"We Are On The Verge Of A Great, Great Depression"
storm888
Posts: 11,701 ✭✭✭
CNBC: The End Is Near
Drudge picked up the quote and top-paged it.
I suspect Peter Yastrow won't be back on CNBC for awhile.
"Interest rates are amazingly low and that, thanks to Ben Bernanke, is driving everything," Yastrow said.
"We’re on the verge of a great, great depression. The [Federal Reserve] knows it."
....................................
QE3 is right around the corner.
We could easily plunge into a circumstance that BOTH harshly devalues
the dollar AND makes dollars "difficult" for the peasants to obtain.
America should have taken its medicine in 2008. SOON, everybody will
understand that FACT.
Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
0
Comments
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<< <i>With housing prices still dropping fast both my wife and I are considering buying 1-2 nice homes in the Tucson AZ. area. 1 for our retirement residence and 1 for renting out for some modest income. We are debt free at this end with large yet low interest savings in the bank. We have noticed that homes that have went for $300,000 in the past now going for less than $150,000 now and the prices are still dropping!. We will be able to hold these properties for at least 10-12 years. We feel its a wonderful time in real estate for cash buyers. We are going to wait until August this year then fly down there and make lots of LOW BALL offers and see what happens. >>
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I agree that there are MANY seeming bargains today.
I suspect the downtrend will continue, but I agree that waiting for
prices to go to ZERO is NOT the correct play.
The key on individual rental houses is to make certain that the target
town/city has a sustainable/rising employer base; buying "bargains"
in unemployment Meccas will not work in the short term.
Tucson has lots of problems, but it may be a good prospecting spot.
I would carefully research the demographics AND the local political
situation, before I jumped in there.
As a lifelong metals-bug, the number of real properties I end up with
has always been how I keep score.
<< <i>With housing prices still dropping fast both my wife and I are considering buying 1-2 nice homes in the Tucson AZ. area. 1 for our retirement residence and 1 for renting out for some modest income. We are debt free at this end with large yet low interest savings in the bank. We have noticed that homes that have went for $300,000 in the past now going for less than $150,000 now and the prices are still dropping!. We will be able to hold these properties for at least 10-12 years. We feel its a wonderful time in real estate for cash buyers. We are going to wait until August this year then fly down there and make lots of LOW BALL offers and see what happens. >>
I bought a condo about 6 months ago that I am currently renting and been trying to buy a townhouse on a short sale. It is indeed a good time to buy if you are going to live in the property but not so sure it is a good time to buy investment properties to rent them out. Lets face it, if the economy gets worst, tenants will not be able to pay rent...
<< <i>
I bought a condo about 6 months ago that I am currently renting and been trying to buy a townhouse on a short sale. It is indeed a good time to buy if you are going to live in the property but not so sure it is a good time to buy investment properties to rent them out. Lets face it, if the economy gets worst, tenants will not be able to pay rent... >>
If the economy gets worse, people will lose homes. People will lose townhomes and condos. But they have to live somewhere. People in apartments have to live somewhere. Yes, we could see tens of millions of people on the street and under bridges, but I tend to be more optimistic than that.
Well-bought, attractive, well-maintained, affordable apartments in good neighborhoods are worth consideration.
--Severian the Lame
<< <i>IMO if it gets that bad it's a renters market and you may not even get enough to pay the mortgage so beware. >>
Remember we are talking buying a home or homes for 100% CASH no mortgage payments. Lets face it with the banks giving little interest on savings you have to do something with the money. The interest we receive from the banks on our savings is so little you might at well say we are lending money to our bank interest free. I will say that each year our bank does send us a box of candy for christmas. And in our opinion the stock market (FORGET ABOUT IT!). We think buying property for cash cant be much worse than keeping it in a bank!. In fact we think buying for cash and keeping the money out of the bankers hand just might be a good thing.
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mariner67, and Mikes coins
<< <i>Great x 2 Depression, OK. Hyperinflation, OK. It all depends on which "exit-strategery" the Fed will exercise. >>
Remember stagflation?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>
<< <i>Great x 2 Depression, OK. Hyperinflation, OK. It all depends on which "exit-strategery" the Fed will exercise. >>
Remember stagflation? >>
Yes. I'm not sure this "beast" can be so contained.
We’re on the verge of a great, great depression. The [Federal Reserve] knows it."
Gee, where have I heard that before.
We could easily plunge into a circumstance that harshly devalues the dollar
If we have a Depression the dollar will only be devalued against gold and to a lesser extent silver. All other assets--equities, real estate, corn, wheat, oil will be much cheaper. Hence the dollar will appreciate and the cost of living will decline. This will finally be the just desserts that the savers have been waiting so patienly for.
