For those of you who want to wait until spring (again) to sell...

Have you seen some of the headlines lately? "Foreclosures Fall to Lowest Level in Nearly 3 years."

Do you know why foreclosure filings are at a new low?

Do you think it's because foreclosures have gone away OR perhaps because lenders are now required to follow the rules and are no longer cutting corners (at least not as much as before)?

Would that mean that lenders are slowing down, making sure the i's are dotted and the t's are crossed before foreclosing?

Once the i's are dotted and the t's are crossed on the backlog of foreclosures, do you think the lenders will want to wait and hold on to the properties OR quickly dump them on the market to cut their losses?

So now that you've given it some thought...does waiting to compete with more and more supply and selling for less money really sound like a good financial decision?

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/45682960

IF only headlins were true...

"Foreclosures Fall to Lowest Level in Nearly 3 years." This must mean that things are all better...right? Sure...IF you only read the headline and not the entire article.

After reading this and realizing that most people will in fact only read the headline, I asked our real estate expert Kirk Nace for his take on this and this is what he had to say. "We are seeing foreclosure activity initiated on approximately 250,000 properties per month. That's a 3 million properties per year pace. Now that NAR is admitting that their sales numbers have been off you will see that there are only about 3 million sales per year. What does that mean? Banks are foreclosing on approximately 60,000 properties per month. What is happening to the rest? Is the backlog just growing and growing and growing? What does that mean for future supply? And for prices?"

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/45680619

1 + 1 = 5?

For years NAR has claimed that the number of home sales have been above 4 million, while our real estate expert Kirk Nace has claimed that's just not possible. Guess what??? NAR has said this week that they've done some double counting and sales were weaker than they thought.

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/45659547

Are we there yet???

It is a question that is on everyone's mind. "Are we at a bottom yet?" The answer that I've heard for years now from most Realtors, Brokers and the Media is..."Not yet, but next year will be better."

So with next year just a few weeks away we asked Kirk Nace for his take..."The AVERAGE loan in foreclosure (not yet foreclosed on) has been delinquent 631 days!!! Set aside all the nonsense NAR, your politicians and others tell you and simply consider how long it will take to get caught up at this pace! As I have shared for several years now, the bottom of the housing market nationally will NOT occur before the 2nd half of 2016 at the absolute earliest!!!"

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/45507581/

Yep, it's going to be better by the weekend...right?

New filings mean more supply hitting the market approximately 30-36 months from now.

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/44885244

Only 858 days for banks to foreclose...

By now I'm sure you've heard stories of people living in their homes for free, without making a mortgage payment to their lender, for months if not years.

Click on the title above or the link below to review the entire AARP article.
http://www.aarp.org/money/credit-loans-debt/info-09-2011/foreclosed-and-paying-no-mortgage.1.html

New mortgage foreclosure notices jump to highest level in 4+ years...

3.5 million homes that should be foreclosed on and aren't even in the pipeline yet (that's another entire year of supply). Yep, sounds like a bottom to the housing market is here...NOT!

For sometime now, Kirk Nace has been sharing that the US Housing market will not hit a bottom before 4Q 2015. Looks like he has been wrong, as it won't occur until at least the second half of 2016.


Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/44529477

Half of US homes effectively under water!!!

We contacted national analyst and consultant Kirk Nace for his take on this new report, "This is, has been and will continue to be an ongoing downward spiral for as long as politicians continue to tack on band aid after band aid. As I have shared with clients for many years, the key to a true bottom remains the government completely getting totally out of the housing market. No more backstops, no more artificially low interest rates, no more low and no money down programs. Simply stop, prices will correct another 20-25% overnight and create a true bottom. The alternative that our elected officials seem hell bent on creating is to cause even more pain spread over an even longer period of time. There will be more pain to come, dragging it out over an indefinite period of time only prolongs the length of time before healing can begin." Said Nace in his typical non apologetic manner.


Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/45209336

Foreclosure rain delay ending...

We asked Kirk Nace, real estate consultant and owner of the best crystal ball in the business, his thoughts on this article..."here they come, get ready because there will be more distressed properties over the next 5 years than over the past 5 years! But if you've been paying attention to what we've been sharing you have known this and you have positioned yourself to profit accordingly." Nace said.

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/45240073

No Rise Until 2020???? Are you serious??

Yep, probably. If you read this entire article, “No Rise in Home Prices Until 2020: Bankers” it sounds like a big F*** YOU to all the sellers who’ve been patiently waiting for the “market to get better”. If I had a penny for every time I heard that, I’d have a lot of pennies! I even hear it from other real estate agents – I hear them TELL folks things all the time. Such as “it’s a great time to buy and it’s a great time to sell”, all in the same breath. And of course, this is because their mindset is solely on themselves and how they’re going to feed their family – i.e. the commission they will make from telling you what to do because their livelihood depends upon it.

But take a closer look at that article, and you’ll realize we (RORG) have been sharing this for years. Actually, my partner Kirk Nace has been sharing this for years, which is why we are now partners. His analysis is the most accurate and in depth from anything I’ve seen. And now I get to share it with you – what it means, where the opportunities are, how you can maximize on the potential, and how you can use that analysis to your benefit. If you go back through this site, Smashed Feet, you will find news articles and Nace's analysis, sharing this EXACT concept. The problem is - very few have been willing to accept the reality.

The law of supply and demand is much like the law of gravity – it exists even if you choose to ignore it. So is this article a surprise?? There’s more supply than demand – simple. What does more supply and less demand do to prices?

Do you need to maximize your equity preservation in your property? We can and will purchase it, at whatever number you want. We can and will show you how that might not be the best choice. We can and will show you the options you have. We can and will find the maximum dollars available for your property in 10-20 days. We can and will bring you several offers, typically above the listing price, in that 10-20 days.

You always have a choice. You can contact the agents (about 97% of them) that will tell you what you want to hear; heck, I’ll even refer you TO those agents. (You’re welcome for the referrals, agents!) … OR you can contact us if you want different results.

So why haven’t you called us yet? Maybe the market needs to beat you up a little more … The choice is yours.

Get in touch at www.lesliebriskman.com ...

Something to think about...

A look into the future...

Wow, the worst for the commercial real estate market still lies ahead. For years we have heard Kirk Nace tell us that commercial real estate will follow the same cycle as residential and will trail by 24 to 36 months. Here is yet another confirmation that for those of us who listen we do in fact have a real estate crystal ball.

Click on the title above or the link below to review the entire Orange County Register article.
http://www.ocregister.com/articles/guru-312324-real-commercial.html

Banks still at it...

By now I'm sure you've heard about the mess the banks have gotten themselves into with their questionable foreclosure practices... Well they are still at it...

