[peterb]

I once read an article written by a guy that worked on the Golden Gate Bridge in 1935. This was one of many WPA projects the Fed govt had started to create jobs. He was quick to point out that there was a big camp of workers waiting for someone on the GG Bridge project to die so that one from the camp could take his place.

His point was that WPA was at best a band-aid and that there were still tons of people unemployed. Then he points out that by 1940 unemployment was almost zero due to war related industry for feeding the European theater. Then the US entered and that was that for the Depression.

[peterb]

I once read an article written by a guy that worked on the Golden Gate Bridge in 1935. This was one of many WPA projects the Fed govt had started to create jobs. He was quick to point out that there was a big camp of workers waiting for someone on the GG Bridge project to die so that one from the camp could take his place.

His point was that WPA was at best a band-aid and that there were still tons of people unemployed. Then he points out that by 1940 unemployment was almost zero due to war related industry for feeding the European theater. Then the US entered and that was that for the Depression.

[peterb]

I once read an article written by a guy that worked on the Golden Gate Bridge in 1935. This was one of many WPA projects the Fed govt had started to create jobs. He was quick to point out that there was a big camp of workers waiting for someone on the GG Bridge project to die so that one from the camp could take his place.

His point was that WPA was at best a band-aid and that there were still tons of people unemployed. Then he points out that by 1940 unemployment was almost zero due to war related industry for feeding the European theater. Then the US entered and that was that for the Depression.

[peterb]

I once read an article written by a guy that worked on the Golden Gate Bridge in 1935. This was one of many WPA projects the Fed govt had started to create jobs. He was quick to point out that there was a big camp of workers waiting for someone on the GG Bridge project to die so that one from the camp could take his place.

His point was that WPA was at best a band-aid and that there were still tons of people unemployed. Then he points out that by 1940 unemployment was almost zero due to war related industry for feeding the European theater. Then the US entered and that was that for the Depression.

[peterb]

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

[peterb]

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

[peterb]

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

[peterb]

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

[peterb]

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

[peterb]

Despite what the govt tells us, we’re in a recession that looks to be headed towards a depression. And this may be globally, not just domestic. Demand destruction can really destroy prices. Even with all the currencies sloshing around the planet looking for the next investment/bubble.
Based on the market violence in swings, I’d say this money is having a real problem finding a home it can stay in for a while.
October and November should be blood bath months in the markets as earnings should be exremely bad. And as the market finds out there really isnt a new bubble to get into, it’s going to go to long term hold and safe haven. The Fundementals of most assets are still way outta whack. Prices need to adjust down to make investment sense. This will probably drive gold up in price since most countries will increase debt to save their markets. Like the US is doing now. and as we’ve learned in the RE market, at a certain level debt is a killer.

This is just a train of thought I”ve had latley as I am thinking more about increasing my gold holdings as all currencies look sketchy to me for the next few years.

[peterb]

Despite what the govt tells us, we’re in a recession that looks to be headed towards a depression. And this may be globally, not just domestic. Demand destruction can really destroy prices. Even with all the currencies sloshing around the planet looking for the next investment/bubble.
Based on the market violence in swings, I’d say this money is having a real problem finding a home it can stay in for a while.
October and November should be blood bath months in the markets as earnings should be exremely bad. And as the market finds out there really isnt a new bubble to get into, it’s going to go to long term hold and safe haven. The Fundementals of most assets are still way outta whack. Prices need to adjust down to make investment sense. This will probably drive gold up in price since most countries will increase debt to save their markets. Like the US is doing now. and as we’ve learned in the RE market, at a certain level debt is a killer.

This is just a train of thought I”ve had latley as I am thinking more about increasing my gold holdings as all currencies look sketchy to me for the next few years.

[peterb]

Despite what the govt tells us, we’re in a recession that looks to be headed towards a depression. And this may be globally, not just domestic. Demand destruction can really destroy prices. Even with all the currencies sloshing around the planet looking for the next investment/bubble.
Based on the market violence in swings, I’d say this money is having a real problem finding a home it can stay in for a while.
October and November should be blood bath months in the markets as earnings should be exremely bad. And as the market finds out there really isnt a new bubble to get into, it’s going to go to long term hold and safe haven. The Fundementals of most assets are still way outta whack. Prices need to adjust down to make investment sense. This will probably drive gold up in price since most countries will increase debt to save their markets. Like the US is doing now. and as we’ve learned in the RE market, at a certain level debt is a killer.

This is just a train of thought I”ve had latley as I am thinking more about increasing my gold holdings as all currencies look sketchy to me for the next few years.

[peterb]

Despite what the govt tells us, we’re in a recession that looks to be headed towards a depression. And this may be globally, not just domestic. Demand destruction can really destroy prices. Even with all the currencies sloshing around the planet looking for the next investment/bubble.
Based on the market violence in swings, I’d say this money is having a real problem finding a home it can stay in for a while.
October and November should be blood bath months in the markets as earnings should be exremely bad. And as the market finds out there really isnt a new bubble to get into, it’s going to go to long term hold and safe haven. The Fundementals of most assets are still way outta whack. Prices need to adjust down to make investment sense. This will probably drive gold up in price since most countries will increase debt to save their markets. Like the US is doing now. and as we’ve learned in the RE market, at a certain level debt is a killer.

This is just a train of thought I”ve had latley as I am thinking more about increasing my gold holdings as all currencies look sketchy to me for the next few years.

[peterb]

Despite what the govt tells us, we’re in a recession that looks to be headed towards a depression. And this may be globally, not just domestic. Demand destruction can really destroy prices. Even with all the currencies sloshing around the planet looking for the next investment/bubble.
Based on the market violence in swings, I’d say this money is having a real problem finding a home it can stay in for a while.
October and November should be blood bath months in the markets as earnings should be exremely bad. And as the market finds out there really isnt a new bubble to get into, it’s going to go to long term hold and safe haven. The Fundementals of most assets are still way outta whack. Prices need to adjust down to make investment sense. This will probably drive gold up in price since most countries will increase debt to save their markets. Like the US is doing now. and as we’ve learned in the RE market, at a certain level debt is a killer.

This is just a train of thought I”ve had latley as I am thinking more about increasing my gold holdings as all currencies look sketchy to me for the next few years.

[peterb]

I think all the Wall Street lobbyist beat me to the call. They give more money than me, too.

[Author]

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