The American Economy totally doomed?
[Note: Hoboken411 will continue offering an alternative point of view to the mainstream broadcasters and businesses who insist the economic recovery is "real." I'd be happy to publish your point of view - IF it makes sense.]
Delusional to believe we’re on the road to recovery?
The other day, I found an email in my spam folder from Toll Brothers – who proudly announced that they finally sold some of those “townhomes” on the ground-level waterfront side of Maxwell Place, claiming they were in “high demand” and that prices were actually increasing.
The first line in their press release was: “As Wall Street continues to steady, and bankers are confidently returning as buyers to the luxury real estate market…”
Everything I’ve seen about the global economy, socialist programs failing, and ever-expanding government and bailouts made me wonder who actually wrote that release!
Regardless, several 411 readers sent this latest link in from the Economic Collapse Blog – which details “25 questions to ask anyone delusional enough to believe this economic recovery is real…”
A couple I found noteworthy were:
- #4) How can the U.S. real estate market be considered healthy when, for the first time in modern history, banks own a greater share of residential housing net worth in the United States than all individual Americans put together?
- #16) Both Fannie Mae and Freddie Mac recently told the U.S. government that they are going to need even more bailout money. So what does it say about the U.S. economy when the two “pillars” of the U.S. mortgage industry are government-backed financial black holes that the U.S. government has to relentlessly pour money into?
- #21) The bottom 40 percent of those living in the United States now collectively own less than 1 percent of the nation’s wealth. So is Barack Obama’s mantra that “what is good for Wall Street is good for Main Street” actually true?
You can read the rest here. But the pressing question is – is real estate really an answer? Gold? Leaving the country?
SEE MANY PREVIOUS “ECONOMIC” UPDATES AFTER THE JUMP…
False sense of reality propagated by TV Networks?
I don’t have to detail the number of TV networks that say one thing or another here. Because many financial “speculators” think that the media plays a huge role in influencing how the market reacts – one way or another.
However, many Hoboken411 readers have sent in links from this website called ZeroHedge.com – with practically every person saying that this site is the one you need to read to get “the truth” about what’s transpiring behind the scenes, saying today’s stock market isn’t “even remotely resembling orderly, efficient or fair.”
Some of the links recently sent were:
One of the contributors of ZeroHedge.com even suggests taking all your money out of the market!
People are nervous – should they be?
There’s all sorts of fidgety people in the financial world at the moment, wondering what the global market is going to do this week. Hype? Real worry? Doom? Or big profits to be made if you play your cards right?
“Sense of entitlement” – “Elegant form of theft”
The global economic system is complex, and not easy to understand by most regular people. It’s so complex, hectic and mismanaged – that practices which caused the recent financial crisis of the past few years – happen before anyone can prevent them. Of course, some people like Peter Schiff and Ron Paul have been waving warning flags for years – but no one listens.
There was a great piece that ran on 60 Minutes recently – where Steve Kroft interviewed Michael Lewis – Author of the book The Big Short: Inside the Doomsday Machine, where he simply explains why we collapsed, and how some people got rich betting against the market. Fascinating.
SEE ORIGINAL POST (AND 60 MINUTES PART 2) BELOW…
(Economic Meltdown, continued…)
60 Minutes Part 2
Here’s the last 10 minutes of the interview with Michael Lewis.
Also – how Lehman Brothers lied and stole.. horrible
ORIGINAL UPDATE BELOW…
If you want to be scared – then you ought to read this article at The Economic Collapse Blog, which details 20 reasons why we’re in an Economic Black Hole, and will simply not recover. I picked two of the 20 that I’m particularly nervous about…
Note to doubters: Feel any of those statistics or statements are inaccurate? Please explain why.
The U.S. Economy is dying
“Even though the U.S. financial system nearly experienced a total meltdown in late 2008, the truth is that most Americans simply have no idea what is happening to the U.S. economy. Most people seem to think that the nasty little recession that we have just been through is almost over and that we will be experiencing another time of economic growth and prosperity very shortly. But this time around that is not the case. The reality is that we are being sucked into an economic black hole from which the U.S. economy will never fully recover.
The problem is debt. Collectively, the U.S. government, the state governments, corporate America and American consumers have accumulated the biggest mountain of debt in the history of the world.
Our massive debt binge has financed our tremendous growth and prosperity over the last couple of decades, but now the day of reckoning is here.
And it is going to be painful.”
Number One: Real Estate Bubble
Do you remember that massive wave of subprime mortgages that defaulted in 2007 and 2008 and caused the biggest financial crisis since the Great Depression?
Well, the “second wave” of mortgage defaults is on the way and there is simply no way that we are going to be able to avoid it. A huge mountain of mortgages is going to reset starting in 2010, and once those mortgage payments go up there are once again going to be millons of people who simply cannot pay their mortgages. The chart below reveals just how bad the second wave of adjustable rate mortgages is likely to be over the next several years….
Number Nineteen: Devalued Money
The reckless expansion of the money supply by the U.S. government and the Federal Reserve is going to end up destroying the U.S. dollar and the value of the remaining collective net worth of all Americans. The more dollars there are, the less each individual dollar is worth. In essence, inflation is like a hidden tax on each dollar that you own. When they flood the economy with money, the value of the money you have in your bank accounts goes down. The chart below shows the growth of the U.S. money supply. Pay particular attention to the very end of the chart which shows what has been happening lately. What do you think this is going to do to the value of the U.S. dollar?…
Can anyone suggest a STABLE country to move to? New Zealand? Antarctica?