Use access key #2 to skip to page content.

alstry (35.44)

No Jobs.....Houses WORTHLESS!!!!!

Recs

10

June 10, 2009 – Comments (9)

As you know, in addition to the millions of workers who have been fired creating the 9.4% reported unemployment rate.......there are now many tens of millions of Americans on Welfare, working part time, or not counted as unemployed because they are small business people or independent contractors.

Whether you are unemployed, underemployed, or on welfare making less than $20,000 per year.....there is not much house you can afford after living expenses....if any.

Since there are relatively few jobs in Detroit....and many on welfare.....homes routinely sell for less than $10,000......but many say that is simply Detroit...........

Not so fast.....it is now becoming a trend in practically every city in America.....it is just some are further along than others......

In parts of CALIFORNIA.......homes are now selling at 1980s pricing!!!!!!

In parts of Southern California, the housing crash has upended a basic tenet of the American dream: that home values always increase over the long term.

Properties in several areas are selling for less than they did 20 years ago, and that's not even counting the effects of inflation.

But he never imagined his neighborhood would drop off the charts. In April, a slightly larger home two doors away sold for $66,500. That's just over half the $130,000 it went for new in 1992. In 2005, that house sold for $330,000.
http://www.latimes.com/business/la-fi-cheaphomes10-2009jun10,0,4802553.story?page=1

Ask yourself, what happens to a local government that has budgeted for a tax revenue stream on a population of homes at $300k plus range and now they are only worth $100K!!!!!!!!!!

What kind of budget cuts and wage cuts do you think rests for government workers ahead????

Welcome to monetary inflation and wage deflation.........Zombulation my friends....Zombulation.

 

 

9 Comments – Post Your Own

#1) On June 10, 2009 at 8:23 AM, alstry (35.44) wrote:

BOOM!!!!!!!!  No Escaping Zombatic Fallout!!!!!!

Russia May Switch Out of U.S. Treasuries Into IMF Debt, Central Bank Says

If our currency loses reserve currency status......plus wages continue to crash in America......very few Americans will be able to fill up their cars with gas less make a mortgage payment.

Wage Deflation coupled with monetary inflation results in Zombulation!!!!!!!!!!!!!!!!!!!!

Report this comment
#2) On June 10, 2009 at 8:44 AM, alstry (35.44) wrote:

U.S. April exports drop to lowest since July '06

If you are printing money wholesale but not producing much.....nobody wants your currency and it devalues....

you could have millions of dollars in the bank.....it buys you very little in a hyperinflationary environment and many starve....

and if you own a business, the cost to produce rises much faster than you can pass on costs that most lose unsustainable and go out of business.....and if most go out of business....few have jobs unless you work for the government.

Report this comment
#3) On June 10, 2009 at 9:22 AM, ARJTurgot (60.61) wrote:

"Houses only increased in value" was bull crap created by realtors, and anyone that thought about it always knew it was false.  "They ain't makin more land" was false the first time someone built a two story, somewhere back in pre-history civilization.

The Economist was talking about overvalued real estate most of the time since at least 2005.  I'd suggest you read a few more books, since this is characteristic of most sizable crashes.  Really, all of this comes as a surprise only to the economically and financially illiterate.

Right now, I'm buying some real nice assets at real nice prices. I think the future looks great. 

Report this comment
#4) On June 10, 2009 at 9:32 AM, alstry (35.44) wrote:

How high do you think property taxes will need to go to compensate for much lower values and more and more foreclosures not paying taxes?????

My friend pays over $50K per year in property taxes....he can't give away his home even though he owns if free and clear and it is located in a relatively depressed area.

Report this comment
#5) On June 10, 2009 at 9:52 AM, jmt587 (99.88) wrote:

50k/year?  Seriously?  That must be some house.  My rent is $9k/year, and that includes everything but electricity and gas.  I feel smarter than your friend!

Report this comment
#6) On June 10, 2009 at 10:03 AM, alstry (35.44) wrote:

That is only his summer house....He has a winter and vacation home as well.

Report this comment
#7) On June 10, 2009 at 1:38 PM, jmt587 (99.88) wrote:

You are friends with John McCain?!

Report this comment
#8) On June 10, 2009 at 5:44 PM, Varchild2008 (85.27) wrote:

"Since there are relatively few jobs in Detroit....and many on welfare.....homes routinely sell for less than $10,000......but many say that is simply Detroit..........."

The trend in Detroit is also in:

1)  Hamtramck

2)  Some parts of Roseville...Some parts of Warren....Some Parts of Hamtramck...Eastpointe (East Detroit)

3)  Good Ole Flint  and Pontiac can be added

There's plenty in Michigan beyond DETROIT with homes selling for so low a price they may as well be paying YOU to move in.

Report this comment
#9) On June 11, 2009 at 10:22 AM, jmt587 (99.88) wrote:

Wo, my hometown of Eastpointe (formerly East Detroit) got a mention (if not a positive one) in CAPS.  Cool!

Report this comment

Featured Broker Partners


Advertisement