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.
