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alstry (35.40)

Alstrynomics WARNED you...

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January 10, 2009 – Comments (11)

It gave you over a years notice to get your house in order.

Pay off debt.  Raise cash.  Prepare for the shutting down of America.  Public acknowledgement of the DEPRESSION is just about here.  Remember, the generally accepted definition of a depression is a 10% drop in GDP from peak to trough.  Right now many industries are already in a depression....

Autos

Airlines

Banking

Construction

Commercial Real Estate

Housing

Manufacturing

Retail

Restaurants

Technology

Now the visible decline will really start be felt has government cut backs start gutting general GDP.  Yesterday, California effectively cut wages of ALL state employees by 10%.  How many of those employees do you think were saving 10% prior to the wage cut????

California is the 8th largest economy in the world.

We are already at 13.5% reported UN/Underemployment.  Forcloseures are skyrocketing and homeprices are crashing.  Jobs are being cut by the thousands everyday.  Boeing just announced another 4500.  There are at least 10 supplier jobs for every Boeing job...you can do the math.

I live in a neighborhood where the property taxes range from about $10K per year to about $50K for the larger homes.  I am aware of some situations where the owners, who have NO MORTGAGE on their homes are having difficulty simply paying property taxes, insurance, utilities and maintenance. 

Others, can no longer afford health insurance.

How are the states going to be able to pay employees if fewer and fewer can pay property taxes???

And we are still at the beginning of the process.  I hope you grabbed your surfboard, a good bottle of tequila, and some good cigars......and get ready......it will be a big one....COWABUNGA!!!!

Remember Alstrynomics is the practical application of economics and politcial science.  It is looking better and better that Alstry will be the highest scoring CAPS player for a one year periord on the one year aniversary of Alstry's first CAP's pick.

That might be a good day for Alstry to quit CAPs.

Never fear....PREPARE!!!!!!!!

11 Comments – Post Your Own

#1) On January 10, 2009 at 1:35 PM, dwot (44.44) wrote:

Interesting...

One of my predictions has been that those with property would be over burdened with property taxes and it seems that is already the case in California.

You need good retirement income to support what you've just said.

I was in my dream home when I sold it a year ago.  It actually was too much home, but I still had hopes of having a family when I moved into it.  

The economy ended up being much tougher then we expected.  The cuts to education were huge and had I any idea that was coming I'd have never gone into education.  It almost destroyed my economic future.  At this point I'd say the only thing that saved it was being a winner in the housing bubble.

Additionally, my husband was also hit by the economy so we saw household income go down about 20% after getting that home.  Taxes, strata, and utilities on that home were about $300/month more on that home then the previous home.  It is how a 10 year plan to be mortgage-free turned into a 20-25 year plan. I suspect the tax burden on that home will go up another couple hundred per month.  All of a sudden it seems that the carrying costs of home ownership seem about the same as renting a small apartment.

So, providing housing reasonably corrects, I do want the asset protection of home ownership relative to what the dollar might do, but I don't want to be considered a money pit to pay for everything so I will keep my housing needs modest, but comfortable.  I want home ownership to actually reduce the cost of living.  First round of home ownership did the opposite until the housing bubble and I sold.

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#2) On January 10, 2009 at 4:11 PM, kstarich (30.49) wrote:

I think that in the near future it is not speculative to say there will be some kind of major tax revolt.  Housing is tumbling yet cities are not adjusting assesed values. In june everyone gets their assement letters and I can forsee the clerks offices being inundated with calls to challenge their assesments.

Also in California residents will now get an I.O.U. from the State if they claim a State income tax return.  Yet in California you most certainly cannot pay your taxes with an I.O.U.

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#3) On January 10, 2009 at 4:37 PM, eldemonio (98.63) wrote:

It gave you over a years notice to get your house in order.

Thanks to Alstrynomics, my wife and I are almost completely debt free.  We had no idea that debt was bad until Alstrynomics showed us the light.  What a miraculous belief system!

We never knew how screwed we were until we read about Alstrynomics.  We now realize that the whole economy is screwed, and although Alstrynomics hasn't exactly showed us what to do about it, it is nice to constantly hear about how others are even more screwed than us.  Thanks again Alstrynomics!

 

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#4) On January 11, 2009 at 12:04 AM, GoodVibe4Ever (< 20) wrote:

"It is looking better and better that Alstry will be the highest scoring CAPS player for a one year periord on the one year aniversary of Alstry's first CAP's pick."

.....

Hey shooting star,

You know that your green thumbs will get your head handed to you in a silver plate and when the bears put your head back in place, it won't fit right. That I said! Unless you have an exit plan to your wrong timing, you're going to have a hard time brother seeing even the top 20. All glory to The Hypno Toad.

GoodVibe
Strength & Honor

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#5) On January 11, 2009 at 12:23 AM, alstry (35.40) wrote:

I have to give you credit....you have come out of the gate strong.

Good luck.

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#6) On January 11, 2009 at 1:59 AM, monksnake (38.87) wrote:

"We had no idea that debt was bad until Alstrynomics showed us the light."

 

Here, I'll show you some other things that are bad:  

High fat foods. 

Killing.

Stealing.

Sugar.

Being terminated at work.

 

I'll give you time to let those sink in. 

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#7) On January 11, 2009 at 2:34 AM, starbucks4ever (96.89) wrote:

"who have NO MORTGAGE on their homes are having difficulty simply paying property taxes, insurance, utilities and maintenance. "

I don't get it. Why pay insurance when you don't have mortgage? It's one thing when the bank is forcing you to...Or have they HELOCed themselves up to the eyeballs?

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#8) On January 11, 2009 at 3:02 AM, BeachExec (28.85) wrote:

Remember Alstrynomics is the practical application of economics and politcial science.

Not that I can see. From what I've seen, Alstrynomics is the application of glee to bad news, wild forecasts about the demise of America (e.g., 30% - 50% unemployment forecast), and even laughing at people who have lost their jobs or taken a pay cut.

One can't help but wonder what happens to Alstrynomics when the economy recovers faster than Alstrynomics predicts, having never sunk to the levels of despair that Alstrynomics hopes for. Where will Alstry find glee then? I guess we shall see in time...

 

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#9) On January 11, 2009 at 11:26 AM, eldemonio (98.63) wrote:

monksnake-

How dare you imply that Alstrynomics is nothing but simplistic reiterations of everything we already know about economics.  Alstrynomics is a prophetic system that lets us know we are all stupid, screwed, and live in a hopeless world.  God bless Alstrynomics for shedding the light on our miserable situation.

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#10) On January 14, 2009 at 3:15 PM, garyc27 (< 20) wrote:

It seems to me that alstry is correct.  Mr. Bernanke wants the remaining $350 billion to continue to shore up the banks.  The banks don't have much in the way of other investors, except the government.  It is very probable that the banks will continue to need more money and the amount is going to be closer to $2 Trillion.  The downturn in the rest of the economy is creating additional chaos with the bank's balance sheets.  I don't think we'll see banking on any solid footing until late 2010 or 2011 at the earliest.  We are definitely on a very steep downward slide.

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#11) On January 16, 2009 at 2:00 PM, tfirst (28.98) wrote:

Invest in cardboard companies....that's the new housing bubble.

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