Knowledge is the enemy of fear
there are a lot better deals out there to come. A friend of mine ----watch my numbers closely because they are to the nearest thousand dollars...
Just closed on a home near you. 1 ACRE, greenbelt back yard(or desertbelt if you prefer
Auction $18,000 + 10% auction fee=$19,800 cashiers check to close
plus $5,000 repairs.
_______________________________________________
There are also houses in L.A. County and Kern county with similar but a little more expensive prices at auction. The worst IMHO, is yet to come on a lot of outlying 2nd tier properties in secondary markets.
Unless there are adequate job opportunities within max 20-30 miles----secondary markets are toast in the near, medium and long term
<< <i>GOING BROKE,
there are a lot better deals out there to come. A friend of mine ----watch my numbers closely because they are to the nearest thousand dollars...
Just closed on a home near you. 1 ACRE, greenbelt back yard(or desertbelt if you prefer
Auction $18,000 + 10% auction fee=$19,800 cashiers check to close
plus $5,000 repairs.
_______________________________________________
There are also houses in L.A. County and Kern county with similar but a little more expensive prices at auction. The worst IMHO, is yet to come on a lot of outlying 2nd tier properties in secondary markets.
Unless there are adequate job opportunities within max 20-30 miles----secondary markets are toast in the near, medium and long term >>
Foreclosures just are not our bag. We do believe the glut of all these foreclosures and short sales are dragging all home prices down. We are looking at mainly new homes. In Tucson new homes are selling for far less then they cost to build. We don't want to have the trouble of "fixing it up" we got the bucks so we figure buy a new one with a warranty. Remember the home we are buying is where we will live in retirement we don't want fixing problems down the line. The home we have now is valued at 1 million at this time and its 100% paid off. We don't have to sell this home in this depressed housing market and have enough cash saved up to afford to pay taxes and other expenses involved in owning both homes for years if we have to. Employment isn't anything we are worried about as we have sufficient cash saved to retire at this time. We both still work full time by choice only. We both are 53 years old and consider ourselves lucky to be in this posision at this time, and our age. We are getting tired of the -50 winter temps here in Wisconsin! and Florida sux for us!. A warm and DRY climate sounds good to us!
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mariner67, and Mikes coins
<< <i>With housing prices still dropping fast both my wife and I are considering buying 1-2 nice homes in the Tucson AZ. area.
<< <i>
you have been to Tucson in August? you'll probably find some good prices then, because the weather can be unbearable with the monsoons and follow that with 110 degrees.
<< <i>
<< <i>With housing prices still dropping fast both my wife and I are considering buying 1-2 nice homes in the Tucson AZ. area.
<< <i>
you have been to Tucson in August? you'll probably find some good prices then, because the weather can be unbearable with the monsoons and follow that with 110 degrees. >>
I lived in Tucson AZ. for 6 years in my bachelor life so I know how hot it gets there. My wife hasn't experienced it yet, but last night I turned on the oven here set it to 350 degrees opened the door and had her put her hand inside then told her that's what Tucson feels like in the summer!. After we treated he burned hand, She said she wants AC in her home there "like mother nature intended" LOL.
(x2,Meltdown),cajun,Swampboy,SeaEagleCoins,InYHWHWeTrust, bstat1020,Spooly,timrutnat,oilstates200, vpr, guitarwes,
mariner67, and Mikes coins
I've explained to them that I believe this is a huge mistake and this is why. When the greatest of depessions comes and the city can't afford to pay its cops. When people lose their jobs and can't put food on the table. When law and order, as we know it, ceases to exist. Do you really believe your rent checks will continue to arrive each month? Do you really believe what little law is left will be willing or able to do anything about it?
Another pleasant scenario. "Hey"... the government says, "We have millions of homeless everywhere! And here we have these two little old people with 11 houses....hmmm?"
<< <i>My parents have the vast majority of their wealth tied up in 10 paid off rental properties in a very large urban metropolis. No silver or gold.
I've explained to them that I believe this is a huge mistake and this is why. When the greatest of depessions comes and the city can't afford to pay its cops. When people lose their jobs and can't put food on the table. When law and order, as we know it, ceases to exist. Do you really believe your rent checks will continue to arrive each month? Do you really believe what little law is left will be willing or able to do anything about it?
Another pleasant scenario. "Hey"... the government says, "We have millions of homeless everywhere! And here we have these two little old people with 11 houses....hmmm?" >>
I sure hope they have fire insurance because I can see things getting really ugly in "a very large urban metropolis".
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
It's worse now than between 29-39.
