No Country For Old Men
A Naybob or realty responded to one of my property queries...
"I just talked with the agent at the listing office and he tells me that it is already in escrow. Sorry."
My nattering response follows...
Don't be sorry, I'm not worried, many will bleed to death catching these falling knives.
In the next several years, there will be much much more inventory to pick from at lower prices and in better locations.
Many of my people are now pulling out of equities and some are even pulling out of commodities (oil, gold)
in anticipation of additional downside to come.
For now, some are locking in CD's for 9 months and anticipating, as I am, the US Treasury market is next to crash.
Some are thinking 1 year bund 4.58% or gilts 5.1% (current rate) will be even more attractive after...
the goverment bond markets crash, causing interest rates to skyrocket, and further crippling the credit markets and global economy.
This along with the unwind from bond insurer Ambac & MBIA debt downgrades, and a PMI provider failure...
will be the butchers hammer or the pneumatic cattle gun from "No Country For Old Men" piercing the golden calve's head.
Fixed income at higher yields and for lower prices will look attractive rather than gambling on equities...
which much like real estate, are still unrealistically priced and have nothing but downside for the next several years.
My sister, a 30 year RE veteran and industry cheerleader in the best insulated market possible, Marin County, tells me,
its grim and this is going to be called our great depression. Her people say by year end, another 20% off the top of RE prices, minimum.
After the dust settles, in 20 years many will look back at the great depression of 2010 and say, how could it have happened? Ha!
Answers: Hubris, unchecked capitalism, rampant speculation, unprecedented financial institution bailouts, artificial asset price fixing and pure greed.
"I just talked with the agent at the listing office and he tells me that it is already in escrow. Sorry."
My nattering response follows...
Don't be sorry, I'm not worried, many will bleed to death catching these falling knives.
In the next several years, there will be much much more inventory to pick from at lower prices and in better locations.
Many of my people are now pulling out of equities and some are even pulling out of commodities (oil, gold)
in anticipation of additional downside to come.
For now, some are locking in CD's for 9 months and anticipating, as I am, the US Treasury market is next to crash.
Some are thinking 1 year bund 4.58% or gilts 5.1% (current rate) will be even more attractive after...
the goverment bond markets crash, causing interest rates to skyrocket, and further crippling the credit markets and global economy.
This along with the unwind from bond insurer Ambac & MBIA debt downgrades, and a PMI provider failure...
will be the butchers hammer or the pneumatic cattle gun from "No Country For Old Men" piercing the golden calve's head.
Fixed income at higher yields and for lower prices will look attractive rather than gambling on equities...
which much like real estate, are still unrealistically priced and have nothing but downside for the next several years.
My sister, a 30 year RE veteran and industry cheerleader in the best insulated market possible, Marin County, tells me,
its grim and this is going to be called our great depression. Her people say by year end, another 20% off the top of RE prices, minimum.
After the dust settles, in 20 years many will look back at the great depression of 2010 and say, how could it have happened? Ha!
Answers: Hubris, unchecked capitalism, rampant speculation, unprecedented financial institution bailouts, artificial asset price fixing and pure greed.
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