The Golden Truth: Housing: From The Trenches In Arizona

Wednesday, February 19, 2014

Housing: From The Trenches In Arizona

"I live in ground zero of the real estate bubble in Arizona and my wife is a real estate agent. She works with a flipper and none of their properties are moving, not even getting offers. With winter snowbirds here this is the strongest time of the year for real estate and nothing is moving. Her investors have been dumping their prices and are starting to panic. "Just get rid of it" is becoming the mantra. The MLS listings have been increasing every month for three months and sales are declining. I think its about to shit the bed again." - from a comment posted on today's earlier post.

6 comments:

AnonymousWednesday, 19 February, 2014
LMAO... Housing Bubble, The Sequel!
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AnonymousWednesday, 19 February, 2014
An example of the disconnect these people have with reality. A bigwig in my wife local realty association actually said this as a sales pitch "now is a good time to buy because the stock market is to risky and going to crash again and all that money will go to the safety of real estate" I didn't know whether to laugh or to cry when she told me that!
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AnonymousThursday, 20 February, 2014
The world's largest retailer, Wal-Mart, has reported a 22% drop in quarterly profit and given a weaker-than-expected earnings forecast for the coming year.

Net income for the three months to 31 January fell to $4.4bn (£2.6bn) from $5.6bn a year earlier.

Wal-Mart said tough winter weather, cuts to government benefits and higher taxes contributed to the fall.

Wal-Mart said reduced food-stamp benefits had been partly behind its lower profits, along with competition from heavy discounting during the holiday season.

http://www.bbc.co.uk/news/business-26274055
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.