<< <i>This is worse than the great depression. More people were back at work by this point in the depression on a percentage basis and no one had credit debt and the nation wasn't in hock.
It's worse now than between 29-39. >>
Interesting observation. Some say we are headed into a Great Depression. You contend we are there now. Not saying you're wrong. It's just sobering to read what we already know.
<< <i>
<< <i>This is worse than the great depression. More people were back at work by this point in the depression on a percentage basis and no one had credit debt and the nation wasn't in hock.
It's worse now than between 29-39. >>
Interesting observation. Some say we are headed into a Great Depression. You contend we are there now. Not saying you're wrong. It's just sobering to read what we already know. >>
Well, what would you call it when 1 in every 7 Americans is now on food stamps? Its just a game of semantics really. When 43,000,000 people in this country shop for food paid for by the government, things are not going very well, are they?
The government will nationalize all the Too Big Too Fail Banks and put the homeless in all those foreclosed homes, probably 5 families per house. Kind of like Dr. Zhivago when Yuri returns to see his family home split into apartments.
Box of 20
<< <i>
<< <i>This is worse than the great depression. More people were back at work by this point in the depression on a percentage basis and no one had credit debt and the nation wasn't in hock.
It's worse now than between 29-39. >>
Interesting observation. Some say we are headed into a Great Depression. You contend we are there now. Not saying you're wrong. It's just sobering to read what we already know. >>
That's just my opinion. Take it with a grain of salt.
This month and last month...I've purposefully shopped after the 25th and before the 30th and the lack of customers is dramatically apparent. There are layoffs in the stores and cut hours. Employees are discouraged.
Walmart is near the bottom of the food chain, when they feel it-----that's not a good sign. Theoretically, In a recession they should see increased business. However the decline in the dollar which increases their costs and the weak retail sector is combining to deal them a double hit. And combined with the proliferation of discount operators, I'd say Walmart is a good indication of the weakness in this economy.
This isn't a double dip ---it's just one huge dip. We've never pulled out of the recession--just slowed the downward spiral and postponed the inevitable.
The free money thrown at Wall Street benefits Wall Street. Not main street. Main street is struggling.
Wall Street and the Banksters used the Feds Trillions to form an exit strategy. They know the collapse is coming. You think they would be altruistic and patriotic like the Bernake wants the public to believe.
Box of 20
<< <i>
<< <i>
<< <i>This is worse than the great depression. More people were back at work by this point in the depression on a percentage basis and no one had credit debt and the nation wasn't in hock.
It's worse now than between 29-39. >>
Interesting observation. Some say we are headed into a Great Depression. You contend we are there now. Not saying you're wrong. It's just sobering to read what we already know. >>
Well, what would you call it when 1 in every 7 Americans is now on food stamps? Its just a game of semantics really. When 43,000,000 people in this country shop for food paid for by the government, things are not going very well, are they? >>
For the 1 in 7 American's on food stamps they are in a Great Depression. It must be especially disheartening for them because the "food-stamp-president" hasn't turned their tide. In a Great Depression I would expect to see the Dow stay well under 10,000 for much longer than it did if it weren't for all the QE injections. Maybe it will again. RE is behaving like it's in a Great Depression. Until RE rebounds I don't see much hope since so many are tied up there.
This 'recession' we are in is a structured restructuring of the country. Wealth is under assault. This is by design not accident. There is a concerted effort to concentrate power in DC by some very shrewd types with alterior motives. This is not an accident. It's a backlash to the unbelievable success this country had between 1985-2005.
Jay Brahin who some of you might know and I had a chat years ago about what the outcome of this recession might be. I thought at the time that there might be a 20% chance of a revolution in this country. Jay thought I was nuts. I think that the chance is 25-30% now. Just a Cal guy from Berkeley looking at the bigger picture. Just my little opinion. And I've been through the school of hard knocks. Driving down the street in L.A. --you'd never know what's going on with the economy. Everything looks normal. But it isn't. Thank gawd my own problems are not overwhelming but they are overwhelming for more and more people and that's not a good sign. There but for the grace of God go I.
"Save you pennies son, it's going to be a cold winter". My dad's favorite saying. Some things change, everything remains the same.
Box of 20
cash flow to Government is reduced......wealth continues to be destroyed for the middle class....gap between very rich and everyone
else widens to a greater gap...then existed during the Great Depression. Unless Government finds a way for industry to return production
to the USA, there can be no improvement in the lives of people. Security in the cities will come under great pressure and local resources
will collapse. I see no end in sight for this to end well without some sort of martial law imposed. I am afraid, without some true leadership,
the ship of state will go down like the Titanic. We have not faced such a serious problem, since the Civil War. wish I could be more sanguine,
but after 72 years of being an observer of life, that way of life, is being extinguished. It is very sad what 30 years of bought and paid for Government
by both political parties, by the vested interests of powerful forces, have brought us all. Why should a few make billions, while many millions are
suffering so much.