Click on the title above or the link below to review the entire New York Post article.
http://www.nypost.com/p/news/business/house_of_cards_hNdx5fNGt6oOl1U9mTW0HN

Say goodbye to the "good ol' days"

When we asked Kirk Nace for his thought on this breaking news of the S&P downgrade he replied "What does this tell us about the oh so common phrase 'backed by the full faith and strength of the US government?' It's long overdue and not nearly a strong enough reduction, but I am sure the Obama administration has placed all kinds of pressure on ratings agencies to provide favorable ratings. There will be much more to come, the events of the past week with our financial markets here in the US, the challenges facing Europe, China, Japan and Brazil, are simply the tip top of the iceberg. The exciting news is this creates infinite new opportunities and possibilities for those who are looking."

A look back to 2001...

How is it that our politicians knew that Fannie, Freddie and the US Housing Market posed systemic risks in 2001 and yet did nothing to prevent the recent collapses?

Click the link below to watch the short video.
http://www.youtube.com/watch_popup?v=cMnSp4qEXNM&NR=1

What do the numbers really mean?

Here is an easy to understand article on how unemployment numbers really work and what you should know.

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/44033486

A crystal ball into the United States' financial future?

We recently shared with you our top consultant, Kirk Nace's thoughts on our debt challenges here in the US. Mr Walker, the former comptroller of the US who now runs the Peter G Peterson Foundation, was one of the people with whom Mr Nace shared his thoughts. Take a couple of minutes and hear what Mr Walker had to say this morning on CNBC.

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/43984077

A picture is worth a thousand words...

Unless of course you are talking about the US debt. Then a picture is worth $114,500,000,000,000.00 words.

Click on the title above or the link below to review just how much the US debt really is.
http://usdebt.kleptocracy.us/

It's my right...I'm American!

When recently asked by a US Senator and others what his thoughts were on the US debt plans, this is what Kirk Nace had to say...

"As a nation we have created the situation we now face over many decades of irresponsible choices. Accepting responsibility is a must. Those who have allowed this situation to exist for the longest period of time, should bear the greatest responsibility. Those who have had less opportunity to change it should bear a lesser responsibility.

We reach voting age at 18, someone who is now 68 has had 50 years during which they have allowed this situation to come into being and during which they received the benefits of their choices to date. Someone who is 28 has had only 1/5 that time and therefore should be held only 1/5 as responsible.

Connecting a person's age to the amount of debt incurred under their watch, and then attaching that to the benefits they receive (SSI, Medicare, Welfare, etc) and/or the taxes they pay could certainly be worked out in a very simple, across the board manner.

ie. you were born in 1955, here is your responsibility, period. It impacts your taxes this way ____, it impacts your government sponsored benefits this way ___. You could potentially tie this to estates, etc as well.

Obviously, there is no perfect plan that all will readily accept. This approach however would allow a democracy to act as one and to clearly demonstrate that the individuals within such a nation have a responsibility.

I have shared this concept with clients for a number of years and have yet to hear a single credible objection. Of course the reality is, our older citizenry will be held responsible for more at precisely a time when they are feeling entitled to more. Well folks, they've already got theirs. They voted it to themselves already and have in fact stolen from their future generations. Now is simply the time when we are forced to right those wrongs and to take back much of what we have come to feel entitled to.

We have lost our edge because we have elected to spend our wealth in ways other than reinvesting in education. We are now at a competitive disadvantage to many other nations when it comes to our ability to out think and thereby prosper. This is one of many choices made by those who now want to collect Pensions, SSI, Medicare and all the other nonsensical entitlements that they feel they should receive simply because they live here.

You are still here, accept responsibility for bringing the entire nation here, and if you must live frugally for the balance of your days, that will perhaps still allow you to teach future generations that choices made truly do have consequences."

Supply and Demand still applies...

Another great piece on how the law of supply and demand applies to real estate. I contacted the man we believe to be the nation's most accurate prognosticator of the housing mess, Kirk Nace, and his somewhat abrupt response was simply "look, I have been sharing that our bottom won't occur nationally until the later part of 2015 at the absolute earliest and prices will be at least 25% lower than where they are here in the later part of July 2011. At least with the other turmoil in D.C. they may not have enough focus on this to continue screwing it up!"

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/43913483

No Way Eh...

Could we, the USA, learn something from our loonie neighbors to the north? Did you know that in Canada, they don't have Mortgage Interest Deductions on their personal residences? Does this mean that they don't have a Mortgage Interest Deduction? Nope, not at all! In fact, they only offer it to property owners of investment properties. Now before you go and tell me Take Off Eh...read the link below, then go back and re-read the posts from December 1st & 14th, 2010 and ask yourself who truly benefits from the MID?

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/43882179

You didn't really think they would stop did you???

Robo signing and all the other nonsense big banks promised to stop, hasn't.

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/43801510

Something to think about

For your reading pleasure...here are a few links to interesting articles for the week of July 11, 2011. Enjoy...

http://finance.yahoo.com/news/Neighbor-vs-neighbor-as-apf-2524543580.html?x=0

http://finance.yahoo.com/news/Economy-Faces-a-Jolt-as-nytimes-3470532037.html?x=0

http://finance.yahoo.com/news/First-Person-Why-We-Pumped-ac-1929272088.html?x=0

Are you ready for another 20% price drop and a 2012 recession?

I just spoke with Kirk Nace, who simply commented "It's good that the news we have been sharing for almost 7 years is now being shared more by the main stream media."

Click on the title above or the link below to review the entire Yahoo Finance article.
http://finance.yahoo.com/blogs/daily-ticker/20-drop-housing-cause-recession-2012-says-gary-161445494.html

Bill Gross further negative on US economic future

A few weeks ago we shared that Bill Gross views the United States in worse shape than Greece.

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/43733676

PRICES ARE UP AND PIGS ARE FLYING ....

There's no link to this message and it's simple. Kirk Nace (contributes to this site under the name "Ouch") has shared some fairly logical and critical information.

How it's possible for the media to spin that sales prices are up (which is complete bullshit, btw):

EXAMPLE#1:

5 sales

4 @ 100K

1 @ 200K

Avg sales price is 120K.

EXAMPLE #2:

5 sales

3 @ 90K

2 @ 175K

Avg sales price is 124K.

So, consider the source and then look around. Ask yourself, is there anyone you know who is better off today than they were say 2-3 or even five years ago? COMMON SENSE!

Directly from Kirk Nace: "Reality is the low end dropped, the high end dropped and more people at the higher end are finally being hit and/or deciding to not hang on so they walk away. In most markets the lower end was hit first and is further through the correction than the mid and upper ranges, so now a higher percentage of total sales has moved to the mid and upper ranges. Average homes in those ranges aren’t selling for more, but the fact that more sales are occurring there is pulling market average prices up."

