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alstry (35.88)

Homes Will Have No Value In The Digital Age

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September 03, 2010 – Comments (5)

As cash strapped states keep needing to raise more and more money to meet rising burdens....they will be forced to raise property taxes to levels never seen before.  In my neighborhood, property taxes are routinely $10-$20K before you get to maintenance and insurance.  So if you own the home free and clear, the cost of your home can easily be $1K to $2K per month.

Going forward, just meeting taxes, utilities, maintanence and insurance will be a stretch for many and impossible for millions.....as millions are losing jobs each month and fixed income checks no longer meet monthly basic needs, less rising housing costs. 

Take a look at the rust belt or Florida for great examples.....the rust belt for jobs and Florida where many retired people are being forced to liquidate homes they own free and clear simply to eat and buy medicine.

Now with Pension Plans getting evicerated with Benny the B's Zombulation policies and ZIRP interest rates.....the problem is accelerating and about to mushroom.

We are becoming a nation of retired people and unemployed......against a backdrop of a shrinking employment base.......a shrinking population can only support a growing population for so long.......and when you are being outsourced and Zombulated at the same time.....it is a recipie for disaster for anyone that thinks conventionally and uses history as a guide to the future.

America has about $55 trillion dollars of debt today....in 2000 it was about $20 trillion........and in 1980 it was about $5 trillion and even less before that.  Never have we as a nation accumulated so much debt simply to maintain the illusion of prosperity.  We must lend ten times more money today than we did in 1980 simply to service interest....couple that with massively larger government burdens and the math is interesting to say the least.

It is very funny how people still think about themselves when the system or game they are playing is coming to an end....Madoff did it, Petters did it and many others as well......they just couldn't help it. .....and in the end, it was not the end of the world, just the end of the game.......and a new one formed.....just like new games have formed throughout history.

We have had slavery, monarchies, dictatorships, fascism, communism, capitalism, socialism and many more....it is so strange with such a vibrant and changing history, people think that our system can't change.......

Systems always change.....they must to adapt to the times......this system is falling apart.....our states are bankrupt, counties are bankrupt, cities are bankrupt, pensions are bankrupt, schools are bankrupt but for borrowing and spending, hospitals running out of money, commerical vacancies skyrocketing, and jobs evaporating.....and all this WHILE the federal government is running a massive deficit.  It was NEVER this bad in the Great Depression and we never borrowed this kind of money.

The system is broken my friends....and a new system will form....now the only question is how and what......as people look forward to prosperity in this system into 2011?

Strange how when one has a hammer.....the world is always a nail.........until a nail gun is invented.

5 Comments – Post Your Own

#1) On September 03, 2010 at 10:02 AM, JerseyShoreGirl (< 20) wrote:

do you think it is wise not to buy in this mkt? 

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#2) On September 03, 2010 at 10:37 AM, carcassgrinder1 (< 20) wrote:

according to my home value....we are very close to the Digital Age....

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#3) On September 03, 2010 at 1:13 PM, alstry (35.88) wrote:

I sold my house three years ago....I am living a few blocks from where I used to.....basically, my rent today is a little more than what my property taxes and insurance would be.....

and great neighbors too....

 

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#4) On September 03, 2010 at 2:57 PM, JerseyShoreGirl (< 20) wrote:

same here, alstry .. we sold in March of '07, thanks to the housing blog patrick.net .. and our rent is definitely cheaper than mort, ins, taxes .. and so much less stressful because there are no surprises .. we're in the best school district too .. home ownership ins't the "American Dream" in the digital age ....

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#5) On September 03, 2010 at 4:43 PM, tomatoflu (< 20) wrote:

Having a 10 quadrillion dollar debt in the digital age would qualify you as one of the worlds richest people.

How much a house is worth will be measured in liability, that is compounding daily. Houses do not exist with a positive value in the digital age.

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