Camelot
Funny, I thought of the very same line from the book. That line appears in almost every chapter.
<< <i>And where the hell is Baley to blow sunshine up our collective butts? He will tell you all is well...business as usual. I bet he's not on foodstamps though.
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i>Like in the HBO Series "Game of Thrones" Winter is Coming. >>
I had the exact same thought....
The Starks always end up being right, it just takes a while!
We can all end up taking the Black Watch, and sit on the wall to monitor the frontier if it gets worse.
Now, back to your regularly scheduled programming!
Until the acrimonious debate about whether to raise the debt limit and slash spending is resolved, many companies will be wary about spending more of their cash hoard
(x2,Meltdown),cajun,Swampboy,SeaEagleCoins,InYHWHWeTrust, bstat1020,Spooly,timrutnat,oilstates200, vpr, guitarwes,
mariner67, and Mikes coins
<< <i>
There is a concerted effort to concentrate power in DC by some very shrewd types with alterior motives. This is not an accident. It's a backlash to the unbelievable success this country had between 1985-2005.
. >>
There is greed and power struggles happening in wall street, your local government, and throughout many businesses in America.
Man has become more interested in his own fortunes and ideals instead of the well being of his neighbor.
To quote Jim Cramer..."It's not about making friends, it's about making money." Sadly, this is very true about our society today.
And quite honestly, it's only a matter of time when judgement day is coming to our very self-centered way of life.
the government has shifted away from economic stimulus and is focused on debt reduction
Really? When did this take place? I must have been napping when the policy shift was announced.
SHOW ME THE DEBT REDUCTION.
_________________________________________
EF
To quote Jim Cramer..."It's not about making friends, it's about making money." Sadly, this is very true about our society today.
NEWSFLASH: you want a friend?, you go get a dog. Poor people don't have friends, they have enablers. When poverty moves in, love moves out.
Jim Cramer? JIM CRAMER!!!.....geesh couldn't you have dug up somebody a little more relevent...say that guy in Kansas who called for the end of the world last month. He had some pretty good lines about this country. Cramer is the Aljezeera of wall street. Geesh. Irrelevent person. Try Keith Olberman next time, he's got some choice zingers
You guys are too funny.
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>The problem is lack of jobs, quality jobs....Lack of income....lack of purchasing power....companies start to cut back on employment...
cash flow to Government is reduced......wealth continues to be destroyed for the middle class....gap between very rich and everyone
else widens to a greater gap...then existed during the Great Depression. Unless Government finds a way for industry to return production
to the USA, there can be no improvement in the lives of people. Security in the cities will come under great pressure and local resources
will collapse. I see no end in sight for this to end well without some sort of martial law imposed. I am afraid, without some true leadership,
the ship of state will go down like the Titanic. We have not faced such a serious problem, since the Civil War. wish I could be more sanguine,
but after 72 years of being an observer of life, that way of life, is being extinguished. It is very sad what 30 years of bought and paid for Government
by both political parties, by the vested interests of powerful forces, have brought us all. Why should a few make billions, while many millions are
suffering so much. >>
The best way for government to "find a way" is to GET OUT OF THE WAY.
Member ANA, SPMC, SCNA, FUN, CONECA
<< <i>i think will see when this quanative easing stops. we shall see. jmo >>
John,
the problem is........ QE might not have an end game. A scary thought.
QE is devaluing the dollar to be sure...at least it looks that way to me.....how far is the dollar overvalued??
QE is only postponing the inevitable.
Really, a more plausible solution is to turn the young turks loose in this country and start creating wealth like we used to do. WE are the most resourceful when our backs are up against the wall with no exceptions on a scale of 300 million people. Our Capital, resources, labor and ingenuity have never been equalled in the history of mankind. The Egyptians, early Persians, the Romans and Germany post Weimar represent only a small fraction of what we have accomplished.
<< <i>We are on the verge of a great depression, but don't sell your stocks????? What kind of advice is that? >>
That's the advice of someone who knows that almost ANYTHING is better than a debt based currency that can NOT hold its value when the revenue to support it is dwindling fast.
Real estate as a ROOF over your head is the ONLY RE worth considering.
If you want to have rental income, buy a REIT that you can sell for a seven buck commish ANY TIME YOU WANT OUT.
