The Perfect Storm of an Economic Meltdown

[RLLD 4,275]

Rink

 

``The combination of rising delinquencies, higher foreclosures, more housing inventories, increasing interest rates on many mortgages and greatly reduced availability of mortgages due to limited liquidity is creating what we call a near-perfect storm for housing,'' he said.

 

``It now appears that housing and capital market corrections will be worse and longer lasting than even we expected,'' Killinger said.

 

[kutulu 1,714]

word.

[BLS 315]

Welcome to the wonderful world of the Federal Reserve and Fiat Money.

 

It's not wonder our economic situation is so bad.

It's a bigger wonder how we lasted this long.

[RLLD 4,275]

Welcome to the wonderful world of the Federal Reserve and Fiat Money.

 

It's not wonder our economic situation is so bad.

It's a bigger wonder how we lasted this long.

 

Historically, look at the removal of housing figures from the CPI in 1983; then look at Greenspans manipulation of credit which was hidden by this factor.

 

What you then get is people who take advantage and greed overwhlems ethical conduct...

 

The widening gap in all but a handful of the nation's 500 largest cities helped make the recent boom in housing prices unsustainable, according to analysts. The rising prices were fueled largely by low interest rates and risky borrowing, rather than increasing incomes.

 

"We had an artificial economy," said Brad Geisen, founder of Foreclosure.com, a Web site that lists foreclosure properties. "There was all this wealth created in real estate, and it wasn't really created."

[BLS 315]

Historically, look at the removal of housing figures from the CPI in 1983; then look at Greenspans manipulation of credit which was hidden by this factor.

 

What you then get is people who take advantage and greed overwhlems ethical conduct...

 

 

Shocking....

 

But what amazes me is not only my previous lack of knowledge on the Fed and Fiat money, but so many people know NOTHING about it.

We are all getting screwed daily by this and nobody knows it.

[Know Doubt 0]

Yes, but my question is:

 

What is the 'smart move' to do with our liquid resources(cash)?

Getting 4.0% is nice in the bank but if and when we 'crash', you could possibly make a killing buying English Pounds or Euros.

 

However is now 'the time' to buy the English Pound or Euros as they are at all time highs for the past 10-15 years...

 

 

 

 

OR

 

 

 

 

Is the Do$$ar gonna get even worse vs. those currencies...???

 

And that may make it worth it.

 

 

 

[RLLD 4,275]

Yes, but my question is:

 

What is the 'smart move' to do with our liquid resources(cash)?

Getting 4.0% is nice in the bank but if and when we 'crash', you could possibly make a killing buying English Pounds or Euros.

 

However is now 'the time' to buy the English Pound or Euros as they are at all time highs for the past 10-15 years...

OR

Is the Do$$ar gonna get even worse vs. those currencies...???

 

And that may make it worth it.

 

The answer is tough to quantify. IMHO the only safe place is going to be 10-treasuries......

 

The stock market is going to be thrashed in the coming 12-16 months, credit will tighten, consumer confidence and employment will be hurting.

 

If Bernanke drops the rate a half a point ina fe days, which many think he will, the dollar is going to take a hit. Buying up foreign currency only works if you can by gobs of it.

 

If you are young I say just ride it out, cut down on credit debt, try to reserve capital, keep investing as it will come back, but it might take ten years....

 

If you own a house, it might correct to its actual value or less. You might be looking at 5%, or you might be looking at 60%, it all depends on where you live. Selling your home will become a big problem unless you live in an area where baby boomers want to flock to as they sell of their homes for whatever they can get.

 

Investing in operations support those 55+ communities might be a safe bet.

[Know Doubt 0]

The answer is tough to quantify. IMHO the only safe place is going to be 10-treasuries......

 

The stock market is going to be thrashed in the coming 12-16 months, credit will tighten, consumer confidence and employment will be hurting.

 

If Bernanke drops the rate a half a point ina fe days, which many think he will, the dollar is going to take a hit. Buying up foreign currency only works if you can by gobs of it.

 

If you are young I say just ride it out, cut down on credit debt, try to reserve capital, keep investing as it will come back, but it might take ten years....

 

If you own a house, it might correct to its actual value or less. You might be looking at 5%, or you might be looking at 60%, it all depends on where you live. Selling your home will become a big problem unless you live in an area where baby boomers want to flock to as they sell of their homes for whatever they can get.

 

Investing in operations support those 55+ communities might be a safe bet.

 

 

 

By 'gobs of money' do you mean around 40k and higher?

 

We have that sitting in an account getting 4%.

 

Over here in England I checked with the banks and can get 6% for a year CD of around 10k English Pounds and up.

Plus being here in the UK makes it easier to buy pounds. However our bank here is exchanging at $2.08 for each Pound.

I held off on changing a chunk of our $$$ today, hoping that the 11 billion in credit that Nationwide got( I think it was Nationwide) , can help rally the market for say next week or so and then I'll buy the Pounds and plunk them down on the CD.

We then have to pay The Queen 17% of that 6% yearly but none to the USA.

 

 

We have also thought about buying land somewhere around my hometown(Tucson, AZ... GFIAFP!!!) because we couldn't stand being landlord to loser tennants, which we tried for 4+ years. Thats why we have the $$$, we sold the house.

After we pay Uncle Sam, we should have about 55-60k left over.

We have no debt as I cashed out my Retirement and paid off school loans and the car we have here.

 

We do want to start an IRA and transfer my wife's(34C) Retirement from her previous job before moving here.

ROTHs are still a good deal, right?

 

We will keep saving money with the $$$ made monthly here but want to know the best way how.

Keep buying Pounds?

Buy Land in AZ?

Keep 'diverseified' and start a 401k along with the ROTH?

 

 

TIA

 

 

If ya find your way over the pond, I'll buy ya a pint.

 

 

[Know Doubt 0]

:bump:

 

 

 

 

tia

[RLLD 4,275]

By 'gobs of money' do you mean around 40k and higher?

 

We have that sitting in an account getting 4%.

 

Over here in England I checked with the banks and can get 6% for a year CD of around 10k English Pounds and up.

Plus being here in the UK makes it easier to buy pounds. However our bank here is exchanging at $2.08 for each Pound.

I held off on changing a chunk of our $$$ today, hoping that the 11 billion in credit that Nationwide got( I think it was Nationwide) , can help rally the market for say next week or so and then I'll buy the Pounds and plunk them down on the CD.

We then have to pay The Queen 17% of that 6% yearly but none to the USA.

We have also thought about buying land somewhere around my hometown(Tucson, AZ... GFIAFP!!!) because we couldn't stand being landlord to loser tennants, which we tried for 4+ years. Thats why we have the $$$, we sold the house.

After we pay Uncle Sam, we should have about 55-60k left over.

We have no debt as I cashed out my Retirement and paid off school loans and the car we have here.

 

We do want to start an IRA and transfer my wife's(34C) Retirement from her previous job before moving here.

ROTHs are still a good deal, right?

 

We will keep saving money with the $$$ made monthly here but want to know the best way how.

Keep buying Pounds?

Buy Land in AZ?

Keep 'diverseified' and start a 401k along with the ROTH?

TIA

If ya find your way over the pond, I'll buy ya a pint.

 

 

Well, that is a ton of stuff to think about, not sure I would be the best resource to answer all of this with the additional considerations.

 

For me this subject was a thesis to be researched and proven, and along the way I learned a great deal about how government intervention in the free market can be deadly.

 

I would advise that you seek a personal financial advisor, there are a bunch of them out there. I sail with one who typically works only with the very wealthy, but he might be willing to help you out.