I sure do miss Warren (not B but Z). He had a very twisted way with lyrics. But however you rhyme the end game it scares the bejesus out of me. When I stated that it was synonymous with dancing on a grave. Who in their right mind wants that existence? How many can last in a world of Mad Max? Better route for BB and the Fed than Clamity Jane. (Igor’s word)

Yes, buy gold, guns and head for the hills makes sense and if that doesn’t cut it…Dad, send Lawyers, Guns and Money..the s**t (slight edit-T) has hit the fan

Sounds like good advice/upbringing your folks gave you. My parent just had 6 kids so my upbringing was like a depression, but in a good way. I paid for my college and grad school but managed to not have any debt. I hope to give thta to my kids as well.

Yes most definately cash on hand too!

My parents lived throught the great “D”. Credit was a fools game to them. You watch they’d say after I came home from a friend’s house and bragged about their things. They’ll be in the poorhouse soon enough my Dad would opine. Did’nt happen then of course but most of those kids needed college loans when it came time. I was fortunate for the free ride but had to go to state school. So what, still a credible education. And I started adult life out of debt! Same with my boy. That’s our offer.

Very important lessons. It’s called “Where with All”. Not many middle class folks have that anymore. I guess that’s a sign they ain’t middle class no more.

Great list. May I add to #2 by saying “save as much as you can, and don’t stop, no matter what the neighbors do”. Also, don’t forget to stuff some in the mattress, just in case.

It’s not about sado-masochism. We are facing a plague, a pestilence of our own making. The plagues of the middle ages did not discriminate between rich or poor. That may be the difference this time. How to inoculate one’s self from the situation. My prescription:

1. Get out of debt and stay there.
2. Build some savings and diversify conservatively.
3. Keep your day job as long as you can.
4. Avoid buying real estate until the true bottom.
5. If all else fails buy glod, guns and head for the hills.

“” How sado-masochistic are you, reader?”"

That’s a rather personal question, isn’t it?

I read or watched something recently that indicated that Alt-A products were twice as likely to be stated income versus subprime, be twice as high as a loan versus subprime, and there is approximately 5 times as many Alt-A mortgages versus subprime.

Those statistics scare me since having good credit does not guarantee payment, especially, when one does not have any risk (100% financing) and is holding a depreciating asset. Add in zero assets and I think going back to the bank is almost a guarantee.

Back in 2004, I was looking around an AJ’s store in the Catalina Foothills north of Tucson. The store was quite busy, and people were buying things. Including AJ’s $8.00/lb. granola.

Gee, I guess I could stop paying my mortgage and live for free…What a Countree!

The New Homestead Act of 2015 -

The Congress will pass sweeping legislation to allow homeless families to stake a claim on housing stock the Federal Government assumed as collateral during the financial bail out of 2008-2010. Since then these structures have languished on the market and deteriorated in condition. As such any person with legitimate family shelter needs will be allowed to choose the vacant home of their choice. Limit 1 home per family with $1 down. First come first served. Family must agree to live in such home, repair and renovate at no extra cost to the government and not sell, rent or lease said home for a period of 5 years after move in. Failure to abide by these requirements will result in forfeiture, fines and possible military service in our mideast engagements. After 5 years the homesteader my apply for an ownership deed from the Government subject to verification. Etc.

The other alternative is to plow them under like crops during the Depression. Moral hazard no doubt but a substantial chunk of the vacant housing stock may never sell and will deteriorate. Wages will not keep up with inflation in years to come. Many more people will not be able to afford home ownership.

Will Floplords be willing to take on this many homes as an investment and rent them out. Not if home values are not appreciating. How many will invest in a decrepit property, fix it up to attact renters without seeing rising equity and the ability to flip it in a year or 2? Not many investors have that kind of staying power. Plus all the hassles of being a landlord … You must pay the rent … but I can’t pay the rent. On and on. There will be a bottom but it could last a long time.

Vacancies will NOT decline until economic activity increases.

1. Economic activity will continue to decline until housing prices increase;

2. Housing prices will continue to decrease until vacancies decline;

3. Vacancies will decline until economic activity increases.

There you have it. Single, sole, only, inevitable remedy?

BAN HOUSING EVICTIONS NOW.

It doesn’t matter whether you oppose it or support it. Sooner or later, as I have said all along, there will be a ban on housing evictions. It all depends on how sado-masochistic Americans are. How sado-masochistic are you, reader?

Zell is harsh. He’s also right. We need to clean out the folks who can’t afford the properties as quickly as possible. Quite dragging it out. It only delays healing.