muses of the moment

July 14, 2011

Real Estate

Filed under: Housing Market, Martin Armstrong — totallygroovygirlfriday @ 6:44 pm

Gary Shilling says we have another 20% drop in housing to look forward to. Click here for video and text details.

It’s funny, the real estate guys keep extending their timeline for “recovery in housing”. Shilling is up to 5 years now.

Maybe they should have read Martin Armstrong’s real estate article about how the US is in a 26-year decline in real estate that started in 2007. And housing prices will be at inflation-adjusted 1950’s prices before it is all over. It is a long cycle in real estate that begin in the 1950’s, peaked in 2007, and will hit a low in 2033. This cycle is driven by debt creation and debt destruction.

We will have a decline into 2033 because if no one can get a loan, no one can buy a house. No one will be able to get a loan for anything (let alone a house) because of the global debt implosion. This is much bigger than a simple supply and demand cycle or a streak of unemployment.

A house is a place to live, not an investment. If you buy a house now, be prepared for it to go down in value. There are other reasons for purchasing a house, such as location, your ability to modify it (especially with alternative energy systems), security, access to land, etc. Weigh these new factor before buying.

Silver update

Filed under: Gold and Silver Investing, Precious metals — totallygroovygirlfriday @ 8:31 am

As gold hit new highs in three different currencies yesterday (including the USDollar, at 1592 right now!), the deliverable physical inventory of silver at the COMEX moved down again. Click here.

Debt talks break down in US and Europe, as if anything they are negotiating will actually solve the global debt problem…..

You will have to protect yourselves.

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