Like I said before Residential Real Estate is Falling to Free.
1. The mathmatical calculation of RESIDENTIAL real estate is - going to change. Property is free if you just pay taxes, this is going to happen in all over the US. Detroit has 80,000 empty buildings already, average home price there is $7000.
Cities View Homesteads as a Source of Income
If there are no jobs, higher taxes and the climate suxs (ie not FL, CA or HI) residential real estate is going to falling free.
Some more predictions from the Former Top Fool? Ok
2. The gambling "industry" built on home equity is going to contract massively. Las Vegas is going to have a massive amount of free real estate. Just wait. With out CA home equity Las Vegas is going on a diet. My current view is Las Vegas will be the US version of Pompeii.
3. The finance "industry" is approaching extinction.
The current U.S. financial sector has been selected to reap enormous profits off a very narrow ecology of speculation, credit, risk and leverage. That parasitic specialization makes it highly vulnerable to extinction.
aligned with Natural Selection, Finance and Extinction
"The underlying reality is that the financial sector of the economy has got to shrink. It ballooned from about five percent of the US economy to about 22 percent over the last two decades -- mainly as a way to compensate for our declining real productive activity as we off-shored and outsourced and disassembled US industrial capacity. Capitalism only works when it operates in the service of productive activity. Trading mere paper certificates (or digital simulacra of them) in ever more "innovative" (i.e. abstract and incomprehensible) ways is not a substitute for making goods. These practices reached such a grotesque level of unreality that they eventually poisoned what remained of our economic prospects. Now that their operations have been revealed as perfidious, these institutions have to be sliced and diced and, in some cases, punished, perhaps with extinction. It will happen anyway. The only question is whether civilian leadership can guide the process within the rule of law. In the meantime, the derivatives rackets that made up so much of the fraud -- especially the trillions of dollars vested in credit default swaps contracts -- are ticking out there like bombs placed by madmen, and may bring down the entire global money system before an orderly downsizing of finance can occur. "
4. Warren Buffett well thought of now, will become hated as all the fraud, asset stripping etc... from Wall Street and DC become more apparent to the masses.
5. Most Keyensians like most communists are going to disappear from public discussion / view.
6. The stock market is going to get cut in half, eventually. Double digit dividends and single digit P/Es is what the bottom looks like.
7. Better then average chance, the Market will rally or stay up unit the Congressional election. aligned: http://www.oftwominds.com/blogjuly10/stocks-election07-10.html
8. The residential and commercial real estate market is going to fall harder and harder (except farm land), again think near free in metropolitian areas, just maintain the property and pay the incredibile taxes.
9. If China stops buying Treasuries, Social Security and medicare are toast.
10. Gold and silver. When the all those realtors offices (ie Century 21, Remax, etc) become gold vendors and WalMart sells gold coins and bars, that is near the top for gold and silver.
11. Third party victory in 2012. Obama will not get the nomination unless he does a debt jublee. Jim Webb will beat Hillary Clinton to run as the Democratic cannidate.
12. It is a depression. It maybe like this for decade.
13. A professional economist will have the same professionial esteem as an astrologist or craniologist or Vodoo doctor. If you are studying this at college, stop wasting your time. Read Econ as a hobby, major in something useful.
"The development of a profession of economists is an offshoot of interventionism. The professional economist is the specialist who is instrumental in designing various measures of government interference with business."
- Ludwig von Mises, Human Action
14. Soccer Moms will become Preppers. Your smart neighbors will get gardens and chickens. You should become their friends.