Posted on 06/09/2011 10:09:15 PM PDT by Kartographer
Reality is beginning to break through. Gas and grocery prices are on the rise, home values are down, and vast majorities think the country is on the wrong track. The result is sadness and frustration, but also an inchoate rage more profound than the sign-waving political fury documented during the elections last fall.
-SNIP- •Director of National Intelligence Dennis C. Blair said:
"The global economic crisis ... already looms as the most serious one in decades, if not in centuries ... Economic crises increase the risk of regime-threatening instability if they are prolonged for a one- or two-year period," said Blair. "And instability can loosen the fragile hold that many developing countries have on law and order, which can spill out in dangerous ways into the international community."***
"Statistical modeling shows that economic crises increase the risk of regime-threatening instability if they persist over a one-to-two-year period."***
“The crisis has been ongoing for over a year, and economists are divided over whether and when we could hit bottom. Some even fear that the recession could further deepen and reach the level of the Great Depression. Of course, all of us recall the dramatic political consequences wrought by the economic turmoil of the 1920s and 1930s in Europe, the instability, and high levels of violent extremism.”
Blair made it clear that - while unrest was currently only happening in Europe - he was worried this could happen within the United States.
(Excerpt) Read more at zerohedge.com ...
I feel for you. I hope you are able to get out of your home as much as you put into it. I know these time are rough. A few years after college, one of my three roommates/landlord was in foreclosures. As a group, we’d move into one of the houses he bought in foreclosure, and sometimes I would live in houses 5,500 or so square ft. He would tell the stories sometimes, but he was never empathetic. He would buy them for about 55-60% of what people paid for them, (because he knew they’d drop in value in the next 3-4 years (that was BEFORE the 2008 crisis, by several years). Even then, we all knew the price was too high, and in a bubble.
He wanted me to work with him, but I opted not to. Seeing so many people lose out because they overextended had themselves, would have been too difficult for me to cope with (he was a bit of a callous guy). I met some of the people, including a family who got a divorce over finances (although that’s only ever a catalyst, not the cause). It’s sad, but there’s a long way to go. There’s no economic activity to support a housing market in the range it’s been. It was like giving an 18 year old a credit card (the gov. forcing banks to give mortages). The 18 year old thinks they’re rich, and that the price is only a number. It’s only when they have to pay it off that they realize there’s a number of man hours of work attached to that price.
As a side note, I recently spoke with my father about a topic, and he was pricing everything in terms of hours of work. In my opinion, it’s a very smart thing to do, because A) It’s a lot easier to personally factor out a lot of garbage in “price.” and B) It shows you where your labor time is going directly. Just a handy bit of advice, on a bit of a tanget. Best of luck to you, I hope your situation goes weel for you, hang in there.
ping
I’m not so sure I can buy into the roving bands, road warrior type scenario.
The reason is this: Which of the following gives you a longer life expectancy?
1) You don’t eat. But you live and breath until you starve to death or
2) You decide after two or three days without a Big Mac to bust into a few homes to see what you can pilfer
The answer, of course, is number 1.
The casualty/mortality rate of those who choose number 2 would be phenomenal. I doubt a man could break into 3 or 4 homes before he was turned into fertilizer. Or dog food. Hell, pooch gotta eat too!
BUT!!!!!!
I think the above applies if you are talking suburbs or rural areas.
If you are in a city of over 100,000 or so, yur toast...
That “study” sounds just like the ridiculous kind of exercise an academic would do. I do agree that prices spiked from the late ‘90s to the mid 2000s, but this was a direct result of that silly old “supply and demand” thing again. Yes, demand was artificially boosted through government and Wall Street corruption and that caused the relatively limited supply to command higher prices.
Prices will level off when the economy reaches some degree of stability, and supply and demand return to historical “normal” levels and cycles. At that point, houses will, as always, be “worth” exactly what a buyer is willing to pay and a seller is willing to accept in an arm’s length transaction. That’s Economics 101.
FRegards,
LH
Thanks for the ping Dubya.
I was just reading the story below when you pinged. Something’s afoot, that is for sure.
“Forecast for U.S. cities: Confrontation, chaos?”
http://www.wnd.com/index.php?fa=PAGE.view&pageId=309345
Me too. All it took was one small tipping point to push the thugs into the streets destroying everything in their path like locusts. They were even shooting at firefighters trying to put out the fires they had set ablaze in their own communities. The absolute worst of mankind and it isn't pleasant. People with entitlement mentalities are just this side of burning down their neighbor's house for the sake of creating choas and destruction to try to get their point across. They wait for a tipping point to unleash their savagery on the populace and glean some sort of sick sense of satisfaction out of it.
I pray I never witness that again.
There was a story on Drufge in the last few weeks about someone predicting chaos. Was it The Ragin Cajun?
They’re smelling a complete political loss coming in 2012. Think last Nov.10th’s on steroids. Scary to think of what might be up their sleaves to avert this. Remember they work for the 0 that helped bring/create the ‘Arab Spring’ “uprisings” (aka choas).
That is why it would be good to cultivate the image of the crazy gun nut psycho in the neighborhood. Might deter people from bothering you in the future. Plus it is cool to have that rep.
The unrest will be in the cities. The Commie Gov’t in these cities have made sure they are unarmed and defenseless. I don’t worry about them too much.
“At that point, houses will, as always, be “worth” exactly what a buyer is willing to pay and a seller is willing to accept in an arm’s length transaction.”
Exactly, which is probably (based on all known data) about half of what they cost now, and until recent history, goes down, not up over time. Those who understand this won’t be shocked by falling housing prices, as “unexpected” anymore than the “Unexpected” growing unemployment.
You are absolutely correct, and there is not a price something “should” be worth, intrinsically, just what it “should” be worth logically, based on known data. That’s all I was saying.
“Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take; but as for me, give me liberty or give me death!” ~ Patrick Henry
BUMP TO THAT! (Thanks!)
“‘Freaking Scary’: Anarchists Hit Washington State Newspaper & Home of Photographer”
http://www.freerepublic.com/focus/f-news/2733363/posts
If you would like, the people of Iowa, Nebraska, and Missouri have a lot of water right now to give you! :)
If we had a conduit to send it through, Texas would be only too happy to purchase water from Iowa, Nebraska and MIssouri.
They wanted new housing and replacement stuff. They figured that if the totally burned out their existing residences, that the welfare folks would put them into new and better residences, and supply them with new furniture and clothing to replace what burned.
6/15/11
“Stocks slump as Greek crisis turns violent”
http://www.freerepublic.com/focus/f-news/2735137/posts
Revolution may be just what we need. Politicians don’t care to listen to the people anymore, and it seems that armed conflict is unavoidable.
How many more 99’ers will it take? Once enough people not drawing anything and can’t get a job it shouldn’t take long.
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