In other words, the LAW of Supply and Demand has not been repealed!

Please submit comments and/or commentary directly on this site, or email me if you'd like further clarification of this.

The Perfect Storm?

What IF...I mean this is the guy who accurately called the 2008 financial crisis, could he be right about this? I wouldn't bet against it!

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/43659234

You don't understand...it's different here

What can we learn from the Irish?

Click on the title above or the link below to review the entire Daily Wealth article.
http://www.dailywealth.com/1778/One-of-the-Saddest-Stories-in-the-World-A-Lesson-We-Can-All-Learn-From

What gives America???

About two weeks ago, Bill Gross, head of the world's largest bond fund said that the US is actually in worse shape than Greece and that our true debt as a nation is close to $100 TRILLION.

So with that said, what are we as Americans doing about this? Why, we are addressing this in the "American Way" of course. We are pointing fingers at others and passing the blame onto somebody else...watching our favorite reality TV shows, eating a couple Big Mac's, large fries, and a small diet Coke of course (after all, we do care about our health).

What is Greece doing about this? The people of Greece have gotten up off their butt's and have let the world know that enough is enough. Now I'm not suggesting or encouraging violence, but how is it Greece is saying "NO MORE" and America continues to play the blame game??? Does it really matter if it's yours, mine, his or hers fault? Does that change the fact that we are in the shape we're in?

What IF...the State and Federal Governments can't agree on a budget and they shut down or default on their debts? What IF...we the citizens of the USA graciously accepted any shut down or defaults on debts as EVERY single elected officials immediate resignation for either being unwilling or unable to do the job we the people have hired them to do? What IF...these now former elected officials had to go out and find a new job, one perhaps in the improved job market they have been telling us all about? What IF...these former elected officials no longer received the perks and benefits they now enjoy, but instead receive the same "perks" as the rest of us...you know, the really really good ones from the improved job market? What IF...America stopped waiting for someone else to "do it"?

Click on the title above or the link below to review the photos of the unrest in Greece. Please note that some of these photos may be considered graphic and or disturbing and should be viewed at your own discretion.
http://news.yahoo.com/photos/greek-debt-unrest-1309284105-slideshow/

Is it really this bad???

In a live interview (see link) Bill Gross, head of the world's largest bond fund said that the US is actually in worse shape than Greece and that our true debt as a nation is close to $100 TRILLION...gee, is it possible that Kirk Nace's prediction that the United States will become the Former United States could be moving ever closer to reality? For more information on Kirk Nace's comments see the recent article "I know of one expert who has a clue..." by clicking the following link. http://smashedfeet.blogspot.com/2011/06/i-know-of-one-expert-who-has-clue.html

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/43378973

I know of one expert who has a clue...

Diana Olick, the renowned CNBC real estate analyst, was one of several experts who spoke this week at a housing conference where panelists included Robert Shiller (Case Shiller) and others. In the attached article she concludes that what is most disturbing to her is that "all these experts who are supposed to tell us when it's all going to be alright...don't have a clue." Well Diana, our resident expert Kirk Nace, has been sharing for years what was going to happen and upon reading your article I contacted him and asked him to update where the US Housing market is headed.

Mr. Nace shared that "The earliest we will possibly see a bottom will be the fourth quarter of 2015. This could of course be pushed out by another decade if our elected officials continue to meddle with the market. This bottom is AT LEAST 25-30% below prices as they exist here in June 2011. In some markets there will be an even greater future correction. Upon reaching this elusive bottom, we will bump along for years, at least 5-10, before slowly coming back. Reality is that prices would not return to peak levels before 2040 at the earliest. I say 'would' because there will be no US housing prices at that point. I have constantly been considered too extreme, so I suppose this is as good a time as any to again remind you that I don't expect US housing prices to ever get back to the levels where they traded during the peak because before that will occur I still fully expect the US to follow the path of The FORMER USSR and become The FORMER United States of America. States all send more tax dollars to Washington DC than they receive benefits for. Almost every state is operating at a deficit and its citizens will eventually recognize that sending $100 billion per year to Washington DC in exchange for $20 billion per year in benefits is simply bad math, particularly when you are operating at a deficit to begin with! The federal government has obligations it simply can't meet and if, or as I believe when, there ceases to be a federal government countries like China, Germany and others will be left with worthless paper and no one to collect from as the 5-10 smaller nations that will be formed when the USA collapses will not assume that debt. So if you are asking about US housing prices, they will continue to drop, probably bottoming well below where they are today and will certainly be a continued drag on the US economy, until there no longer is a US economy."

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/43354956

Are you ready to sell yet???

Reuters reports that Robert Shiller has stated that home prices could fall for ANOTHER 20 YEARS!!! Sitting here in the Midwest I can see our top consultant and market forecaster, Kirk Nace, grinning, shaking his head and saying "I told you so."

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/43339262

5 Reasons US home sales will continue to fall through 2012 – sound familiar?

We asked national real estate consultant, and acclaimed housing market prognosticator, Kirk Nace, for his take on this article and he simply responded with "We've been consistently sharing this, and similar information since late 2004. The US housing market WILL NOT bottom before the latter part of 2015 at the absolute earliest and today's prices will be higher than prices will be at any point for well over a decade. Our message isn't any more popular today than it was almost 7 years ago when we started sharing it, we recognize that Realtors, bankers, builders and sellers don't like the news. I guess the question is will you benefit more by shooting the messenger or by working with someone like us to uncover the opportunities that exist? By the way, there are more and larger opportunities in the US housing market today than ever before, if you know how to recognize them."

Click on the title above or the link below to review the entire Business Insider article.
http://www.businessinsider.com/hedge-fund-manager-alistair-lumsden-the-us-housing-crisis-is-not-ov-2011-5

The crash is getting worse???

Go back and re-read the older posts and you will see that for years now Kirk Nace has been sharing this exact information...

Click on the title above or the link below to review the entire Yahoo Finance article.
http://finance.yahoo.com/banking-budgeting/article/112698/housing-crash-getting-worse-marketwatch?mod=bb-budgeting

Negative equity???

Again, Kirk Nace has been sharing this with us for a long time...

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/42957613

Double Dip...

We've asked Kirk Nace his take on the Double Dip in the US Housing market and this is what he had to say "Duh, we've told you this was coming..."

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/42904204

你会说中文

Do I speak Chinese? No. However it might be a good idea to learn how real soon. According to the article below, the US economy is very close to being taken over by China and most people haven't even noticed.

America has been the world's largest economic power for as long as anyone can remember, and that could change within the next five years.

