[quote=5yearwaiter][quote=partypup][quote=5yearwaiter][quote=scaredycat]whatever result screws me is the one most likely to occur. but seriously, does dollar devaluation send house prices up or down?[/quote]
The key driver for all of this will be unemployment. We all know that *real* unemployment is closer to 20%, which means we are now reaching depression levels. When layoffs begin to seriously skyrocket next year, we can easily see *real* unemployment reach 30%. At that level, the demand for new and existing homes will literally crater.
Add to that the fact that a USD currency crisis will send bond rates MUCH higher (think the 70s on steroids), and mortgage rates will follow. My parents had an 18% rate on their new home in 1978. If we were to get anywhere close to that now (and we all know that this country is in a much worse position fiscally than we were in the 70s), then the demand for homes will go through the floor.
Seriously, all around, it is just a very, very grim situation for housing.
Food and energy, on the other hand, will skyrocket. People need food to keep breathing and moving, they will have a hard time sharing food the way they share homes, it is cheaper than housing, people will be focused more on investments in their survival, not their portfolios, and no down payment or credit check is required to purchase food. Oil, which is currently dollar-denominated but likely not for long, will shoot skyward when the dollar collapses. Oil has been too cheap for too long in the US (anyone who travels to Europe, Africa or Latin America knows the *true* price of oil), and we are about to join the rest of the world in that regard.
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When completed this reading … all my face and hads filled with Swett… shevering in fingers while I am typing. That much beautiful life would able to turn to this level. What the heck our rulers and top knotch folks doing all the time just for pusing us more down. Well… it might be better slowly start living in rock age(cave-man)style instead following this tiny hyper image life and get frustrated longer time or forever…..[/quote]
5year, stop shivering and take action. Build up your food supplies, take half of your cash and buy silver, trim your expenses and if you have any access to 6+ hours of sunlight per day at your home or apartment, START GROWING A GARDEN. People have made it through desperate times before in this country and many others countries throughout history. And cave men survived much worse 😉 And we have always come through the other side. Trouble is, there are many, many more of us on this go round, and so quite a few folks will simply fall by the wayside. Don’t be one of them. You have been blessed with the foresight to see what’s coming. Use it to your advantage and you will be fine 🙂 We are going to come through the other side of this with a totally different set of priorities, but with better, happier, more grounded and fulfilled lives, IMO.
As many of you know, I work in Hollywood, and I can’t think of a set of people who are in greater need of grounding and a priority reset. This pain is necessary.
The only other thing that is necessary is for our elected *leaders* to start feeling some of this pain, as well. Karma is coming for them all, and it is going to be a bitch.
