Collapse of the American Empire: Swift, Silent, Certain
Collapse of the American Empire: Swift, Silent, Certain – A combination of fiscal deficits and military overstretch suggests that the United States may be the next empire on the precipice.” Yes, America is on the edge.
Why California is Doomed – California is doomed for two simple but profound reasons: the cost structure is too high for most businesses to survive, and a boom-dependent economy.
Next Crisis: Everything Could Be Leveled Within 12 Hours – When the CBO notifies the public that the debt/GDP in a decade will be 90% and that total marketable debt will double to $20 trillion, the game is over.
Food Stamps At Record High – Almost 39 million Americans received food stamps in December, the most ever, as the jobless rate hovered near a 26- year high.
Owners Walk From Homes By The Thousands – With more than 500,000 households in Michigan owing more on their mortgages than the homes are worth, thousands of Michigan residents are choosing to abandon their homes and walk away.
Our World Balances on a Sea of Debt – The banks that control the world’s supply of money are no better than counterfeiters – and their system of juggling debt has left the global economy teetering on the brink of ruin.
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March 10th, 2010 at 9:10 PM
We here in Michigan are very aware of how bad the economy is. My house is now worth half the original mortage/purchase price. Many bought in to the "American dream is to own a home" myself included, but I realized several years ago, it's not a house, it's property as in land. What can you do with a plot of land that barely has room for the foot print of a house and garage?
I have my house on about 1/10 an acre of land, and 10 acres of land about 100 miles away. Looking at it from a business angle the 10 acres have a much higher worth that my house at 1/15th the cost. I have a well, a cabin with wood heat, and about 2 acres cleared land for crops, which also doubles as a great wild life attractant or what I like to call "groceries on the hoof".
We can buy a house for 250,000 scrimp and save, make sacrifices, forego vacations and material items just to pay extra and get paid off sooner than 30 years, only to hit hard times at the end of 20 years, just as the mortage is paid off and lose it ALL, because we can't pay 7000 in back property tax.
property was the american dream BEFORE property tax, before you could lose 30 years of acumulations that you paid for thru sweat, toil and sacrifice, only to lose it all due to your inability to make some politicians boat payment.
My land is worth more to me now than ever. Yearly "property tax" on my land= $230.00
Yearly "property tax" on my house= $8300.00
If you wonder "is this guy in a desperate situation"? the answer is no, I am doing fine thank you for your concern, it just makes me sick to see so many people lose everything because government has become such a huge burden, and the only ones they can take from are the ever declining number of productive citizens.
Just another rant from
Jerry
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March 10th, 2010 at 11:38 PM
Jerry,
You are right about the government, they are taking from the remaining productive people BUT don't get caught in the crossfire because if it all collapses your parcel of land becomes a financial liability plus a very unsafe place to live.
Plan some exit strategy even if you think the worst has passed by – it could not hurt you.
I live in one of the best areas in the country for real estate investments – Southern California. I watched my portfolio go from a 2.5 million net worth to nothing in just over 2 years. It's awful that I did not sell in '05 as planned (got greedy) but it is what it is & can't cry over spilled milk.
There is no foreseeable stabilization within the next 5-7 years, in fact it is clearly going to decline further. This is my business & I know the projections and remember, I'm talking about the Mecca of real estate trends – California.
Additionally, the apathy and the "I could give a crap less about my credit, the bank can have my property" mentality has increased at an alarming rate, far past the mid 90's cycle.
Keep an ear to the ground my friend …
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March 12th, 2010 at 10:06 PM
My house in Michigan was recently asessed at 1/3 the the puchase value. But my property taxes are still rated at my purchase value. I can see why so many people in this state are walking away from their houses and moving to other states. I know of three people who did this, moved out of state and could not be happier. Michigan overburdening tax system is killing this state. The tax and spend politicians have to be stopped.
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