Click on the title above or the link below to review the entire Yahoo Finance article.
http://finance.yahoo.com/banking-budgeting/article/112616/imf-bombshell-age-america-end-marketwatch

How much is this going to cost???

It appears that some mortgage companies have not been following the rules and the Government is ordering them to pay up...

I'm as shocked by this as you are...mortgage companies not following the rules???

Click on the title above or the link below to review the entire Yahoo News article.
http://news.yahoo.com/s/ap/20110413/ap_on_bi_ge/us_foreclosure_reimbursed

Who is "Linda Green"?

Watch the 14 minute video from 60 Minutes to find out. Then ask yourself when do you think this mess will REALLY go away?

Click on the title above or the link below to review the entire Yahoo News article and 60 Minutes video.
http://news.yahoo.com/s/yblog_thelookout/20110404/bs_yblog_thelookout/the-foreclosure-mess-isnt-going-away

Prices are falling???

How can this be? Didn't the media tell us that the recession had ended back in June 2009? Who would have thought that high unemployment, record number of families on food stamps, record number of families in foreclosure, chaos all over the world, a HUGE supply of homes for sale or sitting vacant waiting to come on the market, tighter lending standards, less and less demand, and the cost of food, gas, and clothing all going up, would drive down prices???

I don't know about you, but I am glad the recession is over, or we might be in some serious trouble...

Click on the title above or the link below to review the entire Yahoo Finance article.
http://finance.yahoo.com/news/Home-prices-falling-in-most-apf-2179818115.html?x=0

More contracts signed means...

Why do you suppose that there was an increase in both contract signings and cancellations??? Hmmm…I’m sure it’s not because buyers are making a dozen or so offers on a dozen or so properties and taking the best offer from the first seller that responds…

Click on the title above or the link below to review the entire Yahoo Finance article.
http://finance.yahoo.com/news/More-people-signed-contracts-apf-1373085761.html?x=0

Sell now or get less later...

For years now, Kirk Nace has been sharing with his clients that they have a choice. "Either sell now for the maximum dollars available today, sell tomorrow for less money than you could today, or wait many many many years to sell for the exact same amount of money as you could have today."

So, what choice will you make?

Click on the title above or the link below to review the entire Yahoo Finance article.
http://finance.yahoo.com/news/Nearly-20-of-Florida-homes-cnnm-2507768369.html

Wall. Street. Shut. Down.

No one agrees. Parties fight. It's the same old song and dance we've been experiencing for years. The short term reality of this [a government shutdown] could be painful....(the long term reality is probably pretty minimal).

Yikes. People wouldn't get paid. The SEC stated the option of having private money to pay employees in 1995 does not exist today.

Hmmmm......what's the solution? Is there one that isn't painful? Is continuing to put band-aids and minimize temporary pain only a double-edged sword that will threaten the legacy we wish to leave our children and create more pain in our futures?

What do you think?

Some Dream...

According to Kirk Nace, the top real estate market prognosticator, "This is one of the best pieces I have seen in terms of simplifying the US Housing Market and the decision to buy or sell. Prices still have another 25% or more to drop from today's levels and we will not even approach a bottom until at least 2015 or beyond. Once we do arrive at the future bottom, which could be delayed repeatedly by our government's continued insistence to tinker with the market, it will be many more years before we leave that bottom. I fully expect that prices will continue to decline through at least 2015 and that we will then see them hover along a bottom for close to a decade, perhaps longer, until they ultimately start moving ever so slightly up sometime in the mid 2020's at the earliest. Today's owners can sell now, for whatever the market will bear, or they can sell for less at any time over the next 20+ years, or they can wait 20+ years and again sell for what they could have sold for today. The likelihood that prices will return to 2005/2006 levels anytime in the next 30 years is simply fantasy."

Click on the title above or the link below to review the entire CNBC article. http://www.cnbc.com/id/41782186

Selling your home?

If you are thinking of selling, Reuters says to "Get Real!"

Click on the title above or the link below to review the entire Reuters article. http://blogs.reuters.com/prism-money/2011/04/04/home-sales-get-real/

One, Two, Three...PULL

Fox Business article on how tearing off the band aid is the best route for the housing market. Haven't we heard this here on this site, and from Kirk Nace for several years now? Click on the title above or the link below to review the entire Fox Business article. http://briansullivan.blogs.foxbusiness.com/2011/03/30/rip-housing-band-aid-dump-all-foreclosures-market

Never own a home???

We just saw this posted on Yahoo Finance, a site with huge viewership from prospective buyers, how will this impact future demand? We asked Kirk Nace for his take, Nace said "Altucher is considered extreme by many and yet I personally find his perspective and views on housing generally more CONSERVATIVE than my own. I saw the interview and really have no significant disagreements with his general premise. The National Associations of Realtors, and a few other self serving groups have long promoted home ownership as 'The American Dream.' It's not a dream, its a nightmare and even during the best of times, residential real estate in the US basically keeps pace with inflation, it's no great investment. We have been working with The RESULTS Group on a program entitled 'Live for Free Forever' wherein we take the reality of today's US Housing market and show people how, generally within 3 to 7 years, they can create a situation wherein they are in fact never again dipping into their own pockets to pay for housing. This concept is employed by only the sharpest of all potential buyers, for most home ownership is simply an albatross they have been brainwashed into carrying around their necks."

Click on the title above or the link below to review the entire Yahoo Finance article.
http://finance.yahoo.com/tech-ticker/why-i-am-never-going-to-own-a-home-again-536051.html

New homes a bad deal???

Does anyone else recall Kirk Nace telling us that new construction would falter as the margin between new and used became greater and that only long after we stop creating new supply will the enormous existing oversupply be used up, after which the US Housing market could find it's natural bottom? Looks like we are slowly and painfully moving in that direction.

Click on the title above or the link below to review the entire Yahoo Finance article.
http://finance.yahoo.com/news/New-homes-are-becoming-a-bad-apf-507780796.html?x=0

Well done piece on supply and demand in housing market.

We asked Kirk Nace, the man who for the past decade seems to have had a crystal clear crystal ball when it comes to the US Housing market. "This and similar articles seem to be finally touching on the tip of the iceberg. While it's more honest and accurate than anything we see coming out of NAR or DC it still paints an overly optimistic picture of demand returning and supply not continuing to grow drastically. Hopefully, we will see more of this type of reporting so that home owners don't continue to suffer with faulty expectations and can instead make decisions to end their bleeding."

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/42067825/

Does ANYONE in real estate think?

February 21, 2011–One of the nation’s largest real estate operations reported today at its national convention that it ended 2010 with 79,315 associates, 701 market centers (offices) . . . . . .since the real estate market’s sharp downturn in 2005, the company has grown 30 percent in agents, 40 percent in market centers, 21 percent in closed units and 11 percent in closed GCI.