Do the numbers. The risk of damage, loss of rent, hyper-protection for deadbeats, insurance company failure, etc is far too great except if you ....think..... you can leverage your way into an income stream that will outrun the collapse (YES COLLAPSE) that is on its way.
NO ONE (and I've challenged every financial forum I post on) NO ONE can identify a sustainable ....ENGINE OF RECOVERY.... for a jobless, undereducated, spoiled, dependent society.
We are already broke.
Asia has eaten our lunch with the blessings of Wall Street and a short sighted paid for government. We voted. So did the deadbeats. They won.
Violence will follow. People are not ready to take care of themselves. They will botch it bigtime.
Say goodbye to America. We had our shot and muffed it.
<< <i>
<< <i>i think will see when this quanative easing stops. we shall see. jmo >>
John,
the problem is........ QE might not have an end game. A scary thought.
QE is devaluing the dollar to be sure...at least it looks that way to me.....how far is the dollar overvalued??
QE is only postponing the inevitable.
Really, a more plausible solution is to turn the young turks loose in this country and start creating wealth like we used to do. WE are the most resourceful when our backs are up against the wall with no exceptions on a scale of 300 million people. Our Capital, resources, labor and ingenuity have never been equalled in the history of mankind. The Egyptians, early Persians, the Romans and Germany post Weimar represent only a small fraction of what we have accomplished. >>
The "ingenuity" we HAD is gone. We've relied on a military and military alone for the past 40 years.
WHAT capital? Who's lending? The banks were saved with a cash infusion and they ain't lettin go of it.
Labor? WHAT labor? No one will stoop to turn a wrench. Don't matter anyhow because all are metric.
We have been equalled and soundly thrashed by CHEAP labor and technology has eclipsed ingenuity by leaps and bounds.
If we DO think up something new, our BUDDIES will copy it and we will bless them because we RELY on them to finance our waste.
Nope. We is done.
<< <i>If anybody is really believes that we are on the edge of Great DepressionII stay short the stock market in some manner. MJ >>
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Too dangerous.
That is the point Yastrow was making.
The banksters have to put their free QE-money someplace. Until an
alt arises, SHORTs will mostly lose money.
If we decide there is a "depression" only when GS and JPM go broke,
we will all likely be dead first.
The measurement has to be of the peasantine economy. From my own
personal observations, we have been in a "depression" since 2009 and
it is ONLY getting MUCH worse.
The ordinary folks - not members of the political/unionist classes - have
not benefited at all from QE. In fact, they have lost most of what they had
BECAUSE of QE and other bailouts to the favored classes.
Regulated and engineered economies ALWAYS fail. A manipulated stock
market is the last place that will warn us of such a pending failure.
If it takes 70 hours a week at my age...well... as Keith said.....if it doesn't kill you it makes you stronger. Was mich nicht umbringt, macht mich stärker
TOPSTUF, I'm sad that you feel the way that you do. I look at it differently but we will need a little 'mixin it up' to get it right again. I'll accept that challange.
<< <i>Sign outside today in Orange County when I drove by this morning at 0500 Dark, DMV CLOSED due to budget cuts---only problem is---DMV produces revenue >>
But do they make a profit? There is a huge difference between revenues and profit.
<< <i>I ain't givin up yet
TOPSTUF, I'm sad that you feel the way that you do. I look at it differently but we will need a little 'mixin it up' to get it right again. I'll accept that challange. >>
Me too. I've been on Investor Village since its inception TRYING to get the boobs to see that gold is the ONLY asset that will survive.
A ....few.... have capitulated and wish now they had listened back when I was touting at 400.
But NONE have proposed ANYTHING other than the trite platitudes of US superiority in ingenuity, new technology, etc etc ad infinitum
Collapse is the future. It's rising again as we speak.
Glad I'm old.
<< <i>
<< <i>Sign outside today in Orange County when I drove by this morning at 0500 Dark, DMV CLOSED due to budget cuts---only problem is---DMV produces revenue >>
But do they make a profit? There is a huge difference between revenues and profit. >>
Do they make a profit? Holy smokes my man. Have you ever seen how much revenue registration and titling of cars makes for the state of CAL? it's a cash cow.
The GOVT doesn't cut back on the freebies for the neanderthals in this state. They just squeeze the revenue producers. Read Victor Davis Hansen --the Mexicanization of California.... if you want to see how the game is played.
AND THIS IS THE LAST TIME I EVER RESPOND TO SOMEBODY ON THIS FORUM WHO HAS BEEN AROUND FOR 7 YEARS AND DOESN'T HAVE A PROFILE. What's up with that?
And I'm sick of hearing...'it's over'...............cause it ain't.
It's only over for the people who can't create value for the marketplace. 'The I give ups'