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The Coming Collapse of the Real Estate Market

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October 15, 2010 – Comments (6)


"The mortgage market is completely dependent on government guarantees and quasi-Government purchases of securitized mortgages. If the mortgage market were truly socialized, then the Central State would own the banks which originate, service and own the mortgages.

But then the private owners and managers of the "too big to fail" banks would not be reaping hundreds of billions in profits and bonuses. And since the banking industry has effectively captured the processes of governance (that is, Congress and the various regulatory agencies), then what we have is a system of private ownership of the revenue and profits generated by the mortgage industry and public absorption of the risks and losses. "

 Charles Smith Hughes

The rest is here:  - http://www.oftwominds.com/blogoct10/foreclosure-collapse10-10.html?source=patrick.net

6 Comments – Post Your Own

#1) On October 15, 2010 at 9:48 PM, loverandfighter8 (< 20) wrote:

Priced in dollars there's probably not a lot of downside left in Real Estate.  Priced in gold and silver however, it will absolutely crash during this decade.  In my opinion, Real Estate in this country will only be attractive when the average home costs less than 1,000 ounces of silver.

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#2) On October 15, 2010 at 11:56 PM, FleaBagger (29.31) wrote:

So, what else is new?

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#3) On October 16, 2010 at 3:17 PM, fewl10 (< 20) wrote:

1,000 ounces of silver = 62 lbs of silver?

So you think a house is going to be worth just 60 lbs of silver? 

You are on crack.

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#4) On October 16, 2010 at 11:49 PM, BillyTG (29.20) wrote:

@fewl10,

In the worst real estate markets in the country like parts of Michigan, Las Vegas, etc, you can find single family homes (2-3Bedroom, 1-2Bath) for $20,000-$50,000.

1,000 ounces of silver is roughly $25,000. We're already at the point where you can buy a house. 

loverandfighter8 specified that the average house will be 1,000 sounces of silver. That leaves a lot of work to be done, but I agree with his assessment.

Once again the debate almost comes down to an issue of whether or not one thinks the US economy is stable/recoverable. Those who think it is still believe that everything will be back to normal soon. Those who think we're at the beginning of a disaster believe gold and silver will be worth far, far more dollars, enough that a 1,000 ounces of silver will buy an average house. I'm in the latter category, with loverandfighter8.

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#5) On October 19, 2010 at 7:06 PM, chk999 (99.97) wrote:

1,000 troy oz of silver for the median house? No chance whatsoever.

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#6) On October 23, 2010 at 11:38 AM, blackeye101 (52.80) wrote:

Peter Schiff writes that we will have both inflation and deflation in the coming years.  Inflation in the things that we need to buy like commodities, and deflation in American's assets like housing prices.  However, even though housing prices will go down, they will actually become more expensive to own as the cost of energy, food and living expenses increase, along with interest rates.  This will result in American's becoming poorer.  The things they own go down, and they things they have to buy to life go up.  

If that happens, we can very easily get the median houses to be worth 1000 troy ounces of silver.  

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