USA Real Estate Values Teetering on the Edge

Don't be a victim of Obama's inept, even insane, real estate policies and other macroeconomic policy follies. (Don't be fooled by Bernanke's either.) Today was perfect timing for Obama: early on Sunday morning. We find ourselves early in the college football season and the pennant races in baseball are starting to heat up. The midterm elections having people once again lost in Wonderland as they imagine the glories of putting Republicans back in control of Congress, salted with a few "Tea Party" candidates. What a vain hope! Yet most people are distracted. The timing is good.

Look very carefully guys at what happened in Germany to real estate values after its post WW1 hyperinflation. Look at what happened to them in the USA after FDR's New Deal policies took hold. Look at the value of buildings in the Bronx in the aftermath of stupid economic policies in the mid 20th century. Check out Oil City, Pennsylvania for yet another example of real estate demise (Rockefeller’s gem in the late 19^th and early 20^th centuries). History shows that real estate does not necessarily hold its value. Plenty of ghost towns still exist out west where there was once thriving economic activity. Land is not like gold in being a good store of value throughout the ages.

Just a friend talking here. Take my advice for what it s worth. And it may be worth a lot.

Even after prices readjust for inflation you could still be really screwed over. The depression could be so bad and incomes so low that people, now unemployed or with reduced real incomes, will not have money to buy real property. The supply of land and houses will be huge but demand will be low. Under that scenario, market prices will plunge. Land and homes will be bought for the back taxes. This may happen soon. Please think about it. Do you really think that this scenario is neither improbable nor implausible?

Suggestion: sell all your property for what you can now. Sell it for one-half of what you had hoped for if that is all you can get. Half is better than 10%, or 1%. Get a reverse mortgage. Even though finding a willing bank will now become increasingly more difficult in light of Obama's folly, put all the debt you can on your real estate to get the cash out of it (and convert it to gold), especially if it is not your primary residence (or land you plan to do subsistence farming on) and you have plans to "hold your ground", "fight until the end", "wait and see what happens", "hunker down", or just prepare for the New World Order using a sophisticated agrarian survival plan, etc.

Remember that those jets flying south only have so many seats on them, and during a full-blown crises they will be full. Like people trying to escape so many other times in history, you may be offering your real property deed in exchange for airfare out. Do you have an escape plan in place? Do you even have a passport?

This is not a good time to “wait” for your price. The government is about to destroy people’s lives and institute a Brave New World right before your eyes. But they cannot change or escape the market forces of supply and demand. Historically, the vast majority of people have been lulled into a false sense of security, or paralyzed in the face of impending disaster. Don't let that be you. Act while you still can.