The above is taken directly from the website of one of the largest real estate companies in the country. This press release was published intentionally by the leadership of one of the nation’s larger, more successful and relatively speaking better, real estate companies. Let’s take a look at what they are so proud of:

30% more agents, great growth can be wonderful!

40% more offices – why does an increase of 30% in people require 40% more offices? Doesn’t this speak to inefficiency in expansion and unnecessary overhead expense?

21% more closed units – so 30% increase in agents and only 21% more business? Doesn’t this tell us that the per agent production is dropping? Should we be proud of the fact that our agents are on average getting worse and producing less?

11% more closed GCI – this is the Gross Commission Income. According to this company's own report, they have increased the people who split up the income by 30% but only increased the income by 11% - congratulations you are now getting an even smaller piece of the pie!

My intention is to not pick on this particular company, but to instead point out how rare it is for people in and around the real estate field to actually stop and think. To allow those thoughts to turn into ideas and for those ideas to then create meaningful changes.
The company highlighted above obviously believes that more offices and more agents are important. Do you think the public would prefer that someone focus on creating more competent, more professional agents, and quite possibly fewer of them?

Since its inception The RESULTS Group has focused on assisting a select few in becoming more skilled, more competent, more professional and better able to truly serve their clients. There is no fluff, no warm and fuzzy, no rah rah, just a commitment to create more competency. What if a company as large and influential as the one noted above adopted this approach?

Want to know the truly ironic part? The company above promotes itself as a training and education based company and yet according to their own numbers, their agents are doing less and less business in an environment where more and more buyers and sellers are desperately seeking the help of competent professionals.

Is there a place for thinking in the real estate field?

A hard look at US Housing Market Supply and Demand

Click on the title above or the link below to review the entire Minyanville article.

http://www.minyanville.com/businessmarkets/articles/housing-market-real-estate-census-bereau/3/1/2011/id/33081

Fewer Americans view home ownership positively...

Most expect even further mortgage tightening. We asked Kirk Nace for his thoughts on these views of the US Housing Market and he shared "We have been calling for a fundamental shift in the way Americans view the supposed American Dream. For decades this marketing ploy was incredibly effective in creating a booming industry, we are now faced with the reality that, similar to what we find with most marketing claims, the promise was far greater than the performance. Tens, and ultimately close to 100 million Americans will end up being directly burnt by our having bought into the nonsense. Eventually every tax paying American will become aware that housing is not a dream, it's a nightmare and that instead of being your biggest asset it is for most, their biggest liability."

Click on the title above or the link below to review the entire Reuters article.
http://www.reuters.com/article/2011/02/28/usa-housing-survey-idUSN2779382120110228?pageNumber=1

NAR may have overstated sales by close to 30% in 2010???

Gee, now there's a shocker, they wanted the public to think that sales were far better than they actually were. Is it any wonder Realtors are considered so incredibly disreputable by the public?

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/41719022

The numbers are bad???

The other co founder of Case Shiller housing index sees "lots of negatives out there."

Click on the title above or the link below to review the Bloomberg video.
http://www.bloomberg.com/video/66942742/

Home prices still falling...

Case Shiller co creator sees prices going down substantially, yeah but what does he know? Folks, you've been hearing it all along and I just spoke with Kirk Nace again today regarding the future of the US housing market he once again repeated, in somewhat of an annoyed tone "Prices have at least another 25-30% to drop nationally from where they are today, the sooner the government gets out of the housing market the faster it will happen and the faster a true bottom will be reached, I feel like an echo saying the same things over and over again."

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/41715299

Wake Up...it's not a Dream

Fox News report on the upcoming, long overdue, dismantling or scaling back of Fannie, Freddie and FHA.

Click on the title above or the link below to review the entire Fox News article.
http://www.foxnews.com/politics/2011/02/21/shattered-dreams-end-fannie-freddie/

Take your time...

USA Today reports foreclosures now taking 17+ months and expectations are that this could grow to close to 2 years. We asked Kirk Nace what he feels this means to the US housing market, "The longer it takes to work through the process, the greater the total pain which will be endured. The fact we are still seeing this number grow tells us that we are years away from a bottom in the housing market." For frequent followers of this site, Kirk Nace has been sharing for years that this correction will far greater in both depth and duration than either The National Association of Realtors or our elected officials in D.C. would have us believe.

Click on the title above or the link below to review the entire USA Today article.
http://www.usatoday.com/money/economy/housing/2011-02-21-unpaidmortgages21_ST_N.htm

Details of the recently reported housing numbers paint another picture

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/41620358

Many, many, many more foreclosures are coming

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/41604788

Well done piece on the mortgage interest deduction

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/41579140

Winners and losers of housing finance reform

Click on the title above or the link below to review the entire Reuters article.
http://www.reuters.com/article/2011/02/11/us-housing-winners-losers-idUSTRE71A55K20110211?pageNumber=2

Do you still want to wait for prices to drop before you buy?

We hear this all the time..."I'm going to wait for prices to hit bottom before I buy. I can save more money that way." So the question then becomes, are you paying cash?

"Oh no, I'm going to finance of course."

Imagine a few months ago you found "The One" the home that had it all and IF you took action back then you could have locked in at around 4% interest for 30 years, and let's say your payment would have been $1,000 a month (to keep the math simple).

Good news, you decided to wait to "save money" and the home dropped it's price $15,000. Now rates are up around 5% which is only a 25% increase in your cost to borrow. Your new monthly payment is $1,250 per month. So to save $15,000 it will now cost you an additional $90,000 over the next 30 years ($250 x 12 = $3,000 x 30 = $90,000). What happens when the rates go to 6% or 7% or higher? At what point will this home become unaffordable?

So I'm curious...how much longer do you want to wait for the bottom?

Click on the title above or the link below to review the entire Yahoo Finance article.
http://finance.yahoo.com/real-estate/article/112093/how-buying-a-home-is-likely-to-change?mod=realestate-buy

4th quarter 2010 shows largest housing value drop in 2+ years!

The rate at which prices are further correcting is again accelerating. We asked Kirk Nace for his take "The longer the government tinkers with, and tries to apply band aids to, the housing market, the more total pain it will endure and the longer it will take to reach a bottom from which healing can begin."

Click on the title above or the link below to review the entire Housingwire article.
http://www.housingwire.com/2011/02/09/u-s-home-values-post-largest-quarterly-decline-in-2-years

Apparently, it is coming...

