Last week, the Washington-based Center on Budget and Policy Priorities said 27 states are reporting projected budget shortfalls next year totaling at least $39 billion.
I realize that its normal for some states to run a deficit. But click on the article. Look at the graph. Basically the states in the most trouble are the bubble markets.
Never before has the US been so leveraged at the city, state, national, and personnel level. Many news stories start with "the nation clearly in recession." Its not the media driving the story, its what their audience wants to hear.
Got Popcorn?
Neil
3 comments:
2011 to 2014 for the prediction of the bottom of the market is most likely, very off the mark.
allowing circumstances out of your control to dictate to you how to live you life is unacceptable (at least to me).
You want it? Go out and get it!
We are already into this housing downturn 24 months. Figure another 12 months and with a recession - maybe another 12 months - then a leveling off effect, maybe marginal appreciation for a year or so, then a general 4 to 5% appreciation values restored. Of course, there will be "hot pockets" throughout the country, like there always is.
If you allow things outside of yourself to stop you from doing something - you're not living. You're waiting. Don't put your life on hold.
Go out make more money! Start a business. Do what ever you must to make your mark!
maybe marginal appreciation for a year or so, then a general 4 to 5% appreciation values restored.
LOL! Not going to happen. RRE appreciation isn't coming back for a decade at least.
Homes are going back to being things you live in -and- a forced piggy bank, nothing more.
then a leveling off effect, maybe marginal appreciation for a year or so, then a general 4 to 5% appreciation values restored.
As TJ noted, its not happening. Nothing determines one's standard of living more than when you buy housing during the real estate cycle. Those that bought 2003 through 2008 will have a far reduced standard of living compared to others.
My life isn't on hold. I'm just smart enough to do delayed gratification. My waiting has so far saved me $300k where I want to buy. I see no reason it won't save me another $300k.
Buying at the start of a 2 to 3 year recession is a really bad choice. Its adapting to circumstances outside of my control. Delayed gratification.
Be bold when others are afraid. Or in the words of the scion of Rothschild, "when their is blood in the streets." That time is years away. I've seen the misery people go through over-paying for homes. The only people I know of foreclosed out of high end areas made that mistake. The rent/buy ratios are too far out of whack to even begin considering purchasing.
The most successful business men I know warn to only start a business after the upswing is obvious. Considering *every* non-silver spoon multi-millionaire I know believes in that advice... I think I'll heed it.
Got Popcorn?
Neil
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