. By doing so, banks mislead borrowers into believing that the pool of investible funds is bigger, and therefore they tend to do what entrepreneurs do: invest in larger production facilities [or new cars] or projects they originally could not afford to finance. These investments bear what economists describe as a “longer process of production”, or capital good industries that stimulate a shift of investment away from consumer goods. This shift is unsustainable, and eventually a correction ensues. The reason is that you have a market that is out of balance and falsely directed to a level of investments that is far from reality. In other words, the state has instigated unsustainable growth.”
The article describes a five step cycle of boom to bust. In step five, “The Bust: Decline in value of investments, particularly assets. …” This is something the Durango “Krugman” Kid’s of the world and the RICH99’s Do Not want you to know about or contemplate. That’s why they ridicule those who they see as having little or no assets or those who try to anticipate the future as anything but rosy. They want to sucker you in, for whatever reason.
Learn for yourself about, ‘The illusion behind the boom’. The cheerleaders for empire such as the former mortgage broker Durango “Krugman” Kid don’t want you to know this. Heck, even they probably don’t know. All they know is piles of empire loving B.S.
http://www.safehaven.com/article/34077/why-the-bust-is-inevitable-according-austrian-business-cycle-theory
Just keep in mind what HousingAnylist says over and over again at TheHousingBubbleBlog.com, “Housing is 250% overvalued.”.