Just as Kirk Nace has been telling us for far too long, the costs of borrowing for mortgages is going to go up. The Federal Government currently backs approximately 99% of all new loans being originated, in order for them to reduce this to 50% or less HUGE changes will have to take place and while the Federal Government has been content to spend taxpayer dollars throughout the course of the US housing market collapse, it's probably a pretty safe bet that the private sector will be far more concerned about making loans that actually make sense. This means higher points, fees, interest rates and down payments. As we've been told this will further soften demand in an already weak housing market.

Click on the title above or the link below to review the entire Reuters and Bloomberg articles.
http://www.reuters.com/article/2011/02/09/us-usa-housing-idUSTRE70R80420110209?feedType=RSS&feedName=domesticNews

http://www.bloomberg.com/news/2011-02-09/fannie-mae-freddie-mac-could-be-phased-out-under-treasury-s-housing-plan.html

DC is the Best Office Real Estate Market in US - Oh Crap!

If Washington DC is experiencing the best office real estate market in the country . . . click on title above or cut and paste link from below)

Does that mean the government is likely cutting back or growing?
Does that mean even more taxpayer dollars are being thrown away on big government?
How do you feel about that?
I'm pissed!
Since the current administration took office in Jan 2009:

We have seen our debt grow by over 40%
We have seen more Americans out of work than ever in our history
We have more people accepting food stamps than ever in our history
and yet DC and Wall St are booming

How long will you be okay with this?

My friend, Kirk Nace, has long said that we are a nation of followers, afraid to think, afraid to question and willing to just follow along as long as someone else takes care of us, and things are "good enough" because we are apathetic and almost uniformly feel entitled to so much that we haven't earned. Can he be right about yet another oh so ugly reality? Please tell me no.


http://www.bizjournals.com/washington/news/2011/02/16/dc-leads-nation-in-office-recovery.html

We've been telling you it's coming...

Reuters - higher costs of borrowing are on the way. This article explains a few of the options being discussed. Remember Kirk Nace told us long ago that we would return to 20% or more down payments becoming the norm. Will this prove to be yet another issue he accurately predicted well in advance?

Click on the title above or the link below to review the entire Reuters article.
http://www.reuters.com/article/2011/02/04/us-usa-housing-mortgages-idUKTRE7136K120110204

A do-it-yourself project

Homeowners start fighting back against foreclosures - on their own!

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/41406209

CNBC on the state of the US housing market

Sounds familiar, supply and demand issues will rule the day.

Click on the title above or the link below to view the CNBC video.
http://www.cnbc.com/id/15840232?play=1&video=1776163448

Wall Street Journal article on home ownership rates in the US.

According to Kirk Nace, "It's not out of the question that we will, over the next 5 years or so, see the overall nationwide rate drop into the low 50's. this is a pendulum and when we look historically we see 60-62% being a stable rate for homeownership. The pendulum had swung to nearly 70% and will in all likelihood swing back to at least the mid 50's, but with the aging of Baby Boomers I expect it bottoming somewhere between 45-52%."

Click on the title above or the link below to review the entire Wall Street Journal article.
http://online.wsj.com/article/SB10001424052748704254304576116402472968150.html?mod=googlenews_wsj

Government to allow 11 month extension on "no flipping" rules

We asked Kirk Nace for his take on this, and in his typical style he answered us with "if home sales, and expectations for home sales were strong do you think they would have continued allowing investors to absorb some of the MASSIVE inventory that exists today and will be with us for many more years? They are doing whatever they can to prop up the numbers, they know that when an investor buys and "flips" that will be counted as 2 sales thereby making the numbers, and the "recovery" look far better than in reality it is."

Click on the title above or the link below to review the entire Reuters article.
http://www.reuters.com/article/2011/01/28/usa-housing-idINWAT01484820110128

Is it still the "American Dream"?

Multi generational housing, decreased desire to buy homes, and a few other points to consider.

Click on the title above or the link below to review the entire USA Today article.
http://www.usatoday.com/money/perfi/basics/2011-01-30-life-stages-housing_N.htm

"a number of years"

Here are a couple of interesting articles that claim at least 5 more years of down market. Hmmm...isn't that what someone who posts on here regularly has been saying for many many years now???


Click on the links below to review the entire CNBC & Bloomberg Businessweek articles.

http://www.cnbc.com/id/41295173

http://www.businessweek.com/magazine/content/11_06/b4214044575550.htm

No Federal bailout of States

Interesting article touching on state and local government default potential. I forwarded it to Kirk Nace to get his take and here's his response...

"Hmmm...
What happens when individual and families can't or don't pay their bills?
What happens when companies don't or can't pay their bills?
What happens when small local governments can't pay their bills?
What happens when state governments can't pay their bills?
What happens when the federal government can't pay it's bills?
Think in terms of who suffers, future borrowing costs and availability of money/credit, precedents set and the like."

Click on the title above or the link below to review the entire Yahoo News article.
http://news.yahoo.com/s/ap/us_states_federal_help

Things are getting better . . . right CA?

As I read the Bloomberg article (click on title above or cut and paste from below)and am again informed that jobs are still being lost in most places, and even according to Bernanke “it could take four to five more years for the job market to normalize fully,” Fed Chairman Ben S. Bernanke said Jan. 7 in testimony to the Senate Budget Committee after the jobs report. We continue to be told things are getting better.

I had the opportunity earlier this month to be the speaker for The CA Desert Assoc of Realtors Annual Kick off event. The crowd was only a few hundred and I find it fascinating that fewer than 10% were willing to grasp the message and the reality of their situation. The remaining 90%+ were upset and offended.

Another report was released today on consumer confidence. It stated that consumer confidence rose more than expected last month and now stands at an 8 month high. We continue to see people celebrating a "recovery." Yet if we stop and think about the reasons for the apparent "recovery" we will see that things aren't quite as we would like to believe they are.

Sure, retail spending is up and we are saving a little more than in the past. Of course, when millions of Americans aren't paying their mortgage, taxes, insurance and the like it would make sense that they can spend more!

Although I haven't yet seen the official numbers, I believe we will see December record the 20th consecutive month that the number of Americans on food stamps has grown over the previous month - 20 CONSECUTIVE MONTHS!!!

Yep, things are getting better, or perhaps we are becoming dumber?

Good news is that there are plenty of competent informed professionals out there who are not only knowledgeable and skilled but who are committed to helping others who all too often are finding themselves in difficult situations. If you need to know how to find one, email Kirk@TRGHelp.com

Be well, it is after all a choice



http://www.bloomberg.com/news/2011-01-25/payrolls-decrease-in-35-u-s-states-led-by-new-york-minnesota-florida.html

A market rebound far off???

We've long told you FL was in many ways, the nation's housing market crystal ball. The question for many has simply been how far are we behind what is happening in FL, particularly SW FL? Well, here's a look at what's coming in FL...

