Home › Forums › Other › WARNING if you are feverishly trying to “score” one of them REO deals, DON’T READ.
Wow, I thought I was bearish. The Automatic Earth is a good read, go take a look at http://theautomaticearth.blogspot.com/2009/06/june-17-2009-40-ways-to-lose-your.html. Not saying I agree, but I’ve enjoyed the site. I’ve pasted a few of the points of interest.
1. Deflation is inevitable due to Ponzi dynamics (see From the Top of the Great Pyramid)
3. Cash will be king for a long time.
4. Printing one’s way out of deflation is impossible as printing cannot keep pace with credit destruction (the net effect is contraction)
10. Real estate prices are likely to fall by at least 90% on average (with local variation)
12. We are headed eventually for a bond market dislocation where nominal interest rates will shoot up into the double digits
13. Real interest rates will be even higher (the nominal rate minus negative inflation)
14. This will cause a tsunami of debt default which is highly deflationary.
26. There should be no lasting market bottom until at least the middle of the next decade, and even then the depression won’t be over.
32. There will be war in the labour markets as unempoyment skyrockets and wages and benefits are slashed.
Sweet, I’m looking forward to the day I can buy a few beach front property in San Diego.
hopefully by that time you won’t be living on your savings and unemployed 🙁
You can always plant your own veggies, raise your own chicken, etc. All that while living in a beach front house in SD :-).
