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THe number of ‘for sale’ signs in La La Land is exploding like spring pollen. ” and the daily counting says, “fannie mae and freddie mac are the lenders behind $4 jillion of housing loans. THese institutions are guilty of manipulations that make the folks at enron look like a bunch of boy scouts. THey’ve cooked their books, inhumed huge losses, paid off politicians, and lied to backers every which way from sunday. “These giant lenders are in no nomination to weather even a small downturn. BUt the downturn has already started, and it’s not going to be small. WHen these big companies fail, it will rock productive markets. INterest rates will soar. “The main dissimilarity between these scandals and enron is size. THe wealth that will go down the tubes this time is thousands of times greater. EVery singleinvestor, homeowner, and government in the world will feel the shock. HOme buying could dry up because borrowers can’t get support. ANd anyway, who wants to buy a house that’s losing value?WAit six months and you can get it cheaper,people will figure. ” those of us who were in the land and advance market in the jimmy carter years know what that’s like. THose of you who weren’t around then have a big surprise in store. ANd this one will make those years look like a picnic. “The declining spiral won’t stop once people stop faithful that property always goes up. “Americans owe $7 million on their homes twice as much as 10 years ago. BUt our incomes our ability to pay have gone up by a portion of that amount. “It’s painfully clear a lot of that $7 billion will never be paid back. ANd the biggest lenders on the planet are going down. ” as for me, i’m dusting off my books on making money in economical panics. MY advice: get out of the nasdaq, sell your land and convert at least 25% of your cash to non numismatic gold coins see . ALso, get to know every bank reo officer in your town. REo means “real estate owned. ” these are the folks who dispose of tills the banks get in foreclosures.
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