Click on the title above or the link below to review the entire Gulf Coast Business Review article.
http://www.review.net/section/detail/1-21-2011-florida-market-rebound-far-off/

State Bankruptcy?

NY Times article on problems facing states and possibility of their vacating pension obligations via a bankruptcy type strategy. I'm pretty sure both William Wallace and Ouch! (Kirk Nace) have discussed this here in the past...stay tuned.

Click on the title above or the link below to review the entire New York Times article.
http://www.cnbc.com/id/41189172

Welcome to the New Real Estate Reality!

Take a second, click on the title to this above, or the link below and read what is written there . . . go ahead do it now

http://finance.yahoo.com/news/Home-sales-hit-13year-low-apf-1272155599.html?x=0

Did you do it?

Let's look at some of the article's highlights:

* The number of people who bought previously owned homes last year fell to the lowest level in 13 years, and economists say it will be years before the housing market fully recovers. MY FRIEND AND FREQUENT CONTRIBUTOR HERE OUCH! (KIRK NACE) HAS BEEN SHARING THIS FOR OVER 5 YEARS AND YET SOMEHOW IT'S STILL NEWS???

* High unemployment and a record number of foreclosures are deterring potential buyers who fear home prices haven't reached the bottom NO REALLY, FEAR IS STOPPING PEOPLE FROM TAKING ACTION? WHEN WILL THE FEAR GO AWAY?

* "We built too many houses during the boom, and now after the crash, it will take us a long time to get back to normal," said David Wyss, chief economist at Standard & Poor's in New York. SO IT'S A SUPPLY AND DEMAND ISSUE? DEMAND IS LOW BECAUSE OF FEARS THAT WON'T DISAPPEAR ANYTIME SOON AND SUPPLY EXISTS, IT ISN'T GOING AWAY UNLESS GOD FORBID WE SUFFER NATURAL DISASTERS (ASK THE FOLKS IN NEW ORLEANS ABOUT THAT OPTION)

* "The job market is still very weak, and unemployment is very high. Until we get more jobs, people will be reticent about buying homes," INTERPRETATION -> DEMAND IS GOING TO STAY LOW

* Zandi (chief economist at Moody's Analytics) said home prices would fall another 5 percent this year. Sales of previously occupied homes would likely exceed 5 million. That's a slight improvement from last year, he said, but it will probably take until 2013 or 2014 for sales to reach a healthy level of 6 million units a year.SO WITH SUPPLY AT AN ALL TIME HIGH AND DEMAND EXPECTED TO TAKE ANOTHER 3+ YEARS TO RISE BY JUST 20% (4.91 MILLION IN 2010) IT'S LOOKING LIKE PRICES WILL CONTINUE TO DECLINE FOR AT LEAST ANOTHER 4-5+ YEARS . . . I'VE HEARD THIS SOMEWHERE BEFORE (READ THE OLDER ENTRIES ON THIS SITE FOLKS)

* Still, the unemployment rate is not expected to fall much below 9 percent this year. And the housing market cannot fully recover until the glut of foreclosed homes is cleared. Last year, a record 1 million homes were lost to foreclosures, and foreclosure tracker RealtyTrac Inc. predicts 1.2 million more will be lost this year.HOW WILL THE GLUT BE CLEARED WHEN 2010'S FORECLOSED HOMES (THE MOST EVER) AREN'T BACK ON THE MARKET YET AND FORECLOSURES ARE EXPECTED TO INCREASE ANOTHER 20% THIS YEAR???

SUMMARY:
We built too many homes
We have several years worth of inventory and shadow inventory currently available
This supply is still growing, rapidly
Demand is low because of fear
Unemployment and other causes of the fear aren't going away anytime soon
Kirk Nace's projections (that he has shared with some of us for many, many years) are looking more accurate all the time . . . prices bottom between 2015 and 2020 and then stay flat for a decade of more.
Of course he does tell us that the longer the government meddles in the market the more this pain will be extended. I've known him for a long time, and he can be incredibly annoying, but folks, the reality is becoming more and more difficult to ignore.

Any questions?

Fixing the mortgage market?

Interesting thoughts here, many sound very familiar to those of us who have been following Kirk Nace for the past many years.

Click on the title above or the link below to review the entire AEI article.
http://www.aei.org/paper/100189

Pay to the order of Uncle Sam...

Congratulations USA! We now have a new record and it will only cost each citizen $45,300. The United States is now at a record $14 trillion-plus deficit. Within a few months we will be at our debt limit unless the government votes, again, to raise the legal debt limit.

Click on the title above or the link below to review the entire Yahoo News article.
http://news.yahoo.com/s/ap/20110115/ap_on_re_us/us_debt_wars

US Housing market with another 50% decline still to come?

We asked Kirk Nace, the top national prognosticator his take on this information. Mr Nace commented "While we are not calling for quite another 50% from here, it's entirely feasible that if the US Government continues it's futile Band Aid approach, we could over the next few years see additional valuation declines of 50%, or even more dependent upon how slowly the government gets out of the housing market."

Click on the title above or the link below to review the entire Market Oracle article.
http://www.marketoracle.co.uk/Article25597.html

No really...THIS time it's getting better...

When we asked Kirk Nace about this, he simply responded with "no, really you are kidding, there will be more foreclosures in 2011 than ever? It's a good thing Realtors and politicians are telling us the market is improving, because if they say so it's got to be true." For those of you who don't know Kirk, imagine gallons of sarcasm oozing from that statement, but then again Kirk has been sharing this message for years.

Click on the title above or the link below to review the entire Yahoo Finance article.
http://finance.yahoo.com/news/Banks-repossess-1-million-apf-1937862554.html?x=0

Municipal Bond defaults?

Municipal Bond defaults edge closer as governments can't pay their debts. I'm pretty sure we shared this with you a long time ago when Kirk Nace told us it was coming...

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/41036244

And the hits just keep coming

More on the MA Supreme Court rulings - enjoy.

Click on the title above or the link below to review the entire New York Post article.
http://www.nypost.com/p/news/opinion/opedcolumnists/another_housing_market_nightmare_p8dc29PqBARzizaXrzXkzL

More on the recent MA Supreme Court ruling...

and it appears Kirk Nace was once again accurate in his prognostications.

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/40969556

MA Supreme Court ruling...

Watch out, this could get ugly! I was on a call with Kirk Nace several months ago where this was discussed and he told us all it would take a while to work itself out but this foreclosure mess has the potential to be hugely negative for lenders and possibly even for those who bought properties that had been foreclosed on...stay tuned.

