Socrattt, I with you all the way here, but I would add ‘ignorance’ to the list of direct causes for economic woes. Looking at the big picture, the declining US manufacturing base has led to an over reliance on the financial services industry. The volatility of financial services is being felt primarily because it is neither understood sufficiently, nor regulated enough in order to tame it’s unpredictable nature. Let’s hope this costly mistake will be a constant reminder, that the US needs to overhaul how it does business in the broad sense of the word.

Socrattt, I with you all the way here, but I would add ‘ignorance’ to the list of direct causes for economic woes. Looking at the big picture, the declining US manufacturing base has led to an over reliance on the financial services industry. The volatility of financial services is being felt primarily because it is neither understood sufficiently, nor regulated enough in order to tame it’s unpredictable nature. Let’s hope this costly mistake will be a constant reminder, that the US needs to overhaul how it does business in the broad sense of the word.

Good topic! I agree, the economy has now come to the front of the line. This should tell something to anyone considering buying RE right now. We’re in systemic trouble. All assets got too expensive over the last 5 years. We have seen no real wage increases over this time as well. And the future for wage increases looks terrible as unemployment is rising. Demand is headed down fast for everything but essential items like food and energy. A global recession is at hand. As the US govt takes on more debt, it is destabilizing the US$. This will probably devalue the US$ over time.

So what have we got?

1)Frozen to declinging wages and constricting credit.
2)Govt increasing debt to amazing levels.(weak US$)
3)Over priced assets.(IMO)

If the consumer is really 70% of the US economy, then the economy is defacto “tapped out”. And headed downward.

It looks like the US cant increase demand, so prices should not be going up here.
If the rest of the world is going to recession, then it wont increase demand either.

This scenario tells me to put my wealth into a place that’s a decent store of value and wait for the melt-down to complete its course. Looking to buy down the road. So the question for me is, what store of value will hang on here? Any answers?

Feel free to shot holes in this and come up with other ideas as I am looking for answers and leaving my ego at the door.

Thanks

Good topic! I agree, the economy has now come to the front of the line. This should tell something to anyone considering buying RE right now. We’re in systemic trouble. All assets got too expensive over the last 5 years. We have seen no real wage increases over this time as well. And the future for wage increases looks terrible as unemployment is rising. Demand is headed down fast for everything but essential items like food and energy. A global recession is at hand. As the US govt takes on more debt, it is destabilizing the US$. This will probably devalue the US$ over time.

So what have we got?

1)Frozen to declinging wages and constricting credit.
2)Govt increasing debt to amazing levels.(weak US$)
3)Over priced assets.(IMO)

If the consumer is really 70% of the US economy, then the economy is defacto “tapped out”. And headed downward.

It looks like the US cant increase demand, so prices should not be going up here.
If the rest of the world is going to recession, then it wont increase demand either.

This scenario tells me to put my wealth into a place that’s a decent store of value and wait for the melt-down to complete its course. Looking to buy down the road. So the question for me is, what store of value will hang on here? Any answers?

Feel free to shot holes in this and come up with other ideas as I am looking for answers and leaving my ego at the door.

Thanks

Good topic! I agree, the economy has now come to the front of the line. This should tell something to anyone considering buying RE right now. We’re in systemic trouble. All assets got too expensive over the last 5 years. We have seen no real wage increases over this time as well. And the future for wage increases looks terrible as unemployment is rising. Demand is headed down fast for everything but essential items like food and energy. A global recession is at hand. As the US govt takes on more debt, it is destabilizing the US$. This will probably devalue the US$ over time.

So what have we got?

1)Frozen to declinging wages and constricting credit.
2)Govt increasing debt to amazing levels.(weak US$)
3)Over priced assets.(IMO)

If the consumer is really 70% of the US economy, then the economy is defacto “tapped out”. And headed downward.

It looks like the US cant increase demand, so prices should not be going up here.
If the rest of the world is going to recession, then it wont increase demand either.

This scenario tells me to put my wealth into a place that’s a decent store of value and wait for the melt-down to complete its course. Looking to buy down the road. So the question for me is, what store of value will hang on here? Any answers?

Feel free to shot holes in this and come up with other ideas as I am looking for answers and leaving my ego at the door.

Thanks

They should remake the film “Weekend at Bernies” but instead they should call it “Weekend at Bernake’s”

You know the 1989 film where two guys prop up a dead guy and party with him all weekend and pretend he is alive to maintain apperances and use his beach front pad and have one last wild party?

[img_assist|nid=8960|title=Weekend|desc=|link=node|align=left|width=180|height=259]

Well that is what is happening to Casino Wall Street right now…

They should remake the film “Weekend at Bernies” but instead they should call it “Weekend at Bernake’s”

You know the 1989 film where two guys prop up a dead guy and party with him all weekend and pretend he is alive to maintain apperances and use his beach front pad and have one last wild party?

[img_assist|nid=8960|title=Weekend|desc=|link=node|align=left|width=180|height=259]

Well that is what is happening to Casino Wall Street right now…