Click on the title above or the link below to review the entire article.
http://www.massrealestatelawblog.com/2011/01/07/ibanez-foreclosure-ruling-upheld-an-indictment-of-the-securitized-mortgage-system/

Whats another 4 or 5 years?

Even Bernanke is starting to acknowledge housing prices will go down further and that high unemployment rates will be sticking around for years!

Click on the title above or the link below to review the entire CNBC article.
http://www.cnbc.com/id/40962516

WOW - underestimates on mortgage mess???

I'm pretty sure our favorite housing market guru, Kirk Nace, would say "Gee, IF only we had known." Of course, Kirk has shared this with his followers FOR YEARS!

Click on the title above or the link below to review the entire CNBC article.

http://www.cnbc.com/id/40913381

Baby Boomer Bust

click on the title above or cut and paste here:
http://finance.yahoo.com/news/Why-Baby-Boomers-Are-Bummed-usnews-1665637998.html?x=0
To access one of many great articles on how the economy is impacting Baby Boomers.

For most, there is no boom, just a huge bust. In general they are disappointed and disgusted, they can't afford to retire and live the life they were promised. How did this happen? Glad you asked:

1 They were irresponsible in that they allowed their elected officials to consistently rob from Peter to pay Paul.

2 They enjoyed the moment without thinking of the future. Have you seen the movie "Ants?" Baby Boomers lived as grasshoppers, they were the all powerful biggest population group ever. Everyone needed to tend, or cater, to their needs - yeah, how did that work out?

3 They bought into the hype that children are ENTITLED to a better life than their parents. Of course theirs were the parents who created this myth. Having survived the 1st Great Depression, parents of the baby boomers swore that their kids would never suffer the way they had suffered during the 1st depression, so they gave baby boomers more than they had earned. This of course taught baby boomers that this is what parents do, so the baby boomers then did the same with their children.

4 They turned over responsibility for their well being to others. To the companies they worked for, to their government, to an army of financial types all of whom claimed to have their best interests at heart . . . they have now learned that talk is cheap and they should have looked over their financial well being themselves.

5 They looked the other way - repeatedly. It's impossible to mention all the times and places where, as a nation, we looked the other way because it was easier. Now, and for decades to come, we will pay the price for this.

I hold no animosity for the baby boomers, they didn't plot to maliciously harm others (and themselves in the process.) Instead they were simply lazy . . . like most of the rest of the Sheeple in the US today.

What's the answer? Another great question. We could do what this country did in the 30's and 40's - roll up our sleeves and go to work rebuilding. Honestly, I doubt that as a nation we have the fortitude to undertake and succeed with such a plan. So reality will most likely prove to be that the US, or in the future the pieces that it becomes, will drop to a second tier country and we as a mass of sheeple learn to settle because it will be easier.

Where do you see things going?

Got A Pension Plan? Are You Sure?

Happy New Year!!! It's now 2011 and after many years of hard work and long hours, you've finally reached that magic number and are ready to retire. Or are you?

Just last week we posted an article about the town of Prichard, Alabama. IF you haven't already read it, go back and do so and see how the unthinkable happened. Then click on the title above or the link below to review the entire Yahoo Finance article and see if your pension plan is in trouble.

http://finance.yahoo.com/news/7-Signs-Your-Pension-Fund-Is-investopedia-4127115396.html?x=0&.v=1

Want Multiple Offers???

I spoke with Kirk Nace, the creator of The 6 Week Listing Strategy, regarding multiple bids and he said that his strategy allows all sellers to create the competition necessary to maximize their equity preservation. You can find more information at www.6weekListingStrategy.com

Click on the title above or the link below to review the entire Star Tribune article.

http://www.startribune.com/business/112696234.html?elr=KArks:DCiU1OiP:DiiUiD3aPc:_Yyc:aUoD3aPc:_2yc:a_ncyD_MDCiU

Market taking longer to absorb foreclosed properties

S&P says 44 months, and growing, to clear out shadow inventory. If the estimate is now up to 44 months, and that number gets larger each quarter...when will we truly see a bottom?


Click on the title above or the link below to review the entire MarketWatch article.

http://www.marketwatch.com/story/sp-warns-on-shadow-inventory-of-foreclosures-2011-01-03?reflink=MW_news_stmp

100,000 foreclosures in January?

NAR chief economist is now "hopeful" that housing market will improve. READ THIS AS NOW EVEN NAR IS RECOGNIZING THAT THE $HI!* IS ABOUT TO HIT THE FAN!

Click on the title above or the link below to review the entire NPR article.

http://www.npr.org/2011/01/03/132523689/u-s-home-foreclosures-may-top-100-000-in-january

The LAW of Supply and Demand as applied to real estate

Click on the title above or the link below to review the entire Bloomberg article.

http://www.bloomberg.com/news/2011-01-03/how-i-missed-the-housing-recovery-of-2010-commentary-by-caroline-baum.html

So Simple a caveman could understand:

Why did Bernie Madoff go to prison? To make it simple, he talked people into investing with him. Trouble was, he didn't invest their money. As time rolled on he simply took the money from the new investors to pay off the old investors.



Finally there were too many old investors and not enough money from new investors coming in to keep the payments going.



Next thing you know Madoff is one of the most hated men in America and he is off to jail. Some of you know this, but not enough of you.



Madoff did to his investors what the government has been doing to us for over 70 years with Social Security. There is no meaningful difference between the two schemes, except that one was operated by a private individual who is now in jail, and the other is operated by politicians who enjoy perks, privileges and status in spite of their actions.



Do you need a side-by-side comparison here?



BERNIE MADOFF = Takes money from investors with the promise that the money will be invested and made available to them later.
SOCIAL SECURITY = Takes money from wage earners with the promise that the money will be invested in a "Trust Fund" and made available later.

BERNIE MADOFF = Instead of investing the money Madoff spends it on nice homes in the Hamptons and yachts.
SOCIAL SECURITY = Instead of depositing money in a Trust Fund the politicians use it for general spending and vote buying.

BERNIE MADOFF = When the time comes to pay the investors back Madoff simply uses some of the new funds from newer investors to pay back the older investors.
SOCIAL SECURITY = When benefits for older investors become due the politicians pay them with money taken from younger and newer wage earners to pay the geezers.

BERNIE MADOFF = When Madoffs scheme is discovered all hell breaks loose. New investors won't give him any more cash.
SOCIAL SECURITY = When Social Security runs out of money they simply force the taxpayers to send them some more.

BERNIE MADOFF = is in jail.
POLITICIANS = remain in Washington.





The taxpayer: "That's someone who works for the federal government but doesn't have to take the civil service examination." - Ronald Reagan



"If you put the federal government in charge of the Sahara Desert, in five years there'd be a shortage of sand." - Milton Friedman